The ATO has announced that it is increasing its focus on rental property deductions and is encouraging all rental owners to double-check their claims before lodging their tax return.

The ATO is paying particular attention to excessive deductions claimed for rental properties, especially those located in popular holiday destinations around Australia.

Assistant Deputy Commissioner Adam Kendrick said

“We know that it can sometimes be challenging for rental property owners to work out what deductions they can and cannot claim on their holiday homes”.

“As part of our prevention before correction approach we are sending letters to taxpayers in approximately 500 postcodes across Australia, reminding them to only claim the deductions they are entitled to, for the periods the holiday home is rented out or is genuinely available for rent,”