The Australian Taxation Office (ATO) is intensifying its focus on investment properties and high-value lifestyle assets, using advanced data-matching programs to ensure tax compliance. Here’s what you need to know to stay on the right side of the law.
Investment Properties: A Key Focus for the ATO
Investment properties have long been under the microscope of the ATO, with particular attention on what landlords declare and claim in their income tax returns. Recent developments include expanded data-matching efforts, collecting detailed information through property management software.
What Data Is the ATO Collecting?
From the 2018–19 financial year through to 2025–26, the ATO is capturing a broad range of data, including:
- Property Owner Details: Names, addresses, phone numbers, email addresses, and ABNs (if applicable).
- Property Information: Property addresses, availability dates for rental, property manager details, and landlord bank account information.
- Financial Transactions: Period start and end dates, transaction types, amounts, ingoings/outgoings, and rental property account balances.
Additionally, the ATO continues to collect quarterly property transfer data from state and territory governments, ensuring a comprehensive view of property ownership and transactions.
What Is the ATO Looking For?
The ATO is targeting property owners who:
- Fail to lodge rental property schedules.
- Omit or incorrectly report rental income or deductions.
- Omit or incorrectly report capital gains tax (CGT) details.
Lifestyle Assets: Expensive Items Under Scrutiny
If you own a high-value lifestyle asset like a boat, aircraft, or fine art, your asset could be part of the ATO’s latest data-matching efforts. Using insurance data, the ATO is cross-referencing asset ownership with tax returns to identify discrepancies.
What Assets Are Being Monitored?
The ATO is focusing on assets insured for high values, including:
- Caravans and Motorhomes: Valued at $65,000 or more.
- Motor Vehicles: Cars, trucks, and motorcycles valued at $65,000 or more.
- Thoroughbred Horses: Valued at $65,000 or more.
- Fine Art: Valued at $100,000 or more per item.
- Marine Vessels: Valued at $100,000 or more.
- Aircraft: Valued at $150,000 or more.
What Data is Being Collected?
The ATO is gathering substantial information, including:
- Personal details of policyholders.
- Policy information such as purchase prices and primary use of assets.
What Is the ATO Looking For?
The ATO aims to uncover:
- Undeclared income or capital gains from asset disposal.
- Incorrect claims for GST credits.
- Omissions or errors in fringe benefits tax (FBT) reporting for assets used personally but held by businesses.
Why Does This Matter to You?
These data-matching programs highlight the ATO’s commitment to ensuring taxpayers meet their obligations. For individuals and businesses, this means accurately reporting income, expenses, and gains related to investment properties and lifestyle assets.
Key Takeaway: If you own an investment property or high-value asset, now is the time to review your tax declarations and ensure compliance. Failure to do so could result in audits, penalties, or legal action.
