ATO Rental Data Matching Capabilities are Increasing
The Rental bond data matching protocol has recently been updated.
This data, together with third-party rental data from property managers, banks, landlord insurers and sharing economy providers gives ATO insight into the Australian rental market.
While many landlords remember to include regular rent received in their tax return, any bond money they retain is often missed.
If you are unsure or have forgotten to include any rent or bond money in your tax returns, get in touch so we can advise how to amend this.
For more information about the ATO’s data matching program, please see link below:
Does your business keep accurate and complete records? The ATO can now direct business owners to complete a record keeping course.
Legislative changes mean that the ATO can now direct business owners to complete an approved record keeping course as an alternative to a financial penalty or not keeping accurate and complete tax records.
Record keeping is an essential part of running a business. Keeping accurate and complete records for all your business transactions is not only a legal requirement, It will also help you stay on top of your business’s cash flow.
Use the ATO’s Record keeping evaluation tool to help you assess how well you are keeping your business records.
https://www.ato.gov.au/calculators-and-tools/businesses-record-keeping-evaluation
PROPERTY INVESTORS BEWARE: NEW ATO DATA MATCHING PROGRAM
Property investors should be aware that the ATO has announced the commencement of a new data matching program:
- The Program can obtain data from various financial institutions for the 2021-22 to 2025-26 income years.
- Information collected will include loan details and borrowing costs.
- Records relating to approximately 1.7 million individuals will be obtained each financial year and used to identify relevant cases for action, including compliance activities and education strategies.
If you have redrawn or refinanced your loan recently and are unsure about the tax implications, we can help you.
We advise that you contact Jack Lawrence before making any decisions.
Major Tax Changes for Australian Expatriates in the UK
A significant shift in the UK tax system could have profound implications for Australian expatriates.
The British government’s latest budget announcement introduces a pivotal change to the “non-dom” rules, potentially urging many Australians to reconsider their residency status in the UK.
Those people who currently have nom-dom status will be allowed a two-year transition period, during which they will be encouraged to bring their foreign wealth into the UK system.
Key Takeaways:
End of Negative Gearing Benefits – Australian expatriates will no longer enjoy negative gearing on their Australian properties, a move that aligns with the UK’s non-recognition of this tax minimisation strategy.
Franking Credits Lost – The benefits of franking credits on Australian shares will vanish for those residing in the UK, impacting investment returns.
Inheritance Tax Net Tightens – A proposed extension of the UK’s inheritance tax could affect Australians for a decade after they return home, significantly altering estate planning dynamics.
If you’re an Australian living in the UK understanding the implications of these tax changes is crucial.