At Tribel Accountants and Business Advisors, we aim to keep you informed about crucial developments that may impact your financial obligations. The Australian Taxation Office (ATO) is intensifying its scrutiny of high-value assets and their correct reporting. This means both businesses and individuals should be vigilant to avoid potential pitfalls.
The ATO is particularly keen on identifying assets that are either accumulated or improved but necessarily matching up with reported income in income tax returns. Additionally, there is a focus on those disposing of assets without declaring the income and/or capital gains, incorrectly claiming GST credits, and, importantly, misreporting fringe benefits tax (FBT). This is especially critical where assets owned by a business are used for personal purposes.
The scope of the data being collected is extensive. It includes not just the personal details of the policyholder but also the specifics of the policy itself, such as purchase price, identification details, and primary use, among other factors. Here are some key categories of assets under the ATO’s microscope:
- Aircraft: Valued at $150,000 or more.
- Marine vessels: Valued at $100,000 or more.
- Fine art: Valued at $100,000 per item or more.
- Thoroughbred horses: Valued at $65,000 or more.
- Motor vehicles: Including cars, trucks, and motorcycles valued at $65,000 or more.
- Caravans and motorhomes: Valued at $65,000 or more.
The ATO is leveraging data from insurance providers to identify and cross-reference the ownership of these expensive lifestyle assets. This approach ensures a broad and accurate capture of high-value items that may be underreported.
As always, our team at Tribel Accountants and Business Advisors is here to help you navigate these requirements. Ensuring your compliance with ATO regulations can save you from significant penalties and keep your financial goals on track. If you have any questions or need further assistance, please don’t hesitate to contact us.
