Interesting Legal Debacle

Well. Im not 100% sure but its pretty clear to me.
As as soon as the owner found out. They flew back to australia and informed their friend they knew what was happening . And the tenants were kicked out pronto

 

Here is a section from the relevant legislation:

"(2) If you use the part of the * dwelling that was your main residence for the * purpose of producing assessable income, the maximum period that you can treat it as your main residence under this section while you use it for that purpose is 6 years. You are entitled to another maximum period of 6 years each time the dwelling again becomes and ceases to be your main residence. "

Note the word 'you'.

If that guy is not acting as their agent then they may be onto something.

 

hmm thats interesting, however if the person hired a proper PM and did ask them rent it out, then its not YOU thats renting it out, but you are asking someone too. so I doubt saying "it wasnt me, it was the agent" wont fly at all,
but if done without the owners knowledge, then you have a very good point there

 

If the third party had possession of the owner's keys etc., and were previously renting out the property with permission, I think unless they had proof of written instructions "stop renting out the property", they're going to have a hard time proving lack of permission.

But maybe they do have proof that they instructed them to stop renting out the property.

 

It is you that is renting it out because the agent is your agent - they are contracting on your behalf.

 

yeah ,thats entirely possible,

but can it be argued that (in the event of no evidence) that the rental income never was paid to the owner?

I know for a fact that the property was purchased a long time ago cheap, and has grown signficantly, so say 1m in CG, the tax exemption would definitely be 6 figures, not loose change!

 

Can’t see that one working with the ATO. And how can you prove something didn’t happen? Cash? Goods in Exchange?

Otherwise brown paper bags of cash would be exchanged with the owner denying any knowledge...... everyone would jump on the bandwagon!
Marg

 

fair point, geez, just goes to show you really have to trust someone and be careful with who you trust!
this person could be out $100ks because of the greed and misbehaviour of one individual.

Shall I take back my house keys from my brother!?

 

Google maps images are not usually current, can be a few years old.