ATO targets 'lifestyle' assets
Aspen Corporate • 27 March 2020
ATO targets 'lifestyle' assets
The ATO has requested insurance policy information from 30 insurers for lifestyle assets such as yachts, thoroughbred horses, and fine arts.
The review, expected to impact 350,000 taxpayers, reaches from the 2015-16 to 2019-20 financial years, revealing assets that previously may not have been disclosed or underreporting of income. "If a taxpayer is reporting a taxable income of $70,000 to us but we know they own a three million dollar yacht then this is likely to raise some red flags," Deputy Commissioner Deborah Jenkins said.
The ATO is looking for:
- under-reporting of income and mismatches between lifestyle assets and reported income,
- the purchase of assets in a company name but where those assets are used for private purposes (incorrect claims or non-reporting of GST credits, FBT, Division 7A, capital gains tax), and
- lifestyle assets purchased by self-managed superannuation funds that might breach the sole purpose test.
The ATO has stated that the data matching will not result in automatic audits but will be reviewed by compliance officers to support the profiling of selected taxpayers.
The superannuation guarantee rules are broad and, in some circumstances, extend beyond the definition of common law employees to some directors, contractors, entertainers, sports persons and other workers.
The amount of money that can be transferred to a tax-free retirement account will increase to $2m on 1 July 2025.
In the 2025-26 Federal Budget the Government announced a ban on non-compete clauses and “no poach” agreements.
The personal income tax rate reduction announced in the 2025-26 Federal Budget was confirmed, from 1 July 2026, personal income tax rates will change.
Aspen Corp's 2025-26 Federal Budget Update
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