ATO set to audit five popular holiday home locations

Tax investigators are especially targeting five of Australia's most popular summer holiday spots in a heightened crackdown on tax avoidance by property investors.

The Saturday Telegraph revealed the random audit locations.

They will focus on the NSW Southern Highlands, the Hunter Valley, Sydney's northern beaches, the Gold Coast and the Mornington Peninsula in Victoria.

The ATO deputy tax commissioner Kath Anderson said Airbnb and Stayz were in the sights of the audit.

Recent audits had discovered vacant land as available for rent.

Other issues include "mates' rates." There were also cases where restrictions meant the tax office deemed the properties as not really available for lease.

"What we are seeing is that the majority of rental property owners we audit are getting it wrong, either deliberately or by mistake," Kath Anderson said.

The ATO has identified some cases where property owners have attempted to claim full-year tax deductions on their tax returns for holiday houses rented for only a few weeks.

The ATO are paying particular attention to holiday homes that are not genuinely available for rent or rented at less than market rates, properties with rental income disproportionate to the expenses incurred and excessive claims for rental interest for parts of the loan that are private in nature, Ms Anderson said.