All Topics / Legal & Accounting / How do they check PPOR for FHOG? Anyone been checked?

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  • Profile photo of surfermarksurfermark
    Member
    @surfermark
    Join Date: 2005
    Post Count: 8

    Anyone know how/if they actually check you have lived in your house for 6 months starting within the first 12 to be eligible for the FHOG & stamp duty concessions?

    My friend got a letter just after he bought stating he must retain proof via 2 bills and was required to post it in.

    Has anyone out there not bothered to send that information in?

    Do the OSR follow this up actively or is it only raised if you end up under an ATO tax audit?

    Do the ATO talk to the OSR?

    My friend is in a situation where he wasnt able to move in within 12 months due to a work situation and couldnt afford not leave it unrented.  He wont be claiming the loss as its negatively geared, but doesnt want to be asked to pay the stamp duty or FHOG back or it will break him.

    Has anyone been through this?

    Thanks

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    The OSR do random audits and target some people who have been 'dobbed' in. There are cases where the FHOG has been ordered to be repaid and extra stamp duty imposed.

    Look at this article on a guy who had to pay it back http://www.mccourts.com.au/public/news/realestate/HTOct07.html#1

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of Mortgage HunterMortgage Hunter
    Participant
    @mortgage-hunter
    Join Date: 2003
    Post Count: 3,781

    Your friend is contemplating fraud.

    The upside is that if he does voluntarily repay it, and doesn't occupy the house, he will be able to claim it for his next home.

    Profile photo of foundationfoundation
    Member
    @foundation
    Join Date: 2005
    Post Count: 1,153
    surfermark wrote:
    Anyone know how/if they actually check you have lived in your house for 6 months starting within the first 12
    Do the OSR follow this up actively

    Yes they do. They also use data matching – believe me, everybody from the ATO to the Electoral Office know where you're living these days.

    Quote:
    Has anyone been through this?

    Not me, but some 3500 people in NSW alone have been forced to repay the money and as many as 20+ prosecuted.
    http://www.news.com.au/business/story/0,23636,22653771-31037,00.html

    Cheers,
    F. [cowboy2]

    Profile photo of qqd340qqd340
    Member
    @qqd340
    Join Date: 2009
    Post Count: 2

    Does OSR only check bills and bank statements? Do they interview neighbours or follow the first home buyers home…??? If not I think it would be fairly easy to get away by just providing bills and statements….

    Profile photo of j900j900
    Participant
    @j900
    Join Date: 2008
    Post Count: 56

    Eventually they can catch up and data-match 100% of the population if they want to. It's only a database query.

    May not happen this year, not next year not year after, but could happen on 4th or 5th year… By then you also need to repay the interest.

    A lot more incentive to audit people receiving grants in 2008/2009 due to higher payouts. I think.

    Profile photo of crjcrj
    Participant
    @crj
    Join Date: 2004
    Post Count: 618

    Tell your friend not to be worried.  He's only likely to be caught out if there are any of the following:

    Rental bond
    Electricty/gas/phone accounts for that address in his tenants' names or elsewhere in his name
    Electoral records as above
    RTA records as above
    Tax returns showing his address/his tenants' addresses
    Bank records give another address
    His employer's records give another address
    His insurance shows it is an investment property

    A tenant/friend/exgirlfriend/work colleague blows the whistle

    or the OSR does a spot check

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    One of my clients recently got audited by the OSR. What they do is send you a letter, initially, and ask you to provide proof that you were living in the property. If they are satisfied they probably won't take the matter further, but they could do so if suspicious about something  -especially if someone has made some allegations.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of hydramaxhydramax
    Participant
    @hydramax
    Join Date: 2009
    Post Count: 47

    In NSW if you are unable to move into your property within the first 12 months because you have work commitments preventing it, you can ask the OSR for an extension which can be granted if they see fit. But this would need to be done prior to the 12 months expiring and ideally as early as possible.  Best idea is to ring the OSR in your state and ask the question. I woudn't try to scam the OSR you would be stunned how easy it is to make a mistake as well as having to ensure you stay friendly with everybody you know.

    Hydra

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