Save
Tax form trips up Aussies with new rules in play
Taxpayers should be cautious when they’re claiming deductions for investment properties this tax time, and be mindful of one step on their lodgement forms in particular.
Tax form trips up Aussies with new rules in play
Taxpayers should be cautious when they’re claiming deductions for investment properties this tax time, and be mindful of one step on their lodgement forms in particular.
Property investors will no longer be able to claim travel expenses to inspect residential investment properties, as per a measure introduced in the 2017 federal budget.
Mark Chapman, director of tax communications at H&R Block, has seen a lot of confusion from property investors this tax time related to this measure, particularly as there is still a provision to claim travel on tax forms.
“Some additional confusion’s been caused, particular in relation to the travel, because if you actually look at the tax return, there is still a box there where you can claim travel, even though the law says you can’t, and I think that has tripped up some people,” Mr Chapman told Nest Egg sister publication Smart Property Investment.
“Essentially, if you are running a rental property portfolio, if you’ve got rental properties, you just can’t claim travel for the tax year that’s just gone. Any deductions cease to be available at the 30th of June 2017. So, from the 1st of July 2017 onwards, there’s no claim,” he explained.
What does the ATO say?
Although this travel allowance has been largely scrapped, there are certain taxpayers who can claim a deduction for travel expenses incurred relating to their rental property from 1 July 2017, including if:
- you are an excluded entity;
- you are using the property in carrying on a business (including a rental property business); or
- the property is not a residential rental property.
"Given there are taxpayers who fit the criteria above, it is necessary for return forms to have provision to claim the deduction," said ATO assistant commissioner Kath Anderson.
"Best practice for investors is to talk to their agent about the deductions they can and cannot claim, and familiarise themselves with the changes by reviewing the ATO website."
Tax saving
How are Australians planning on spending their tax savings?
Essential bills, savings accounts, Christmas gifts and exchange-traded funds appear to be the big winners from the latest round of tax cuts, new research has revealed. ...Read more
Tax saving
First in the world: SA imposes EV tax
The South Australian government is the first government in the world to introduce an electronic vehicles tax following an announcement by the treasury. ...Read more
Tax saving
5 tips as tax deadline looms
Australians are being warned that they have just two weeks left to get their finances in order if they have not posted a tax return yet. ...Read more
Tax saving
ATO warns businesses of JobKeeper scam
The ATO is warning the community about a JobKeeper scam which is asking members to enter personal information. ...Read more
Tax saving
Why fast-tracking tax cuts won’t stimulate the economy
Treasurer Josh Frydenberg has flagged that previously legislated tax cuts could be moved forward in a bid to help stimulate the Australian economy. ...Read more
Tax saving
Last-minute items to check off before 30 June
With the end of the financial year almost here, an accounting firm has outlined key changes with tax returns this year and flagged some last-minute tax strategies to consider before 30 June. ...Read more
Tax saving
Australia’s richest owe the Tax Office $772m
Australia’s elites and private companies fell $772 million in taxes due to miscalculations and deliberate tax avoidance, the Australian Taxation Office has revealed. ...Read more
Tax saving
Do you have to pay taxes on a trust?
Trusts are usually set up for business, estate planning and investment purposes to separate the legal and beneficial ownership of assets held within the structure. ...Read more
Tax saving
How are Australians planning on spending their tax savings?
Essential bills, savings accounts, Christmas gifts and exchange-traded funds appear to be the big winners from the latest round of tax cuts, new research has revealed. ...Read more
Tax saving
First in the world: SA imposes EV tax
The South Australian government is the first government in the world to introduce an electronic vehicles tax following an announcement by the treasury. ...Read more
Tax saving
5 tips as tax deadline looms
Australians are being warned that they have just two weeks left to get their finances in order if they have not posted a tax return yet. ...Read more
Tax saving
ATO warns businesses of JobKeeper scam
The ATO is warning the community about a JobKeeper scam which is asking members to enter personal information. ...Read more
Tax saving
Why fast-tracking tax cuts won’t stimulate the economy
Treasurer Josh Frydenberg has flagged that previously legislated tax cuts could be moved forward in a bid to help stimulate the Australian economy. ...Read more
Tax saving
Last-minute items to check off before 30 June
With the end of the financial year almost here, an accounting firm has outlined key changes with tax returns this year and flagged some last-minute tax strategies to consider before 30 June. ...Read more
Tax saving
Australia’s richest owe the Tax Office $772m
Australia’s elites and private companies fell $772 million in taxes due to miscalculations and deliberate tax avoidance, the Australian Taxation Office has revealed. ...Read more
Tax saving
Do you have to pay taxes on a trust?
Trusts are usually set up for business, estate planning and investment purposes to separate the legal and beneficial ownership of assets held within the structure. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
