Rent expenses under scrutiny

Discussion in 'Accounting & Tax' started by balwoges, 5th Jul, 2017.

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  1. balwoges

    balwoges Well-Known Member

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    Watched the speaker [Chris Jordan, CEO of ATO] at todays National Press Club. Good speaker and lots of information and advice given with humour. He went on to state rental expenses claimed for tax purposes on investment properties totalled $4 billion last year :eek: and the tax department intended to bring this figure down.
    Also under scrutiny would be small business and the 'black economy'.
     
    balwoges, 5th Jul, 2017
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  2. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    They can only "bring down" incorrect deductions. They cant disallow legal deductions.

    If everyone who owned a property who didnt have a QS report went and got one deductions would go up by a hell of a lot and there is jack that can be done other than change the law. And its not the ATOs role to change law.

    Humour....Did he mention Cranston ?
     
    Paul@PAS, 5th Jul, 2017
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  3. Perthguy

    Perthguy Well-Known Member

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    If this article is true, there are 2.7 million rental properties in Australia (1). That would make the expenses claimed $1481.48 per property. Or my maths is very, very wrong. If that's true, the deductions per property are very low. I reckon just my council rates are that much for one rental property.

    (1) http://www.mwcgroup.com.au/media/maximise-tax-deductions-for-your-investment-property
     
    Perthguy, 5th Jul, 2017
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  4. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Of more focus seems to be uniform deductions. Half the population claimed the deduction which seems unusual for the specifics. General street clothes arent deductible. he feels using that statistic that 5% of tax revenue is being under paid through incorrect deductions.

    The other issue I feel they will go hard on is the mistaken belief that you can claim $300 without receipts - even if you own a IP. Wrong. If you only claim $300 of deductions and no more then the substantiation isnt as strict BUT if you claim total deductions of $301 + then ALL deductions must be substantiated.

    This is explained in our PAS TV video

     
    Paul@PAS, 5th Jul, 2017
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  5. balwoges

    balwoges Well-Known Member

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    balwoges, 5th Jul, 2017
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  6. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    The elephant in the room. It must be a shattering event for the ATO and its leadership. Worse than the Petroulis affair. I may imagine that tax offences may be rewritten following this event. The independent counsel report will likely trigger far greater standards for professional advisers too. Or were they just criminals acting like professionals ?
     
    Paul@PAS, 6th Jul, 2017
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  7. Tom Alaka

    Tom Alaka Well-Known Member

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    I forgot about that. Petroulis was himself convicted of fraud right ?
     
    Tom Alaka, 6th Jul, 2017
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  8. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Paul@PAS, 6th Jul, 2017
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