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ATO cracks down on holiday homes

The ATO is targeting holiday-home owners who are over-claiming on tax deductions for periods when their property isn’t being leased.

Some owners have been rejecting tenants so that their holiday home is available for them to use. They provide their accountants with authority to rent documents to make it appear that they are trying to rent the house. They then use the tax deduction to claim ongoing property maintenance costs to upkeep it for potential tenants.

For example, an investor rented out their holiday home to friends and family at a lower-than-market rate and tried to claim a deduction.

The ATO has risk detection models in place to alert them when taxpayers have unusual rental income and deduction patterns compared to taxpayers with properties in similar locations. The tax office is advising investors to keep thorough records and only claim on a deduction when they have made a reasonable effort to get tenants in their holiday home.

Posted on 1 June '15 by , under Tax.

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The ATO reported that 45% of working Australians were not aware that they had multiple super accounts in 2016. Having multiple super accounts is particularly common for individuals who have had more than one job. If this is you, it is important to identify and manage your super accounts because having more than one can be costly as a result of account fees from multiple funds.To combat this, you may want to consolidate your super, which moves all your super into one account. Not only does this save on fees, but it also makes your super easier to manage and keep track of.

Before consolidating your super, it is important to do the following:

Research your funds' policy
Compare your active super accounts so you can make the right choice about which one you should close. Things to assess include:

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Check employer contributions
Changing funds may affect how much your employer contributes, as some employers contribute more to certain funds. Check your current accounts to see if changing funds will affect this. Once you have selected a super fund, regardless of whether you choose a new super fund or one of your existing ones, provide your employer with the details they need to pay super into your selected account.

Gather the relevant information
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