ATO to focus on investors and sellers this tax time.

The Australian Taxation Office (ATO) has announced its key focus areas for this tax time, and two of the four areas identified relate to property investors and sellers.


This year, the ATO will be focused on

  • rental property income and deductions, and

  • capital gains from property.


Assistant Commissioner Tim Loh said that "It’s important you rethink your claims and ensure you can satisfy the 3 golden rules”.

  1. You must have spent the money yourself and weren’t reimbursed.

  2. If the expense is for a mix of income-producing and private use, you can only claim the portion that relates to producing income.

  3. You must have a record to prove it.


See the below information from the ATO


Rental income and deductions

If you are a rental property owner, make sure you include all the income you’ve received from your rental in your tax return, including short-term rental arrangements, insurance payouts, and rental bond money you retain.


“We know a lot of rental property owners use a registered tax agent to help with their tax affairs. I encourage you to keep good records, as all rental income and deductions need to be entered manually, you can ask your registered tax agent for assistance. If we do notice a discrepancy it may delay the processing of your refund as we may contact you or your registered tax agent to correct your return. We can also ask for supporting documentation for any claim that you make after your notice of assessment issues”.


For more information visit ato.gov.au/rental


Capital gains from crypto assets, property and shares

If you dispose of an asset such as property this financial year, you will need to calculate a capital gain or capital loss and record it in your tax return.


Generally, a capital gain or capital loss is the difference between what an asset costs you and what you receive when you dispose of it.


Most property except your main residence (home) is subject to capital gains tax. This includes rental properties, holiday houses, hobby farms, vacant land, and business premises.


For more information visit ato.gov.au/capitalgains