Rental property income and capital gains are on the ATO’s target list

Assistant Commissioner Tim Loh of the Australian Taxation Office (ATO) said the ATO will focus on four key problem areas during tax season, including:

– revenue and deductions from rental properties;

– capital gains from real estate, stocks, and cryptocurrency;

– keeping records; and

– business-related expenses

“We realize there are still a few weeks until tax time,” Mr Loh says, “but if you start organizing the income and deductions records you’ve kept throughout the year, you’ll have a much easier time doing your taxes and claiming the deductions you’re entitled to.”

1. Income and deductions from rental properties

If you own a rental property, it’s critical to report all rental revenue in your tax return, including short-term rental arrangements, insurance payouts, and any rental bond money you keep.

“We know that many rental property owners hire a licensed tax agent to assist them with their tax issues. Mr Loh advises, “I encourage you to keep meticulous records because all rental income and deductions must be reported manually.”

He goes on to say that if the ATO notices a discrepancy, it may delay your refund since it will call you or your registered tax agent to fix the error.

Mr Loh adds, “We can also request supporting documents for any claim you make after your notice of assessment concerns.”

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2. Gains from real estate, stocks, and crypto assets

If you sell an item this fiscal year, such as a house, stocks, or a crypto asset like non-fungible tokens (NFTs), you must calculate a capital gain or loss and report it on your tax return.

A capital gain or loss is the difference between the price you paid for an asset and the price you receive when you sell it.

“We know that many Australians are purchasing, selling, or exchanging digital currency and assets through our data collecting methods, so it’s critical that individuals understand what this means for their tax duties,” Mr Loh says.

3. Record-keeping

The ATO has warned that people who intentionally try to enhance their refund, fabricate records, or cannot prove their claims may face stiff penalties this year.

If you’re not in a rush to finish your tax return, you might want to wait until the end of July, when the ATO will be able to pre-fill a lot of information for you.

“People rush to file their tax returns in July, and they neglect to include interest from banks, dividend income, payments from other government agencies, and payments from private health insurers,” the ATO notes.

Please keep in mind that not all information can be pre-filled for you, so double-check.

“We receive and match a lot of information on rental income, foreign-sourced income, and capital gains events involving shares, crypto assets, or property,” Mr Loh adds.

4. Expenses related to your job

Since the outbreak, many workers across the country have shifted to a hybrid working environment, with one-third of Australians claiming work-from-home expenditures on their tax returns last year.

“We would expect to see a commensurate drop in automobile, clothing, and other work-related expenses such as parking and tolls if you have continued to work from home,” Mr Loh explains.

There are three ways to claim a deduction for working from home expenditures, depending on your circumstances.

As long as you complete the eligibility and record-keeping requirements, you can use the shortcut method (all-inclusive), fixed-rate method, or actual cost approach.

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This tax season, we're here to assist you.

All finance professionals are busy at the end of the financial year, and mortgage brokers are no exception, as there are numerous key June/July deadlines we may assist you with.

This includes aiding your business in obtaining financing to take advantage of temporary full expensing before CoB June 30, as well as assisting first-time home purchasers in applying for the Home Guarantee Scheme on July 1.

So, if there’s anything we can help you with during the EOFY time, please don’t hesitate to ask – we’d be delighted to.’

To learn more, contact Premium Finance Group Australia at (07) 4720 8888 or email us at

Disclaimer: The content of this article is general and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your situation and may not be relevant to circumstances. Before taking any action, consider your particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced, or republished without prior written consent.

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