THE ATO CRACKING DOWN ON PROPERTY
The ATO are claiming to crack down on property in 2016, investigating on compliance. One of their focuses is on home owners putting their second and third properties on Air BnB and ensuring that there are no deductions being made from the property when there are no long term tenants. We believe Air BnB is a great way to bring life into a property that often loses its value, this way home owners can spruce up a property, enough so someone can stay and make a profit it from it.
What the home owners don't realise is, in the long term, this property will accumulate more money in the property market and that the tweaks the home owner makes to the property all follows with a tax when they decide to sell. So while the ATO allow's Air BnB as a venture, be careful as you may be paying more tax than you ever would've expected at the finish line.