Homeowners 'need to get their taxes in order'

Aussies who have taken out home loans have been advised to ensure that they pay the taxes they are required to.

The Australian Tax Office's (ATO's) deputy commissioner James O'Halloran observed that investing in property "has its attractions", reports the Herald Sun.

However, he noted that there are up to 4,000 property audits and reviews each year to check on income, capital gains tax and goods and services tax.

"[Investing in property] comes with responsibility and obligations to pay or report appropriately," Mr O'Halloran stated.

Figures from the ATO revealed that almost $33 billion is claimed annually as rental expenses, with up to $5.5 billion refunded through negative gearing.

A study released this week by ANZ revealed that between 1987 and 2011, owner-occupied property was the investment option that yielded the highest returns.

On average, those with these residences received an annual return of 12 per cent, while investment property brought in just under ten per cent.

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