Hot Issues
spacer
SMSFs: Our 'hardest' jobs
spacer
ASIC issues alert over big gaps in SMSF trustee knowledge
spacer
Super savings gap for women stuck at 30%
spacer
Statistics for all Australians
spacer
Super set to play bigger retirement role
spacer
Why SMSFs want estate-planning advice
spacer
The power of financial role models
spacer
Assess your retirement financial resources
spacer
Cryptocurrency audits tipped to increase this EOFY
spacer
Time to check your risk exposure?
spacer
Some general interest stats on SMSFs
spacer
Check trust deed to protect super in estate planning
spacer
Survey reveals strong opposition to retirement system changes
spacer
Australia by numbers – Update
spacer
Federal Budget 2018 – Overview
spacer
Your Budget
spacer
4 components of our 2018 Federal Budget
spacer
Tools to help you manage your financial position are available on our site.
spacer
New rules capture SMSFs trading big with cryptocurrency
spacer
Common EOFY slip-ups flagged for SMSFs
spacer
Beware residency rules if moving overseas
spacer
99 pct of SMSFs missing global opportunities
spacer
How to plan for a better retirement
spacer
Australia by numbers - Update
spacer
Determine your retirement goals
spacer
ATO issues update on cryptocurrency compliance traps
spacer
How likely is a global trade war?
spacer
Gig economy spike prompts calls for super policy changes
Article archive
spacer
Quarter 2 April - June 2018
spacer
Quarter 1 January - March 2018
spacer
Quarter 4 October - December 2017
spacer
Quarter 3 July - September 2017
spacer
Quarter 2 April - June 2017
spacer
Quarter 1 January - March 2017
spacer
Quarter 4 October - December 2016
spacer
Quarter 3 July - September 2016
spacer
Quarter 2 April - June 2016
spacer
Quarter 1 January - March 2016
Quarter 4 of, 2016 archive
spacer
Investor habits: The good, the bad and the ugly
spacer
Keeping finances in the family
spacer
The inter-generational financial squeeze
spacer
Merry Christmas for 2016, a Happy New Year and a prosperous 2017.
spacer
ATO set to clamp down on range of super issues
spacer
SME retirement plans in jeopardy, research finds
spacer
SMSFs show restraint in hot residential market
spacer
Investment's building blocks - always worth reinforcing
spacer
Warnings issued on traps with CGT transitional rules
spacer
Meet SMSFs' early and late arrivals
spacer
Beware, the ATO is on the hunt for lifestyle assets
spacer
'Brexit means Brexit' means what?
spacer
SMSFs tipped to be hardest hit by pension changes
spacer
SMSF assets hit record, but funds still hoarding cash
spacer
Markets caution advised as economic bubbles loom
spacer
Stretching retirement income
spacer
Some financial terms explained
spacer
Market Update – September 2016
spacer
Checking in on our 2016 economic outlook - and looking ahead
spacer
Making a fairer and more sustainable Superannuation System
spacer
Going undercover
spacer
‘Winners and Losers’ from new super proposals
Beware, the ATO is on the hunt for lifestyle assets

 

This tax time, it's wise to be wary of the the ATO's program aimed at identifying lifestyle assets that have not been properly accounted for or taxed.

It will be utilising data from a number of insurance companies to assess and identify the owners of these assets, allowing it to formulate an opinion on taxpayers who have reported very little taxable income in their personal tax returns but who have accumulated significant lifestyle assets. 

 

       

 

Lifestyle assets

Lifestyle assets include personal assets and collectables such as fine art, marine vessels, aircrafts, enthusiast motor vehicles and thoroughbred horses.

The ATO will review these assets for the last two financial years based on the following nominated asset threshold:

  • Marine vessels – over $100,000
  • Aircraft – over $150,000
  • Enthusiast motor vehicles – over $50,000
  • Thoroughbred horses – over $65,000
  • Fine art – over $100,000

Assets with a value below these thresholds will not be selected for review.

Information gathering

Information will be collected from a number of insurance companies including details of the insurance policy holder (i.e. names, addresses, phone numbers); and insurance policy details (i.e. policy number, policy period, asset and value insured, physical location of asset etc.).

It is estimated that more than 100,000 insurance policies will be obtained by the ATO.

The ATO will match the details on the insurance policy with the information it already holds on the taxpayer to identify non-compliance with registration, lodgment, reporting and payment obligations.

The data collected will be used by the ATO to better understand the assets and wealth of particular taxpayers, and allow it to identify possible compliance issues with income tax, capital gains tax, fringe benefits tax, GST and superannuation.

The ATO has stated that it considers this as an opportunity to promote voluntary compliance and strengthen community confidence in the integrity of the tax system.

Insurance providers can notify clients of their participation in this program and the documents that have been provided to the ATO.

Discrepancies in information

Where there appears to be a discrepancy, the ATO will contact taxpayers and give them the opportunity to verify the accuracy of the information prior to amending any income tax return.

It is therefore a good idea to revisit the insurance policy of any lifestyle assets owned to ensure that all the details are correct and information is correctly reported on financial statements and income tax returns.

 

Daryl Jones, HLB MANN JUDD
Tuesday, 11 October 2016
accountantsdaily.com.au