Taxman set to target Aussies living the high life
AUSSIES who cry poor but live large will be targeted by the taxman under a plan to compare the insurance policies of yachts, fast cars and even thoroughbred horses against the official financial records.
In an attempt to determine the real wealth of those who live large, about 100,000 insurance policies will be matched against Australian Taxation Office records.
While the ATO has sought details of people who owned marine vessels in the past, it is the first time it will seek insurance policies for enthusiast motor vehicles, thoroughbred horses, fine art and aircraft where the value exceeds thresholds for the 2013-14 and 2014-15 financial years.
Policies will be triggered for marine vessels valued at more than $100,000; classic, vintage, prestige and high-performance motor vehicles of more than $65,000; thoroughbred horses of more than $65,000; aircraft of more than $150,000; and fine art, gemstones and antiques of more than $100,000.
Assistant Treasurer Kelly O’Dwyer said the Federal Government had toughened compliance to ensure that everyone paid their fair share.
“The tax rules are clear and the ATO will… initiate action where necessary,” she said.
In 2013, boats, property, cars and other luxury items worth up to $4 million were seized from 172 parents who had claimed they could not afford to pay child support or just did not want to fork out the cash for their children.
The second-highest debt belongs to Queenslanders, who are owed almost $288 million.
The Courier Mail February 21 2016