May 6th 2024.
Attention all landlords! The ATO has issued a warning to step up your game this tax season. Shockingly, 9 out of every 10 rental property owners have been submitting incorrect tax returns. To tackle this issue, the tax office has announced their three main areas of focus for this year, and it seems landlords are in the spotlight for claiming expenses they are not entitled to.
According to the ATO, data shows that a staggering 90% of landlords are making errors when it comes to their tax returns. Assistant Commissioner Rob Thomson expressed their concern, stating that landlords often make mistakes when claiming repairs and maintenance deductions for their rental properties. This year, the ATO is paying special attention to claims that may have been inflated to offset increases in rental income, resulting in a higher tax benefit.
In addition, the ATO has reminded landlords that they cannot claim property improvements as immediate deductions. Thomson clarified that while general repairs, such as replacing damaged carpet or a broken window, can be claimed immediately, major improvements, like a new kitchen, can only be deducted over time as capital works. Thomson urged landlords to carefully review their records before lodging their return to ensure that they are claiming deductions correctly.
The other two areas of concern for the ATO are work-from-home expenses and not including all income. Thomson explained that the latter mistake is often made by those who lodge their returns in early July, rather than waiting until the end of the month or August when most information is automatically pre-filled. He highlighted that people often forget to include interest from banks, dividend income, payments from government agencies, and private health insurers when lodging early.
Thomson also emphasized that while most errors on tax returns are genuine mistakes, some people knowingly claim expenses they are not entitled to. He cautioned taxpayers to take the time to get their return right and not risk facing consequences for deliberate errors.
In the midst of all this tax talk, the ATO also announced that Qantas will be repaying customers $20 million for cancelled flights. And in case you missed it, you can stay updated on all the latest breaking news, celebrity gossip, and sports news by following our WhatsApp channel. No comments, no algorithm, and your privacy is protected. Stay connected with us!
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