Property investors beware: new data matching program
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Individual property investors should be aware that the Australian Taxation Office (ATO) has announced a new data matching program that will obtain data from various financial institutions for the 2021–2022 to 2025–2026 income years
Records relating to approximately 1.7 million individuals will be obtained each financial year and used to identify relevant cases for administrative action, including compliance activities and education strategies.
Recent results of sample audits across individuals conducted under the ATO’s random enquiry program appeared to show a net tax gap of $9 billion for the 2020 income year, with the incorrect reporting of rental property income and expenses being a significant driver of the gap. Specifically, the estimated net tax gap for rental property expenses contributed around $1 billion or 14% of the total individuals gap, with a common driver being the incorrect apportioning of loan interest costs where the loan was refinanced or redrawn for private purposes. Many taxpayers believe that interest deductibility follows the loan security, but it follows the purpose (potentially of every transaction on the loan).
The data providers for the new program include the big four banks (ANZ, Commonwealth, Westpac and NAB), as well as other providers and their subsidiaries, including Adelaide Bank, Bank of Queensland, Bendigo Bank, Bankwest, ING, Macquarie Bank, Suncorp, RAMS, Ubank, St George, Bank of South Australia, Bank of Melbourne and ME Bank. The ATO will be the matching agency and the sole user of the data.
According to the ATO, after a return is lodged, it will use the data collected to identify relevant cases for administrative action including compliance activities and education strategies. If a discrepancy is identified, taxpayers will be contacted by phone, letter or email, and will then have 28 days to respond.
The ATO will also use the data to gain insights to help develop and implement treatment strategies to improve voluntary compliance. The data may also be made available to individual self-preparers through myTax, specifically the rental property schedule interest on loans and/or borrowing expense labels and rental income tax return labels.
Philippa commenced work at McKinnon & Co in 1982. In her spare time she enjoys looking after her beef cattle enterprise, equestrian activities, and spending time with family.
Stephen Klaproth
Senior Accountant
Education: Bachelor of Commerce – Major Accounting & Finance, USQ.
Qualifications: CA
Stephen works in our business services areas as well as assisting with Audits. On the weekend he enjoys the Tablelands outdoor lifestyle.
Chloe Bidner
Senior Accountant
Education: Bachelor of Business – Major Accounting, JCU.
Qualifications: CPA, Xero Advisor Certified.
Chloe works part time at McKinnon & Co predominantly in Business Services. When she is not at McKinnons, she works in her family business – FNQ Honey & Bees
Margaret Blakey
Senior Accountant
Education: Diploma of Financial Planning (Financial Services)
Qualifications: JP
Margaret commenced accounting in 1990, and has experience in the accounting, finance, banking and financial services sectors. In her spare time, she competes in dance sport ballroom dancing, as well as spending time with her family.
Leanne Johnston
Accountant. Manager of BAS, Payroll & Bookkeeping Department.
Education: Bachelor of Business – Major Accounting, USQ.
Qualifications: Xero Advisor Certified. Diploma In Accounting.
Leanne has recently completed her accounting degree and is looking to expand her knowledge with further study. In her spare time, she enjoys horse riding and planning travel adventures.
Valerie Orreal
Manager of SMSF Department.
Education: Bachelor of Science, JCU
Qualifications: Diploma of Family History
Valerie looks after all aspects of SMSFs. In her spare time, she enjoys reading, camping and beach trips.
Alison Richardson
Client Service Assistant
Alison started at McKinnon’s back in 1981 and is our longest serving employee, providing integral support to the office and our clients. She loves spending time with her family and spoiling her grandchildren.
Rebecca Setford
Receptionist
Bec helps manage the day-to-day operations of our front office. She enjoys working hard and learning new skills. Outside of work she is a keen gym enthusiast.
Georgia Barbagallo
Receptionist
Our newest team member Georgia is enjoying learning the running of our front office. She is also studying Education and enjoys spending time with her adorable sausage dogs.
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This Personal Information is obtained in many ways including correspondence, by telephone and facsimile, by email, via our website www.mckinnonandco.com.au, from your website, from media and publications, from other publicly available sources, from cookies and from third parties. We don't guarantee website links or policy of authorised third parties.
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