ATO to expand its data matching protocol to ensure tax compliance blog image

ATO to expand its data matching protocol to ensure tax compliance

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The Australian Taxation Office (ATO) is heightening its data matching efforts to ensure tax compliance by property investors and to detect fraud against the Commonwealth.

Rental bond data

Through the ATO’s collection of rental bond data from the state, as well as from territory rental bond authorities, they will be able to identify individuals who have income-generating properties. This data will also allow the ATO to identify properties that have had a CGT event due to a sale of real property dating back from 20 September 1985 to the 2019-2020 financial year.

Rental bond data collection and property transaction data matching is not something new. It actually commenced in 2005 as state and territory based exercises under the ATO’s CGT Compliance Challenge.

Data matching program notice

In their Gazette notice, the ATO explained that the data gathered “will be electronically matched with certain sections of ATO data holdings to identify taxpayers that can be provided with tailored information to help them meet their tax obligations, or to ensure compliance with taxation law”.

Increase in people renting

According to the ATO, there were around 2 million individual taxpayers who reported rental income of $42 billion and/or declared $45 billion in rental expenses in 2016. More and more people are renting homes, apartments, and rooms on platform sharing sites. Due to this increase, the ATO wants to ensure that people understand their tax obligations when it comes to renting out their property.

Furthermore, the ATO has also given notice of its intention to gather data to find people who have rented or continue to rent their property through an online platform during the 2016-17 to 2019-20 financial years.

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They will gather details of all the payments made by these online platforms to their users. These will include payments made by international entities made during the 2016-17 to 2019-20 financial years. Collecting these data will allow the ATO to identify the individuals who are not compliant with their taxes.


If you need assistance with your rental property tax compliance, contact a Chan & Naylor accountant near you, and we’ll be more than happy to help.

Aside from rental property tax compliance, have a look at our other accounting and advisory services that we do to help you achieve greater success.

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Chan & Naylor Group has nationwide offices in North Sydney, South West Sydney, Sydney, Pymble and Parramatta in New South Wales, Melbourne, Moonee Ponds and Hawthorn in Victoria, Brisbane and Capalaba in Queensland, and East Perth in Western Australia that can assist you with your rental property tax compliance as well as any other business or personal tax enquiry that you may have. Contact us today.



Photo: Stock Photo Secrets

2 responses to “ATO to expand its data matching protocol to ensure tax compliance”

  1. Lilly Fraser says:

    Will the ATO be able to link tenant claims for rent assistance to the landlord’s income as well?

    • Clive Nelson says:


      I cannot be absolutely certain as to your enquiry regarding rent assistance. Only the ATO would be able to clarify your particular query. I would say however that if a tenant lodged a claim for rent assistance I would expect that the claim would include details of the property being rented. Once this information is in the hands of a government agency then it has the capacity to be provided to the ATO for data matching purposes. I hope that this proves helpful.

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