In the 2015 financial year, the ATO conducted about 450,000 reviews and audits of individual taxpayers.

Small business owners have been reminded by the ATO to get their deductions right this tax time.

The ATO has also informed small business owners that it will use data analytics to automatically identify claims that might omit information or contain unreasonable deductions.

In the 2014-15 financial year, the ATO conducted about 450,000 reviews and audits of individual taxpayers, leading to revenue adjustments of over $1.1 billion in income tax, according to assistant commissioner Graham Whyte said that.

“If your claims are substantially higher than others in similar occupations, earning similar amounts of income, a message will appear, asking you to check them. This new process is just about helping you to make sure your claims are correct,” he said.

“If you are doing the right thing you have nothing to worry about. If you make an honest mistake we will help you fix it up and correct your tax return. We will not penalise you if you genuinely tried to get it right.

“But, if you didn’t make a reasonable or genuine attempt to get it right or are intentionally doing the wrong thing, you may receive a penalty.”