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Own an investment property or an expensive lifestyle asset like a boat or aircraft? The ATO will be looking at you.
Data from insurance providers is being used to identify and cross reference the ownership of expensive lifestyle assets. Included in the mix are:
• Caravans and motorhomes valued at $65,000 or
over;
• Motor vehicles including cars & trucks and
motorcycles valued at $65,000 or over;
• Thoroughbred horses valued at $65,000 or over;
• Fine art valued at $100,000 per item or over;
• Marine vessels valued at $100,000 or over; and
• Aircraft valued at $150,000 or over.
The ATO is looking for those accumulating or improving assets and not reporting these in their income tax return, disposing of assets and not declaring the income and/or capital gains, incorrectly claiming GST credits, and importantly, omitted or incorrect fringe benefits tax (FBT) reporting where the assets are held by a business but used personally. The level of data matching is becoming more and more targeted.
For most individuals, you may not be aware that you must pay capital gains tax on personal use assets such as boats and other assets that cost more than $10,000 to acquire. Luckily for individuals this does not include assets such as your main residence or motor vehicle unless they are used at any point to generate income or as a business asset.
Read our newsletter to find out more about how data matching may affect you.
If you have any queries or concerns about the sale or acquisition of lifestyle assets, get in contact with us!
Kerrily and Louise – Directors
