Preston 15 May2023(TIE)
The Australian Taxation Office (ATO) has issued a warning to rental property investors that it will be taking swift action against those who file incorrect tax returns. According to ATO assistant commissioner Tim Loh, regular reviews of property investors’ deductions have revealed that “nine out of 10 returns are incorrect,” which he called an unacceptable rate.
To address this issue, the ATO will be increasing its efforts to educate rental property owners and their registered tax agents on their obligations and will be increasing its activities in this area. About 87 percent of rental property owners use registered tax agents.
The ATO’s three main focus areas for tax time 2023 are rental property deductions, work-related expenses, and capital gains tax, as it revealed that registered tax agents have been making a lot of the same mistakes in these areas.