Earlier this year the Australian Taxation Office (ATO) announced that they would double the number of audits being conducted into rental properties. In 2017/18 more than 2.2 million taxpayers claimed $47 billion in deductions. Assistant Commissioner Gavin Siebert advised that in order to target potential overclaiming they would:
“use a range of third party information including data from financial institutions, property transactions and rental bonds from all states and territories, and online accommodation booking platforms, in combination with sophisticated analytics to scrutinise every tax return. Where we identify claims of concern, ATO staff will investigate and prompt taxpayers to amend unjustifiable claims. If necessary, we will commence audits”
What can you do this tax time to make sure that if you are one of the “lucky” 4,500 taxpayers who will get a please explain letter from the ATO, you have the confidence that you are claiming everything you’re entitled to without falling foul of the law? Continue reading “Rental income & deductions: How to get it right!”