Someone has to pay for that Trillion Dollar debt
And the only way to close the gap, is to raise extra money through the Tax Office. We would not dare suggest that cutting costs from that ever increasing bureaucracy could be a good idea.
So expect the ATO to fire a few shots as they slowly but purposefully target areas that they believe will net them good results.
And the first volley for the year gets targeted at Holiday Homes (Rental Properties).
And fair enough, if you are getting a bit creative with your tax deduction claims then maybe you deserve to cop a couple of wacks, but if you're one of the many honest taxpayers out there, then this time around you'll need to exercise a higher degree of caution and get that record keeping right.
Kath Anderson, the assistant commissioner, reckons there's $1.6 billion up for grabs from landlords claiming deductions that would fail the "Pub Test", "quite often clients are not telling their agents or providing them with all of the information they should have".
Part of that process will be the requirement to provide additional information with your Rental Schedules, and a closer scrutiny on what you are claiming. The ATO has benchmarked much of the rental data available and will engage red flags were appropriate.
If you are uncertain as to what to claim or how to go about claiming a tax deduction; or even whether some expense is a Tax Deduction, then drop us a line and we will assist.
Another great fantastic quality article from....
Mr G Tax.
P.S.... That "Pub Test" is a very real thing, don't rely on your Pub Mates or Matetts to tell you what you can or can't claim. Even if their accountant is doing it!