ATO Focus for 2023-24 FY:

Rental properties, work claims, & CGT

The ATO was especially concerned to ensure rental property owners understood how to correctly apportion loan interest expenses where part of the loan was used for private purposes.

“You can only claim interest on a loan used to purchase a rental property to earn rental income,” Mr Loh said. “If your loan also includes a private expense, such as for a new car or a trip to Bali, you can only claim an interest deduction for the portion relating to producing your rental income.”

In addition to rental properties, the ATO will be closely examining work-related expense claims. This area has always been a focus for the ATO, as it represents a significant portion of individual taxpayers' claims. However, with the increasing prevalence of remote work and the blurred lines between personal and business expenses, the ATO aims to ensure that taxpayers are correctly apportioning their claims and not inflating deductions. Taxpayers will need to keep detailed records, such as receipts and logbooks, to substantiate their claims and be prepared to provide evidence if requested by the ATO.

Capital gains tax (CGT) is another area where the ATO will be directing its attention. With the property market experiencing significant growth in recent years, there is an increased likelihood of taxpayers making gains on the sale of their assets. The ATO will be closely monitoring these transactions to ensure that taxpayers are correctly calculating their CGT liabilities and reporting them accurately. Taxpayers should ensure they are aware of the CGT rules, including the availability of any exemptions or concessions, to avoid unintended non-compliance.

Last year’s tax crackdown on crypto has morphed into a broader concern over CGT events for a wide range of assets.

The ATO said CGT applied to any disposal of shares, managed investments, properties and, of course, crypto.

“To ensure you are meeting your obligations and paying the right amount of tax, you need to calculate a capital gain or capital loss for each asset you dispose of unless an exemption applies,” the ATO said.

To support its focus on these areas, the ATO will be leveraging data-matching technology and advanced analytics to identify patterns and anomalies. This will allow them to target specific taxpayers or industries where noncompliance is more likely. The ATO will also be conducting education campaigns to inform taxpayers about their obligations and provide guidance on how to meet their tax obligations correctly.

Don’t fall into the trap of thinking we won’t notice if you sell an asset for a gain and don’t declare it,” Mr Loh said.

It is essential for taxpayers to be proactive in understanding their tax obligations, keeping accurate records, and seeking professional advice if needed. By staying informed and compliant, taxpayers can avoid potential audits, penalties, and the associated stress and financial implications. The ATO's focus on rental properties, work claims, and capital gains tax highlights the importance of accurate reporting and demonstrates their commitment to maintaining the integrity of Australia's tax system.

(Source:https://www.ato.gov.au/Media-centre/Media-releases/In-the-

Nature

By Kayte Kitchen

This is the fifth of five publications where we have been running a series of sensory experiences in nature.

Each experience will take about 10 mins and you are encouraged to read through the instructions before you commence your time in nature to maximise your experience.

Find a spot outside where you can sit or lie down comfortably. This could be in your backyard, your local reserve or in a national park. You may like the familiarity of the same place you have practised before or you may like to try somewhere new.

Take a few moments to regulate your breathing and settle into your position. For this breathing exercise, we will follow a pattern of 4 counts in, holding for 7 and then exhaling for 8.

Follow this pattern, allow it to take all of your focus and to help you unwind. Repeat for a few minutes.

Allow your breathing to find its natural rhythm once more.

For the next 5 mins we are going to practise tuning into all of our senses while we do a slow walk. You may only move a few metres within the 5 mins, the point of the exercise being to tune in to your senses of sight, smell, hearing and feeling as you go. Draw your attention to the details, get in close to nature, take time to experience the full experience of each moment.

You are trying to slow down your senses, slow down your experience. Try not to allow distractions to come into your mind, be fully present to the experience. If you do get distracted, don’t stop, just