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ATO targets rental property owners

The Tax Office is focusing on rental property owners this tax time and is encouraging rental owners to understand their obligations and check their claims are right before lodging their tax returns.

The ATO will be paying close attention to excessive interest expense claims and incorrect apportionment of rental income and expenses between owners.

The Tax Office will also be targeting holiday homes that are not genuinely available for rent and incorrect claims for newly purchased rental properties.

To avoid incorrect property claims, rental property owners need to ensure all rental income is included when claiming deductions and that property was genuinely available for rent when the expense was incurred.

Rental owners must make sure they apportion any deductions to take any private use into account and keep records for the claims made. The ATO’s use of sophisticated technology and data matching has amplified the Tax Office’s ability to identify incorrect rental property claims.

Posted on 15 June '16 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:

  • Exit fees
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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
When consolidating your super, you will need to have the following details ready:

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  • Your fund's superannuation product identification number (SPIN).
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