Property and ‘lifestyle’ assets in the spotlight
Own an investment property or an expensive lifestyle asset like a boat or aircraft? The ATO are looking closely at these assets to see if what has been declared in tax returns matches up.
ATO Focus on Investment Properties and High-Value Lifestyle Assets.
The ATO has launched two new data-matching programs, targeting investment property owners and those with high-value lifestyle assets like boats and aircraft. These efforts aim to ensure accurate tax reporting and compliance.
Investment Property Focus
The ATO has been consistently scrutinising what investment property owners declare in their personal income tax returns. This latest program collects data from property management software covering the 2018-19 to 2025-26 financial years.
Key data includes property owner identification, property details, and transaction information. Since 1 July 2016, the ATO has also been collecting property transfer data from state and territory governments. The ATO’s focus is on those who fail to lodge rental property schedules, misreport rental income or deductions, or omit capital gains tax (CGT) details.
Lifestyle Assets Under Scrutiny
The ATO is also using data from insurance providers to verify ownership of high-value lifestyle assets, including:
> Motorhomes, vehicles, and motorcycles valued at $65,000+
> Thoroughbred horses valued at $65,000+
> Fine art valued at $100,000+ per item
> Marine vessels valued at $100,000+
> Aircraft valued at $150,000+
The ATO collects details like the owner’s identity, asset value, and usage. They are targeting those who fail to report asset acquisitions or improvements, neglect to declare income or capital gains from disposals, incorrectly claim GST credits, or omit fringe benefits tax (FBT) when assets are used personally but held by a business.
These programs highlight the ATO’s commitment to ensuring accurate reporting and compliance in both property investments and lifestyle asset ownership.
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