Under the new rules, investors aren’t allowed to deduct travel expenses associated with their residential property investments.
However, some tax returns are still coming through to the ATO – from tax agents – where travel claims have been incorrectly included.
Although this can be an inadvertent error, it still constitutes breaking the rules, and can result in dispute or penalty.
There also might be a simple, administrative reason errors are making it through to the ATO – there is still a box on tax forms that allow for travel to be claimed.
“Some additional confusion has been caused, particularly 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,” said Mark Chapman of national tax and accounting network H&R Block.
There are a series of other deductions the ATO will be keeping a close eye on this tax season. You can read a comprehensive breakdown of those deductions here.