[Podcast] The ATO’s Watchlist: A Guide for Australian Property Investors, with Ken Raiss

The Australian Taxation Office is ramping up its efforts to recoup an estimated $9 billion revenue deficit, and they're pulling out all the stops.

• Innovative strategies? Check.
• New alliances with asset managers and banks? Check.
• Advanced technologies to scrutinize investment loans and asset sales? Double check.

If you're an investor in Australian property, this is your call to be vigilant and informed.

Today, I’m joined by Ken Raiss, director of Metropole Wealth Advisory who’s here to guide you through the treacherous waters of this new tax landscape.

Areas that I think will be closely monitored by the ATO:

1. Capital gains, particularly in regard to:
   • Taxpayers who claim a full CGT exemption while renting part of their main residence
   • ensuring that investors do not falsely claim the main residence exemption
   • Cryptocurrency gains
2. Trusts on Notice, including complex ownership structures and family trusts
   • Particularly those that distribute to adult children in lower tax brackets
3. Work-From-Home Deductions
   • A newly introduced fixed rate of 67 cents per hour now applies to cover energy, phone, internet, and stationary expenses.
4. Property Investment Deduction
   • The ATO will use data matching with mortgage lenders to verify claims on returns from investment properties and holiday homes.
   • They’re looking for excessive interest expense claims, improper income and expense apportionment between joint owners, and unfounded claims for recently purchased rental properties.
5. Interest expenses – the purpose of the loan determines deductibility
   • Interest on a loan for investment purposes can be claimed, but interest on loans used for private purposes cannot
6. Property Development and Renovations
   • Profits from these activities may be considered as business income, rather than a capital gain, meaning they are fully taxable.
7. Overseas investments
   • Income from investments in property or other investments made overseas must be reported to the ATO.
8. Side hustles
   • ATO assistant commissioner Tim Loh said if you earned money through continuous and repeated activities for the purpose of making a profit, then it was likely you were running a business.

Good record-keeping and staying informed about tax obligations have always been important factors, but due to increased ATO oversight, it’s become more important than ever.

Investors should have a team of experts around them to help keep them on the right path.

Links and Resources:

Ken Raiss, director Metropole Wealth Advisory

Have a chat with Ken Raiss to ensure you have the correct asset protection strategies in place – click here

In turbulent times like we’re experiencing why not get the team at Metropole on your side to give you holistic property and wealth advice– find out more here

Why not get your bundle of E books and resource is as a is my gift for subscribing to this podcast   www.PodcastBonus.com.au

Some of our favourite quotes from the show:

“We’re not suggesting in any way that one should be avoiding tax, that’s not the case at all. What we’re saying is be careful that you’ve got all your Is dotted and your Ts crossed.” – Michael Yardney

https://thebookonpropertyinvestment.com.au/

“You have set up your structures correctly before you even start.” – Michael Yardney

“I’ve found generally speaking that people live their lives in one of two ways: either happily and successfully, or miserably with loads of regrets about what could have happened.” – Michael Yardney

PLEASE LEAVE US A REVIEW

Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how