With the financial year just ending, the ATO has recently released a series of announcements detailing their audit focus for the upcoming tax season. Following our first article another focus is on rental properties after recent audit activities revealed errors in 9 out of 10 rental property tax returns.
The ATO has announced it will double their in-depth audits of rental claims to 4,500 returns this year with a specific focus on overclaimed interest, improvements wrongly classified as deductible repairs and incorrect apportioning of expenses when the rental property is not available to rent.
If you rent out your own home or a holiday home, you need to declare this as income. Your expenses claimed should be apportioned for any private use or any time the property was not available to rent.
If you need assistance with your rental property claim, please do not hesitate to contact us.