November 2024 Newsletter

Please click on the following link to view this month's newsletter for November 2024. We would like to highlight the following articles:-

Do you rent out your holiday home?

If your holiday home is rented out, the rental income you receive is taxable. You can claim expenses for the property to the extent they’re incurred in earning that rental income.

Your expenses will have to be apportioned if:

your property is genuinely available for rent for only part of the year;
you used the property yourself for part of the year;
only part of your property is used to earn rent; or
you charge less than market rent to family or friends to use the property.

Expenses that relate solely to the renting of your property don’t have to be apportioned. On the other hand, no deduction can be claimed for expenses that relate solely to periods when the property isn’t genuinely available for rent, is used for a private purpose or relates to the part of the property that isn’t rented out.

ATO data-matching: “lifestyle” assets and your business

The Australian Taxation Office (ATO) has announced the expansion of its data-matching programs, including the lifestyle asset data-matching initiative. From 2023 to 2026, the ATO will acquire data from insurance providers for assets valued at or above certain thresholds.

The assets and corresponding thresholds include:

Caravans/Motorhomes: $65,000
Motor Vehicles (cars, trucks, motorcycles): $65,000
Thoroughbred Horses: $65,000
Fine Art: $100,000
Marine Vessels: $100,000
Aircraft: $150,000

Some of the tax risks that the ATO is keen to address are the omission or incorrect reporting of income and/or capital gains, incorrect claiming of GST credits, omitted or incorrect reporting of FBT and use of assets by self-managed super funds (SMSFs) in breach of the law.

Please do not hesitate to contact us if you have any queries in relation to your tax and accounting matters.