Powered by momentummedia
nestegg logo
Powered by momentummedia
nestegg logo
nestegg logo

Earn

New ‘lifestyle assets’ on taxman’s hit list

By Cameron Micallef · December 19 2019
Reading:
egg

Earn

New ‘lifestyle assets’ on taxman’s hit list

By Cameron Micallef
December 19 2019
Reading:
egg
Lifestyle assets

New ‘lifestyle assets’ on taxman’s hit list

author image
By Cameron Micallef · December 19 2019
Reading:
egg
Lifestyle assets

The ATO has announced its plans to crack down on “lifestyle assets” as the government agency tries to receive a larger share of tax revenue.

In its announcement, the Australian Taxation Office is requesting an extra five years worth of policies from 30 insurance companies around expensive assets that might not match income statements.

The taxman is specifically targeting marine vessels, thoroughbred horses, fine art, high-value motor vehicles and aircraft.

ATO deputy commissioner Deborah Jenkins believes knowing who owns lifestyle assets such as private jets and yachts will help the government service get a complete picture around the financial situation of taxpayers compared with what is reported.

“If a taxpayer is reporting a taxable income of $70,000 to us but we know they own a $3 million yacht, then this is likely to raise some red flags,” Ms Jenkins said.

Advertisement
Advertisement

“Regardless of your level of wealth, we all need to pay the correct amount of tax, and this data will allow us to ensure those people who can afford these kinds of items are doing the right thing, along with everyone else,” Ms Jenkins continued.

Aside from helping identify taxpayers who may be understating their income, the data from insurers may be used by the ATO to identify taxpayers who have made capital gains on the disposal of certain assets but who have not declared this to the ATO.

“With high-value assets like fine art, there can be some significant capital gains made when these assets are sold, and capital gains tax may need to be paid on the sale or disposal of these items,” Ms Jenkins said. 

Insurers will be required to provide the ATO with detailed policy information where the value of assets is equal to or exceeds the following thresholds:

  • Marine vessels: $100,000
  • Motor vehicles: $65,000
  • Thoroughbred horses: $65,000
  • Fine art: $100,000 per item
  • Aircraft: $150,000
New ‘lifestyle assets’ on taxman’s hit list
Lifestyle assets
nestegg logo

Forward this article to a friend. Follow us on Linkedin. Join us on Facebook. Find us on Twitter for the latest updates
Rate the article
author image

About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

Join the nestegg community

We Translate Complicated Financial Jargon Into Easy-To-Understand Information For Australians

Your email address will be shared with nestegg and subject to our Privacy Policy

About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

Join The Nest Egg community

We Translate Complicated Financial Jargon Into Easy-To-Understand Information For Australians

Your email address will be shared with nestegg and subject to our Privacy Policy

From the web

Recommended by Spike Native Network

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.