The ATO has started two data-matching programs that impact investment property owners and those who hold expensive lifestyle assets.
Investment property
What investment property owners declare and claim in their personal income tax returns is a constant focus for the ATO. The Australian Taxation Office (ATO) has started a new program to collect data from property management software. The data will cover the financial years from 2018-19 to 2025-26 and will include information on residential investment property loan data and landlord insurance. The data gathered will include:
- Property owner identification details such as name, phone number, address, email address, date of birth, business name and ABNs, if applicable
- Details of the property itself – address of the property, property manager name and contact number, date property first available for rent, property manager ABN and licence number, property owner or landlord bank details
- Property transaction details – start and end dates, transaction type, amounts and description, outgoings and ingoings, and rental property account balances.
Since July 1, 2016, the ATO has collected data from state and territory governments, who are required to report property transfers each quarter. This latest data matching program increases the focus of ATO on landlords, especially targeting those who fail to file rental property schedules when necessary, incorrectly report rental property income and deductions, and who inaccurately report capital gains tax details.
Lifestyle assets
Data from insurance providers is being used to address and cross-reference the ownership of expensive lifestyle assets. Included in the mix are:
- Motorhomes and caravans worth $65,000 or above
- Motor vehicles, including trucks and cars and motor vehicles worth $65,000 or above
- Thoroughbred horses worth $65,000 or above
- Fine art worth $100,000 per item or above
- Marine vessels worth $100,000 or above, and
- Aircraft worth $150,000 or above.
The collected data is substantial, including the personal details of the policyholder, the policy details including purchase price and identification details, and primary use, among other aspects. The ATO is paying attention to those improving or accumulating assets but not reporting these in their income tax return, selling assets and not reporting the income and/or capital gains, inaccurately claiming the GST credits and inaccurate fringe benefits tax reporting where the assets are held by a business but used privately.