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CGT on Enthusiast Vehicles - Its coming
I had a discussion with an ATO contact over Easter and he was telling me about the current audit they are doing with Insurance companies on enthusiast vehicle values etc. See below.
https://www.ato.gov.au/General/Gen/M...gram-protocol/ He said they plan on doing 2 things relating to the domestic enthusiast vehicle. 1. Marry up insured value against stamp duty paid at rego to ensure defrauding wasn't occurring at the transfer stage.... (No one does that do they?) 2. As well as bringing in a capital gains tax on enthusiast vehicles, horses, art etc on any profit earnings. I said it wont happen and he retorted quickly, it already is!!! Be aware, although in the end I don't think there is much anyone can do about it. Spookypt |
Interesting to see that the program has been running "effectively" for more than 10 years already with it currently focussing (I expect) on people turning over dozens of cars per year as an unregistered business; but the changes your person is talking about are a significant change and will be interesting to administer.
Will they seek to determine how many improvements have been made to a car to take it from "as purchased" to it's "as registered or as sold" condition. Case in point - Leroy's Arntz will be infinitely more valuable once he has completed the rebuild. Does that mean he can claim repair and maintenance expenses on his "investment" in this financial year on the assumption that at some time in the future he would realise a capital gain if he ever sold the investment? If a replacement pool pump on an investment property is a claimable expense, is an air pump on top of the manifold similarly able to reduce one's taxable income? ;) |
Sounds very hard to enforce to me.
I agree that it is perhaps aimed at the private car dealer or perhaps deceased estates. |
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