Property investors beware: new data matching program
Share this article:
Individual property investors should be aware that the Australian Taxation Office (ATO) has announced a new data matching program that will obtain data from various financial institutions for the 2021–2022 to 2025–2026 income years
Records relating to approximately 1.7 million individuals will be obtained each financial year and used to identify relevant cases for administrative action, including compliance activities and education strategies.
Recent results of sample audits across individuals conducted under the ATO’s random enquiry program appeared to show a net tax gap of $9 billion for the 2020 income year, with the incorrect reporting of rental property income and expenses being a significant driver of the gap. Specifically, the estimated net tax gap for rental property expenses contributed around $1 billion or 14% of the total individuals gap, with a common driver being the incorrect apportioning of loan interest costs where the loan was refinanced or redrawn for private purposes. Many taxpayers believe that interest deductibility follows the loan security, but it follows the purpose (potentially of every transaction on the loan).
The data providers for the new program include the big four banks (ANZ, Commonwealth, Westpac and NAB), as well as other providers and their subsidiaries, including Adelaide Bank, Bank of Queensland, Bendigo Bank, Bankwest, ING, Macquarie Bank, Suncorp, RAMS, Ubank, St George, Bank of South Australia, Bank of Melbourne and ME Bank. The ATO will be the matching agency and the sole user of the data.
According to the ATO, after a return is lodged, it will use the data collected to identify relevant cases for administrative action including compliance activities and education strategies. If a discrepancy is identified, taxpayers will be contacted by phone, letter or email, and will then have 28 days to respond.
The ATO will also use the data to gain insights to help develop and implement treatment strategies to improve voluntary compliance. The data may also be made available to individual self-preparers through myTax, specifically the rental property schedule interest on loans and/or borrowing expense labels and rental income tax return labels.
Louise is a CPA with a Masters in Professional Accounting and a diploma of Financial Planning. Louise has been in Public Practice for 21 years and has been the principal of LMC since 2012. With a focus on small business support services and self-managed super funds, Louise is passionate about helping small businesses achieve their potential through good cashflow management and strategies for success. Louise and her family enjoy the space and tranquility of the Noosa hinterland with a small acreage block complete with dogs, chickens, geese, ducks and donkeys!
Lesley is our individual taxation specialist and has over 23 years experience in preparing individual and small business returns. Lesley loves country music and line dancing and having recently relocated closer to the coast, enjoys a walk along the beach. Lesley is a proud Nana to her 14 grandchildren.
Suzanne is our Client Service Coordinator. She has worked in accounting practices for 20+ years and has expert knowledge in all things relating to Corporate Compliance. She is an active local community volunteer. In her leisure time she enjoys wandering in ancient places and reading biographies.
Kristie has recently joined LMC Financial Group in Office Administration and Reception. She has run her own interior design small business for 20 years and when she is not at LMC she continues to work with clients on the Sunshine Coast. Our new office space has been designed by Kristie and Louise and brings a fresh warm approach to accounting in Cooroy.
Kelly has qualifications in accounting and bookkeeping and has over 20 years’ experience in these areas. Kelly is a local to the beautiful sunshine coast and town of Cooroy and is ready to help with all your accounting and bookkeeping needs, nothing is too difficult. Kelly loves spending time with her family and everything the Sunshine Coast offers, we do really live in paradise.
Business Taxation Services
No client too big or too small. At LMC Accounting we make sure we get to know your business, so that we can offer you sound financial and accounting advice and the best service possible, taking care of your tax obligations in a timely and efficient manner.
Business Activity Statements and Instalment Activity Statements – preparation and lodgement.
Business Structure advice – what is the most appropriate structure for you?
Proactive Strategies Business setup and GST/ABN registration services.
Onsite visits to your business. Assistance with the most up to date accounting software options
Not For Profit – bookkeeping and annual reporting assistance
Tax planning – give yourself the opportunity to minimise tax before the 30th of June!
No client too big or too small.
We make sure we get to know your business
Business Activity Statements
Preparation and lodgement of Business Activity Statements (BAS) and Instalment Activity Statements (IAS). We can assist you with your quarterly, monthly or annual returns, reviewing your information, calculating your GST and PAYG tax liability and electronically lodging your BAS and IAS statements.
Getting the right advice on GST and tax is critical to your business. Work with one of our highly experienced and qualified agents and let us assist you in meeting your business taxation obligations.
What is the most appropriate business structure for you? We can advise you on the best structure to suit your financial needs. LMC Financial will discuss the advantages and disadvantages of each available business structure and help you to decide which business structure best suits your business model.
Starting a new business and not sure where to go or what to do first? We offer Proactive Strategies Business Setup and GST/ABN registration services.
LMC Accounting can visit your business and assist you with the most up to date accounting software options making your record keeping more streamlined for when it comes to reporting time.
Not For Profit
We offer bookkeeping and annual reporting assistance for Not for Profit organisations.
Forward planning and prior preparation is key! Contact us today and give yourself the opportunity to minimise tax before the 30th of June!
All small businesses must be built on a strong foundation of record-keeping. Without accurate information about business income and expenses, it is not possible to effectively plan, grow or sell a business.
We offer many options to suit various budgets and various sized businesses. We use all major accounting software providers so if you have a preference, that is fine too.
Cloud-based accounting software is a great way of keeping your business records up to date, easily accessible and at an affordable price – talk to us about your options today.
Tax & Reporting
Every small business has tax and reporting obligations every year, every quarter and even every month or week (think Single Touch Payroll!).
We can make sure your compliance is up to date and your reporting obligations are met in full and on time. Stress less and focus more on your business while we do what we do best – accounting!
We also provide comprehensive tax planning analysis so we can assist you to effectively plan for any tax issues.
