Daily Buzz: Thursday, 28 March
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PropertyBuzz, your daily dose of property news.
ATO declares a crackdown on property valuations, CPI stays stable, and should the government step in on short term rentals?
Welcome to Property Buzz! I’m Grace Ormsby
Today is Thursday, 28 March.
And the Australian Taxation Office is currently investigating over 16,500 SMSFs for potentially failing to comply with asset valuation regulations across residential and commercial properties.
They are targeting assets that have been reported at the same value across at least three consecutive income years.
The ATO is emphasising the importance of trustees valuing their fund’s assets at market value annually and providing evidence of this to their auditors.
Failure to comply could result in additional taxes and penalties for the funds and their members.
The latest Consumer Price Index shows a 3.4 per cent rise in the value of goods across the 12 months to February 2024, the same result as the two months prior.
– Housing and rents, have been identified as significant contributors to the current inflationary pressure, with rents increasing by 7.6 per cent in the year to February.
According to the Real Estate Institute of Australia, cash rate relief is likely to come later this year, although Master builders does warn that more supply will be vital in further reducing inflation pressures.
And Seiko Ma, managing director of Alice’s Home, argues against increased restrictions on short-term rental accommodation (STRA), citing potential negative impacts on tourism and innovation.
– Alice’s Home suggests limiting short term rental accommodation would not consistently affect affordability across Australia, but could deter investment and industry growth.
– She warns that changes in New South Wales could make Australia’s largest tourism market resistant to innovation, and other states may follow, spreading this stance nationwide.
– Ma also highlights the significant differences between properties suitable for short-term and long-term rentals.
That’s Property Buzz for today.
See you again tomorrow, 29 March, for your daily dose of Property Buzz.
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