The 5 items that could bring you under ATO crackdown
The Australian Taxation Office has launched a new crackdown on Australians with a specific group of “lifestyle assets”.
More than 30 insurance companies have been asked to hand over information on Australian taxpayers who own items such as yachts, fine art, thoroughbred horses, private planes and luxury vehicles.
The investigation will see the ATO receive financial information on 350,000 taxpayers since mid-2015 as part of the agency’s data-matching protocols.
“If a taxpayer is reporting a taxable income of $70,000 to us but we know they own a $3 million yacht then this is likely to raise some red flags,” ATO deputy commissioner Deborah Jenkins said on Wednesday.
She said the crackdown is aimed at ensuring that Australians are paying their share of tax for the community.
“Regardless of your level of wealth, we all need to pay the correct amount of tax,” Jenkins said.
“Doing things like being untruthful about your income or failing to declare capital gains is effectively stealing from the community.
“This is money the community is missing out on to pay for infrastructure and services we all rely on like schools, hospitals, and roads.”
Those who were found to claim GST credits incorrectly will be asked to make full repayment along with any applicable interest and penalties.
Self-managed super funds and undeclared capital gains on the disposal of certain assets will also be examined.
People who suspect they have failed to comply with their tax or superannuation obligations will be given reduced penalties and interest charges if they turn themselves in.
Insurers have been ordered to provide information on assets at or above the below thresholds:
- Marine vessels: $100,000
- Motor vehicles: $65,000
- Thoroughbred horses: $65,000
- Fine art: $100,000 per item
- Aircraft: $150,000