It is important to have good bookkeeping processes in place and be compliant with tax office obligations, but you also need to know if your small business is or will be profitable. Otherwise what is the point!
Let us help you examine where your business is at and create a Profit Plan to clearly identify your income goals, realistic expenditure items and potential profit-making opportunities as well as highlight any financial hurdles that may be in your way.
It is time to create real profit in your small business, real cash in a real bank account that you can spend without feeling guilty!
Knowing where your money is going and how much you actually have to spend at any point in time is a game-changer when it comes to creating real profit. We can assist you to put the processes in place to effectively manage your cashflow once and for all so that you never have to worry about that next BAS payment or super liability and at the same time, build real profit into your business.
Put your Profit First, not last and you will ensure that your business works for you not the other way around.
Growth & Equity
Your business is an asset and if you can ensure that your small business asset has value then you have an asset you can sell.
Imagine someone paying you for your business that you may have built from the ground up? All that time, money and energy is now being returned to you because you have created value in your business.
Learn how to create that value, ensure you have the processes in place so that you can spend time on your business not in your business and watch your business grow.
Let LMC Accounting and Financial Services, Noosa, help you to decide if a self managed super fund is right for you and your financial circumstances. Setting up a DIY super fund can be a really straightforward process but it needs to be set up properly right from the start.
Do you want to simplify your Super Fund but don’t quite know where to begin. With support from us at LMC Accounting we can help you to make this happen, saving you unnecessary stress, time and money.
At LMC Accounting we make sure you understand all of your Self Managed Super Funds options and obligations as well as advice regarding rules, regulations and investments.
Have you thought about your retirement years? Are you concerned you may not have done enough preparation to live comfortably in your twilight years? The sooner you put plans in place, the greater benefits you will have in the long run.
We offer reasonable rates and efficient service coupled with the best advice. Contact us to find out how we can help you with your Super Fund requirements and planning for your future.
Do you want to simplify your Super?
Have you thought about your retirement? Are you concerned about your retirement?
SMSF set up – is it right for you? Do you know what options are available?
SMSF Accounting and administration advice
Advice regarding rules, regulations and investments
Secure File Transfer is a facility that allows the safe and secure exchange of confidential files or documents between you and us.
Email is very convenient in our business world, there is no doubting that. However email messages and attachments can be intercepted by third parties, putting your privacy and identity at risk if used to send confidential files or documents. Secure File Transfer eliminates this risk.
Login to Secure File Transfer, or contact us if you require a username and password.
Terms & Conditions
1. noosaaccounting.com.au is managed by LMC Accounting and Financial Services. noosaaccounting.com.au is hosted on noosaaccounting.com.au which is managed by Louise McNeich.
3. You agree to use noosaaccounting.com.au only for lawful purposes, and in a manner that does not infringe the rights of or restrict or inhibit the use and enjoyment of noosaaccounting.com.au by any third party. This includes conduct which is unlawful or which may harass or cause distress or inconvenience to any person, the transmission of obscene or offensive content or disruption to noosaaccounting.com.au.
4. You must not post or transmit via noosaaccounting.com.au any unlawful, defamatory, obscene, offensive or scandalous material, or any material that constitutes or encourages conduct that would contravene any law.
5. Your use of noosaaccounting.com.au does not:
affect or reduce any obligation owed to You by any Agency;
reduce any obligation You owe to any Agency.
6. noosaaccounting.com.au is not a substitute for independent professional advice and you should obtain any appropriate professional advice relevant to Your particular circumstances.
7. Comments on noosaaccounting.com.au are provided by, and are the responsibility of, the person or people who made such postings. We do not endorse, support, or guarantee the truthfulness, accuracy, or reliability of any the comments posted on noosaaccounting.com.au or endorse any of the opinions expressed.
8. We take reasonable care in linking to other websites but we have no direct control over the content presented in those websites or the availability of those websites.
9. We make no representation that the material on any linked websites does not infringe the intellectual property rights or any other rights of any person. We do not authorise the reproduction of such material.
10. We do not endorse or recommend any links to external websites, or third party content, including products and services offered by, from or through those websites or their content.
11. With the exception of the Commonwealth Coat of Arms and where otherwise noted, material presented onnoosaaccounting.com.au is provided under a Creative Commons Attribution 2.5 Australia licence.
12. The development and management of noosaaccounting.com.au is coordinated by us, however some interactions with noosaaccounting.com.au occur on systems under the control of third parties.
13. The Department of Finance and Deregulation is responsible for the security of information while it is collected by, stored on or passing through the noosaaccounting.com.au system.
14. We strive to protect comments and information you provide on noosaaccounting.com.au. We will use all reasonable endeavours to ensure that your comments and information are not compromised. However, we cannot guarantee that no Harmful Code will enter noosaaccounting.com.au. You should be aware of the risks associated with using websites.
15. We recommend that you use appropriate and up-to-date firewall and anti-virus software to protect your computer systems.
16. For more information about how we protect your privacy and personal information, please contact us.
17. In order to participate in, and contribute to, noosaaccounting.com.au you may be required to register and provide an email address.
18. We will only use and disclose your personal information to a person, body or other Agency:
to provide you with a service that you have requested;
as authorised by law, for example, if a law enforcement authority or court order lawfully directs us to disclose the information of a user.
22. We may revise these Terms and Conditions from time to time.
23. Please contact us if you have any questions, problems or feedback regarding our site.
Harmful Code – Any form of harmful surreptitious code or other contaminants, including viruses, bugs, trojan horses, spyware or adware.
You and Your means the user of this website and noosaaccounting.com.au.
Our, Us and We means the Commonwealth of Australia represented by LMC Accounting and Financial Services.