Property investors on notice after ATO spots false claims

Rental property owners who use their own property for personal holidays will be the subject of increased focus by the ATO due to a large number of mistakes, errors and false claims in recent years.

We remind clients that you cannot claim for times when you were using your rental property for your own family holidays or letting your friends stay without paying rent. Also, deductions can only be claimed for your rental property if your property is genuinely available for rent and then only up to the amount of the rent received.

New technology, data matching and other systems are allowing the ATO to identify unusual claims which will be investigated, particularly where claims are disproportionate to the amount of income received.

We recommend the following to rental property owners:

  • keep accurate records of all income received;
  • keep copies of receipts for expenses that were incurred;
  • have evidence of the property being rented or genuinely available for rent at market rates;
  • keep records of who stayed at the holiday home and when (including you and your family).

If you are not sure about the amount of deduction you can claim, call us on 3822 7201.

For further information from the ATO, you can CLICK HERE