Australia has seen a huge surge in property owners renting their house or rooms out via the likes of the hugely popular Airbnb app. As a result, the ATO are now going to gain access to data match these online platforms.
As we have covered in many articles, the tax consequences of renting your property (whether it be a room or the entire house) are sometimes not taken into full consideration by individuals. Advertising and mainstream media have often reported favourably on renting through the likes of Airbnb, how easy it is to do, earn a little extra cash….etc. Unfortunately, they generally forget to mention the implications it can have on CGT when the time comes to sell the property.
The ATO have decided to pursue potential lost revenue by lodging their intention to collect data to identify individuals who have or may be engaged in providing accommodation services through an online platform during the 2016 to 2019/20 financial years. Data collected will include all payments made by the platforms to accommodation providers, including those made by international entities. The data will then assist the ATO to identify taxpayers who have failed to declare income and/or the adjustments for CGT on sales of properties that have been rented during this period.
For more information, please contact Paris Financial on 03 8393 1000.