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Online accommodation providers to be data matched

Stewart, Tracy & Mylon • Aug 16, 2018

WHAT THE TAX?!!
Online accommodation providers to be data matched  

A Commonwealth Gazette notice has been issued stating that the ATO intends to collect data of individuals renting a premises via online accommodation websites.

These services are usually run via a platform, and data will be released for the 2016/17 to 2019/20 income years. Electronic data will be linked against Australian financial institution data to provide information regarding individual taxpayers to the ATO.

In particular, the online platform will be required to submit the following data relating to the listed accommodation:

             • Name of owners

             • Addresses (both rental property and residential)

             • Date of birth

             • Contact details, and

             • Whether the entire premises or part was listed.

Also, the listing's bank account details will be provided as well. It is understood that the ATO will be able to match this bank account to an individual's tax file number. Generally, a tax file number is requested upon opening any bank account.

The activities of the listing from the online accommodation platform that will be made available include:

             • number of nights booked

             • price per night

             • cancellations

             • "blocked-out" dates, and

             • gross rental income.

Risk mitigation steps

The objectives of the data matching program are based around promoting voluntary compliance of short-term rental income.

Clients need to be made aware that this information will be directly data matched going forward. This correspondence is necessary even if you have specific questions you ask your clients about whether they receive income from these sources.

Principal place of residence

If a client uses their principal place of residence for short-term accommodation, there is:

             • a requirement to declare income received, and

             • also a potential for capital gains event to apply on the eventual sale.

ITAA 1997 s 118-185 states that only a partial main residence exemption will apply should the property be used for income-producing purposes during the ownership period.

Rental properties

For properties that are not the main residence of the taxpayer, the ATO is making various investigations surrounding the listing dates from each provider. Therefore, the ATO is able to hypothesise the length of time in which the property in question was listed as "available for rent". The timing of when a property is available for rent is important from an income tax perspective.

Voluntary disclosure

Certain clients may not have been aware that these types of items were taxable in the past. As a result, an opportunity exists to amend previous year's returns as necessary.

In various protocols issued by the Commissioner of Taxation, individuals making voluntary disclosures in order to become compliant with the law are looked favourably upon. Generally speaking, individuals are not penalised when they are co-operative with the Commissioner.

Information sourced using CCH iknow

 

By Stewart, Tracy & Mylon 01 Apr, 2021
WHAT THE TAX?!! Shortcut to claiming work-from-home deductions in 2021 The ATO has reminded taxpayers about the temporary shortcut method still available to those claiming working from home deductions this year. Taxpayers that opt to use the shortcut can claim a rate of 80 cents per work hour at home for all working from home expenses. The temporary shortcut method can be used by multiple people living under the same roof and, unlike existing methods, does not require a dedicated work area. The shortcut is all-inclusive, meaning taxpayers cannot claim expenses under the shortcut method and then claim for individual expenses such as telephone and internet costs. The alternative existing methods are also available for a taxpayer to either: • claim a rate of 52 cents per work hour at home for the heating, cooling, lighting and cleaning of their dedicated work area and the decline in value of office furniture and furnishings; then calculate the work-related portion of their telephone and internet expenses, computer consumables, stationery and the decline in value of a computer, laptop or similar device, or • claim the actual work-related portion of all running expenses, which needs to be calculated on a reasonable basis. Irrespective of the method used taxpayers cannot claim: • personal expenses that are not directly related to earning income • expenses related to children's education • assets that cost over $300; these claims should be spread out over a number of years, and • occupancy expenses such as rent, mortgage interest, property insurance, land taxes and rates. All claims require the taxpayer to have not been reimbursed for money spent, the expense must be directly related to earning income, and the taxpayer must have kept the necessary records. Information sourced using CCH iknow
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