Do you own an investment property or a high-value lifestyle asset like a boat or aircraft? The Australian Taxation Office (ATO) is taking a closer look to ensure what’s declared in tax returns matches reality.
The ATO has launched two data-matching programs, targeting both investment property owners and individuals with luxury lifestyle assets. Here’s what you need to know.
Investment Property Owners
The ATO has always had a keen interest in what investment property owners declare and claim on their personal income tax returns. Building on previous programs that reviewed residential investment property loan data and landlord insurance, the ATO’s latest move targets property management software data from the 2018-19 to 2025-26 financial years. The data collected will include:
- Property Owner Details: Names, addresses, phone numbers, dates of birth, email addresses, business names, and ABNs.
- Property Information: Address, the date it was first available for rent, property manager details, and owner bank details.
- Transaction Records: Rental periods, transaction types, descriptions, amounts, ingoings and outgoings, and rental account balances.
Since 1 July 2016, the ATO has also received data from state and territory governments, reporting all real property transfers each quarter. This latest data-matching initiative intensifies the ATO’s scrutiny of landlords, specifically targeting those who:
- Fail to lodge rental property schedules,
- Omit or incorrectly report rental income and deductions,
- Incorrectly report capital gains tax (CGT) details.
Lifestyle assets
If you own luxury items, such as high-end vehicles, boats, or artwork, the ATO is also watching. Data from insurance providers is being cross-referenced to identify ownership of expensive lifestyle assets, including:
- Caravans and motorhomes valued at $65,000 or more
- Cars, trucks, and motorcycles valued at $65,000 or more
- Thoroughbred horses valued at $65,000 or more
- Fine art valued at $100,000 or more per item
- Marine vessels valued at $100,000 or more
- Aircraft valued at $150,000 or more
The data collected includes personal details of policyholders, purchase price, identification details, and the primary use of the asset. The ATO is particularly focused on those who:
- Accumulate or improve assets without reporting them,
- Dispose of assets without declaring the income or capital gains,
- Incorrectly claim GST credits,
- Omit or incorrectly report fringe benefits tax (FBT) when assets are used personally but held by a business.
By ramping up these data-matching programs, the ATO aims to ensure full compliance with tax obligations, so make sure your declarations are accurate and up-to-date.
If you need assistance navigating these ATO requirements or ensuring your tax declarations are accurate, our team at Walker Hill is here to help. Whether it’s investment property income, capital gains, or luxury asset reporting, we’ve got the expertise to guide you through the process. Contact us today at support@walkerhill.com.au to make sure you’re on the right track.
