Illawarra and South Coast holiday homes being used for Airbnbs are in the sights of the tax office.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
In the lead up to the June long weekend the ATO has warned they’re keeping a close eye on owners of holiday rental properties in popular destinations.
Aside from not declaring income at all, there’s also a trend for owners to claim too many deductions.
Illawarra Business Chamber executive director Chris Lamont said dodgy tax returns could hurt the region which is experiencing growth in holiday rentals.
“Airbnb and [Emerald and Aqua], they’re great options for this region but people need to be careful they’re submitting their tax correctly,” Mr Lamont said.
“We don’t want an unfair advantage that discourages investment in our accommodation sector which is going to be so critical to meet the demand for things like Elton John or the Crossfit Games.”
ATO assistant commissioner Kath Anderson urged owners to have accurate records of expenses and strong evidence to show the property is genuinely available for rent at normal rates.
“One taxpayer had to pay the ATO back over $45,000 in tax from deduction claims made for a holiday home they were renting out to friends and family below the market rate,” Ms Anderson said.
“Technology enhancements and extensive use of data is allowing us to identify incorrect or suspicious claims. We also have a good idea of the locations likely to be used for holiday homes.”