Australians with a second home are being urged to make sure they are aware of a new approach from the ATO as rules tighten about what homeowners can claim at tax time. A new, stricter interpretation of existing provisions means that owners could be caught out when trying to claim expense deductions they lodged in previous years. Anyone with a holiday home, whether it's positively or negatively geared needs to be aware of these changes," Franks said. Previously, the ATO primarily relied on the "days available for rent" method to allow homeowners to claim deductions on most holding costs in proportion to its rental availability in the year. If not, "you could lose some of your deductions about mortgage interest, rates, land tax, repairs, and maintenance," Franks said.