As an investment property owner, keeping up with your tax obligations can feel overwhelming, especially with recent changes to the property management data matching protocol.
This extension means that the ATO is now receiving more detailed information about your rental property, including rent and expenses.
With data coming from software providers, banks, rental bond authorities, and even sharing economy platforms, it’s easier than ever for common mistakes to be flagged.
Here are some frequent errors that the ATO has noted from property owners:
- Reporting Net Rent Instead of Gross Income
Some owners deduct expenses from their rental income and then claim those expenses again. Remember, you need to report gross income and then claim your expenses separately. - Forgetting to Include a Property
It happens! Sometimes, a rental property is left off a tax return entirely. Make sure every property you own is accounted for. - Multiple Owners, One Reporter
If your property has multiple owners, each person must report their share of the income and expenses, not just one. - Missed Rental Income on Tenanted Properties
If you buy a property with tenants and plan to move in later, don’t forget to report the rental income you received during the interim period. - Misreporting Repairs and Maintenance
There’s often confusion between repairs and larger capital works. Make sure you’re only claiming repairs, not improvements or depreciating assets.
The goal isn’t just to catch mistakes—it’s to help rental property owners like you stay on track.
Providing education and support ensures that everyone can meet their obligations, including capital gains tax (CGT) on rental properties.
If any of these issues sound familiar, now’s the time to review your tax returns and make any necessary corrections. As always, we’re here to help you get it right.
