realestatebusiness logo
Subscribe to our newsletter SIGN UP

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

rpm logo latest

Audit protection to shield investors from ATO scrutiny

28 August 2014 Staff Reporter

With the Australian Taxation Office (ATO) cracking down on investors, an insurance expert has suggested property managers could help landlords by paying property-related expenses such as rates and repairs directly.

RentCover landlord insurance general manager Sharon Fox-Slater said it was important for investors to make sure their affairs were in order given the highly complex tax rules around investment properties.

“Prevention is better than a cure when it comes to tax – investors need to keep accurate records and carefully research the deductions they are entitled to claim,” she said.

“If they do that, then audit should be quite straight forward.”


Ms Fox-Slater also suggested that property managers could help by encouraging landlords to allow them to pay property-related expenses such as rates and repairs directly.

“This can be a tremendous help when the landlord is preparing their tax, since it gives them an annual expense statement with most of the potential deductions recorded in one place,” she said.

Ms Fox-Slater said that investors with a number of investment properties, or those using unusual ownership structures, could consider taking out extra audit insurance.

Areas where the property investors can go wrong when it comes to tax time include confusing “repairs” with “improvements”, capital gains tax, combining travel to inspect properties with holidays, and claiming interest deductions for periods when the property is not available for rent, so it's important to get advice from a taxation specialist, according to RentCover.

“If the Australian Taxation Office comes calling on one of your landlords, it is worth reminding them to check their landlord insurance – some quality policies include cover for professional fees to help prepare for tax audit,” it said.


Audit protection to shield investors from ATO scrutiny
lawyersweekly logo
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast

Why we’ll keep delivering for our communities in the face of COVID-19


As Australia tries to keep pace with a rapidly changing business and social landscape in the wake of COVID-19, Momentum Media is leading the way delivering essential content to our communities, writes Alex Whitlock, director of REB.

Read more
Do you have an industry update?
Ensure you never miss an issue of the Real Estate Business Bulletin. Enter your email to receive the latest real estate advice and tools to help you sell.