By Lydia Kellner
Publication Date: 2025-11-23 18:00:00
Holiday home owners across Australia are taking note: the Australian Taxation Office is increasing its focus on your tax claims and is equipped with cutting-edge artificial intelligence to track down those who break the rules.
If your coastal vacation or country getaway isn’t really making a living during peak times, you could be left with a hefty bill and the loss of valuable deductions.
The ATO has issued a stern warning, advising that holiday home tax deductions may be denied unless the properties are actively offered for rent during periods of high demand such as Christmas and Easter.
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With this step, the tax office wants to ensure that properties for which deductions are claimed are real investment vehicles and not just personal playgrounds.
According to Yahoo Finance, more than two million investment properties receive tax breaks each year,…
