Invest
Major blitz coming for property investors
Almost all property investors are making errors on their tax deductions, and the Tax Office is set to launch a major crackdown to correct and catch inappropriate claims.

Major blitz coming for property investors
Almost all property investors are making errors on their tax deductions, and the Tax Office is set to launch a major crackdown to correct and catch inappropriate claims.

The Tax Office recently conducted an audit of over 300 rental property claims. It found errors in almost nine out of 10 returns reviewed.
“We’re seeing incorrect interest claims for the entire investment loan where it has been refinanced for private purposes, incorrect classification of capital works as repairs and maintenance, and taxpayers not apportioning deductions for holiday homes when they are not genuinely available for rent,” said ATO boss Chris Jordan.
“And when you consider that rentals include over 2.1 million taxpayers claiming $47.4 billion in deductions, against $44.1 billion in reported income, you can get a sense of the potential revenue at risk,” he said.
The ATO is now set to target these inappropriate deductions, on top of the compliance work it is already doing with property investors.
Short-term rentals are on the ATO’s watchlist, as platforms like Airbnb continue to grow in popularity.
By using the new data provided by online rental platforms, including income received per listing as well as listing dates, enquiry and booking rates, prices charged or quoted per night, and other information, the ATO will seek to identify taxpayers not meeting their registration, reporting, lodgement or payment obligations.
The new data complements long-term rentals information that the ATO already receives from state and territory bond boards.
Further, the ATO is monitoring compliance with new rules about travel deductions to and from investment properties.
Under legislation that applied from 1 July 2017, taxpayers are no longer able to claim any deductions for the cost of travel to their investment property, with very few exclusions.
Further, income tax deductions for the decline in value of previously used plant equipment in an investment property are no longer allowed.
You can read more about this here.

Property
Which capital cities are most attractive to property investors?
A new survey has suggested that investor attention is shifting away from Australia’s two largest capital cities. ...Read more

Property
Market uncertainty fails to discourage foreign property investors
While interest from foreign investors in Australian property has remained strong, HLB Mann Judd warned that tax increases could see demand shift to other markets. ...Read more

Property
Regional renters forced to spend more of their income than ever before
Renters in regional areas are spending nearly as much on rent as home owners are spending on mortgage repayments. ...Read more

Property
Aussie home buyers now need to save for over 11 years for a deposit
Since early 2020, the time needed to save for a deposit has increased by more than two years. ...Read more

Property
HSBC forecasts 2023 house price decline of up to 10%
The firm had previously predicted a modest rise for house prices next year. ...Read more

Property
Perth house prices continue climbing to a record high
While growth may have come to an end in Sydney and Melbourne, Perth house prices are still on the rise. ...Read more

Property
Stamp duty significantly slowing path to purchase for FHB
Saving for a home takes years for the typical first-time buyer. In Australia’s largest cities, as much as two years are spent simply building up the funds to pay the cost of stamp duty, according to...Read more

Property
House values dragged down in latest index
A new set of figures outlining the present state of Australia’s residential property market has been released, indicating a bleak outlook for growth in metropolitan areas as the Reserve Bank of Aust...Read more

Wrapping up an eventful 2021
Listen now

What Omicron means for property, and are units right for first-time buyers? What is equity crowdfunding? Are industry super funds tapping into member funds to save their skins?
Listen now

Will housing affordability improve in 2022? Will buy now, pay later become the norm? Why are Aussies staying in failing super products?
Listen now

Who really benefits from crypto ETFs? How will the RBA respond to rising inflation? Could a mandate help address unpaid super?
Listen now

Property
Which capital cities are most attractive to property investors?
A new survey has suggested that investor attention is shifting away from Australia’s two largest capital cities. ...Read more

Property
Market uncertainty fails to discourage foreign property investors
While interest from foreign investors in Australian property has remained strong, HLB Mann Judd warned that tax increases could see demand shift to other markets. ...Read more

Property
Regional renters forced to spend more of their income than ever before
Renters in regional areas are spending nearly as much on rent as home owners are spending on mortgage repayments. ...Read more

Property
Aussie home buyers now need to save for over 11 years for a deposit
Since early 2020, the time needed to save for a deposit has increased by more than two years. ...Read more

Property
HSBC forecasts 2023 house price decline of up to 10%
The firm had previously predicted a modest rise for house prices next year. ...Read more

Property
Perth house prices continue climbing to a record high
While growth may have come to an end in Sydney and Melbourne, Perth house prices are still on the rise. ...Read more

Property
Stamp duty significantly slowing path to purchase for FHB
Saving for a home takes years for the typical first-time buyer. In Australia’s largest cities, as much as two years are spent simply building up the funds to pay the cost of stamp duty, according to...Read more

Property
House values dragged down in latest index
A new set of figures outlining the present state of Australia’s residential property market has been released, indicating a bleak outlook for growth in metropolitan areas as the Reserve Bank of Aust...Read more