Showcase of 2024 tax time products
The Australian Taxation Office (ATO) presented a range of education and communication products including public advice and mail outs. Members were invited to share how they use these products including practitioners and how their clients will respond to them.
The presentation included links to all the tools and guidance material that will be part of the help file in the 2024 myTax instructions, available from 1 July.
Members discussed the consultation questions below:
- What are some of the more difficult conversations you need to have with investors around their rental investments?
- Do our online tools and guidance adequately support you in having these conversations?
- Feedback was welcomed on the draft lodgment checklist.
- Forward planning – any ideas for tools and support we can develop to add to our plan?
- Any ideas on other channels we can use to get messages across?
- Do you see any opportunities for changes to keep up with modern property investing arrangements?
Member comments
- Repairs and maintenance related matters can be challenging, and misconceptions over what can be instantly written off.
- When there is a change in tenants, repairs and maintenance are often carried out at that time. Members recognised this was a good time to remind clients of obligations to get the right information about the works completed from the contractor.
- Guidance such as the tax time toolkit supports client conversations, and the Rentals guide was identified as an effective resource.
- Providing as many examples as possible is useful, supported by an easy way to locate them on ato.gov.au would greatly assist.
- The explanation of replacing in ‘entirety’ contained in Taxation Ruling TR 97/23 Income tax: deductions for repairs was thorough, however the content on ato.gov.au could be more comprehensive.
- Some members would prefer a comprehensive checklist with everything in it than a shorter one and would find it useful in client conversations. Other members preferred an uncomplicated checklist that links to further detail.
- Guidance on gardening and landscaping expenses, and guidance for tradespeople as to what to include into their invoices for repairs would be helpful.
- Clients don’t always seek tax advice prior to purchasing an investment, impacting on the ability to provide advice.
- Member ideas on channels to include messaging, and ideas on changes to keep up with modern property investment arrangements were captured by the working group lead for further consideration.
Repairs versus capital presentation
The ATO provided an outline of where public advice and guidance on the repairs and maintenance versus capital distinction can be found, and common themes in private ruling applications.
Members discussed the consultation questions below:
- Are current topic examples in our public advice and guidance on point? Are there enough examples cited and are they the type of arrangements members are seeing?
- Are they easy to find and apply?
Member comments
- A range of examples relating to the things that could be repairs, maintenance, or capital to highlight the tipping point and timing issues.
- Examples that explore the impact of body corporate involvement, for example use of sinking funds.
- Guidance around the part use of home for a taxable purpose, and, on the replacement of outdated materials with something modern.
- The rentals page on ato.gov.au needs clearer navigation, members couldn’t find it and thought there was no one spot to find all the rental properties content.
- Some of the communication did not appeal to younger tax practitioners, shorter format videos are appealing.
- Private rulings are viewed as cost prohibitive and take time, practitioners would prefer to have guidance rather than needing to do requests.