ATO on property investments

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The ATO has reminded taxpayers in a property business or thinking about investing in property that there are things they should know, such as:

  •  hey need a clearance certificate from the supplier when buying property over $750,000;
  • they may have to pay the GST on the sale of brand new residential property separately to the ATO; and
  • income from property activities could increase their total business turnover.

The ATO says taxpayers with property should keep accurate and complete records where they:

  •  rent it out as a residential property (even short-term through the sharing economy);
  • flip houses; and/or
  • build a new house to sell for a profit.

In addition, when it’s time to lodge, taxpayers should remember:

  • Some expenses need to be claimed over time.
  • It is only possible to claim expenses for:

–    periods when the property is genuinely available for rent; and

–    travel related to renting property, if the taxpayer is in the business of letting properties.

Coronavirus: Government announces new tax measures

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  • From Thursday 12 March 2020, the instant asset write-off threshold has been increased from $30,000 (for businesses with an aggregated turnover of less than $50 million) to $150,000 (for businesses with an aggregated turnover of less than $500 million) until 30 June 2020.
  • A time-limited 15-month investment incentive (through to 30 June 2021) which will operate to accelerate certain depreciation deductions.
  • Small and medium-sized businesses (and not-for-profit entities), with an aggregated annual turnover of less than $50 million that employ people, may be eligible to receive a total payment of up to $100,000 (with a minimum total payment of $20,000), based on their PAYG withholding obligations.
  • A new ‘JobKeeper Payment’ will be available to assist eligible employers (and self-employed individuals) who have been impacted by the Coronavirus pandemic to continue to pay their workers. Eligible employers will be able to claim a subsidy of $1,500 per fortnight, per eligible employee, from 30 March 2020 (with payments commencing from the first week of May 2020), for a maximum period of six months.