Is the ATO Watching You For Expensive Assets?

Probably. 

The Australian Taxation Office (ATO) new programs are focusing on investment property and luxury items owners. 

So, if you own luxury items like boats or planes, they may look at your assets and your tax returns more closely. 

Here’s what you should know. 

Investment Properties (Report Everything) 

The ATO has started collecting detailed info from property management reports, and they’re collecting records as far back as 2018-19. 

Here’s what they’re checking: 

• Personal details: Your name, address, date of birth, and if you have one, your ABN. 

• Property details: The address of your property, when it was first rented, and who manages it. 

• Financial details: All the rental income, your expenses, and even the balance of your rental account. 

Basically, they’re cross-checking all the rent you’ve earned, and all the costs you’ve claimed. 

That means if you’re not reporting your rental income, or overclaim some non-eligible expenses, the ATO will likely spot it. 

Expensive Lifestyle Assets: Are They On Your Tax Return? 

It’s not just property owners under the microscope. The ATO is also collecting details from insurance companies about big-ticket items like a luxury car, boat, and fine art. 

So if you own one of those, you may also be under the microscope. 

Here’s what they’re checking: 

• Cars, trucks, and motorcycles worth $65,000 or more. 

• Caravans and motorhomes valued at $65,000 more 

• Boats and yachts worth $100,000 or more. 

• Art pieces worth $100,000 or more. 

• Aircraft worth $150,000 or more. 

• Even thoroughbred horses worth $65,000 or more. 

The ATO is checking if you’re reporting these assets correctly. 

If you sell them, you may need to declare the income and pay capital gains tax. 

If you use them for personal reasons, then claiming them as a business asset could trigger extra taxes like Fringe Benefits Tax (FBT). 

It’s now more important than ever to report all your income, expenses, and assets. And to double check big ticket items to avoid extra taxes. 

The good news is, there are legal ways to structure your assets and pay less taxes. But the ATO has a lot of rules around this, and they change them very often in today’s fast pace environment. 

If you’re unsure of what you owe or what to do about it, it may be worth getting advice from a tax professional. 

If you want to save on taxes with less effort, get in touch for a free consultation and we can decide on the best way to manage your assets together.