Do you own an investment property or perhaps a luxury asset like a boat or aircraft? The ATO is examining your tax return to ensure that what you declare adds up.
The Australian Taxation Office (ATO) has introduced two crucial data-matching programs targeted at property owners and those with high-value lifestyle assets. Understanding these programs is essential for staying compliant with the latest tax regulations.
Investment Property
If you own an investment property, what you declare and claim on your personal tax return is always of interest to the ATO. Following previous data matching initiatives that scrutinised residential investment loans and landlord insurance, a new program now targets data from property management software, covering the 2018-19 financial year right through to 2025-26.
The ATO’s data collection is comprehensive, covering all aspects of your property and lifestyle assets, including:
- Identification details of the property owner, such as names, addresses, contact info, business names, and ABNs (if relevant).
- Specifics of the property, such as its address, when it was first available for rent, and details of the property manager.
- Transaction data, including ingoings and outgoings, transaction descriptions, and rental property account balances.
Since July 2016, the ATO has also gathered data about property transfers from state and territory governments. This new initiative is a further push to identify landlords who may be underreporting rental income, neglecting to lodge rental schedules, or incorrectly reporting capital gains tax (CGT).
Lifestyle Assets
You might also be on the ATO’s radar if you own big-ticket lifestyle items, like a caravan, motorhome, luxury car, boat, or fine art. They’re collecting data from insurance companies to cross-check ownership of high-value assets such as:
- Caravans, motorhomes, or vehicles valued at $65,000 or more.
- Thoroughbred horses valued at $65,000 or more.
- Fine art worth $100,000 or more per item.
- Boats worth $100,000 or more.
- Aircraft valued at $150,000 or more.
This data includes everything from the policyholder’s details to purchase price, use, and other critical factors. The ATO is particularly focused on those who may be selling assets without reporting the income or capital gains, wrongly claiming GST credits, or failing to report fringe benefits tax (FBT) when business assets are used personally.
What’s Next?
If you suspect that you might be affected by these data-matching programs, it’s crucial to review your tax records. If you need assistance, our team is here to provide expert advice and guidance on navigating the ATO’s latest initiatives.