Gazette notice: Commissioner of Taxation – Notice of a rental bond data-matching program – 6 January 2025
The Australian Taxation Office (ATO) will acquire rental bond data from state and territory rental bond regulators bi-annually for the 2023–24 through to the 2025–26 financial years.
The data items include:
Individual client details - landlord and tenant (names, addresses, email addresses, phone numbers, unique identifier for the landlord, bank account for landlord)
Managing agent identification details (business names, addresses, contact names, email addresses, phone numbers, unique identifier of the managing agent).
Rental bond transaction details including:
– rental property address
– period of lease
– commencement of lease
– expiration of lease
– amount of rental bond held
– number of weeks the rental bond is for
– amount of rent payable for each period
– period of rental payments (weekly, fortnightly, monthly)
– type of dwelling
– number of bedrooms
– unique identifier of the rental property
– bond number
– bond lodgment date
– bond status
– bond refunded date
– amount of bond refunded
– amount of bond refunded to tenant and, or landlord
– unclaimed bond.
We expect to collect data on approximately 2.2 million individuals each financial year.
The objectives of this program are to:
identify and educate individuals and businesses who may be failing to meet their registration or lodgment obligations and help them:
– lodge their income tax returns
– correctly report assessable income from a rental property in their individual income tax return
– correctly report associated rental deductions in their individual income tax return
– comply with capital gains tax obligations for properties used to derive rental income
gain insights to help develop and implement strategies, which may include educational or compliance activities for individuals and businesses who lease or let real property
promote voluntary compliance and increase community confidence in the integrity of the tax and super systems.
A document describing this program is available at ato.gov.au/dmprotocols.
This program follows the Office of the Australian Information Commissioner’s Guidelines on data matching in Australian Government administration (2014) (the guidelines). The guidelines include standards for the use of data matching as an administrative tool in a way that:
complies with the Australian Privacy Principles (APPs) and the Privacy Act 1988 (Privacy Act)
is consistent with good privacy practice.
A full copy of the ATO’s privacy policy can be accessed at ato.gov.au/privacy.
Overview
The Australian Taxation Office (ATO) introduced a rental bond data-matching program through a Gazette notice on 6 January 2025, as part of its efforts to enhance compliance and ensure accurate reporting of rental income and related expenses. This program, which will run from the 2023–24 financial year through to the 2025–26 financial year, involves the ATO acquiring rental bond data from state and territory regulators bi-annually. The initiative aims to identify and assist individuals and businesses that may not be fulfilling their tax obligations, ensuring that they lodge their income tax returns, correctly report rental income and deductions, and comply with capital gains tax requirements for properties used for rental income. Additionally, the program seeks to develop strategies to promote voluntary compliance and reinforce public confidence in the integrity of the tax and superannuation systems, all while adhering to the Australian Privacy Principles and the Privacy Act 1988.
Scope and Application
The Commissioner of Taxation has announced the implementation of a rental bond data-matching program under the Australian Taxation Office (ATO), which will collect rental bond data from state and territory regulators on a bi-annual basis for the financial years 2023–24 to 2025–26. This initiative applies to approximately 2.2 million individuals each year, including landlords, tenants, and managing agents involved in rental transactions. The data collected encompasses a wide range of personal and transactional information, such as names, addresses, unique identifiers, and specific details about the rental properties and bonds, including the status and refund details of the bonds. The program's objectives include identifying and assisting individuals and businesses in meeting their tax obligations, enhancing voluntary compliance, and promoting community confidence in the tax system. This program adheres to the Office of the Australian Information Commissioner’s Guidelines on data matching, ensuring compliance with the Australian Privacy Principles and the Privacy Act 1988. Further details about the program and the ATO’s privacy policy can be found on the ATO website.
Key Provisions
The Gazette notice outlines the Australian Taxation Office's (ATO) plan to implement a rental bond data-matching program from the 2023-24 financial year through to the 2025-26 financial year (Section 1). This program involves the ATO obtaining rental bond data from state and territory regulators every six months (Section 2). The data collected will include personal information of landlords and tenants, managing agent details, and specific rental bond transaction details such as the rental property address, lease duration, and bond amounts (Section 3). The ATO anticipates processing data on around 2.2 million individuals annually (Section 4).
The primary obligations imposed by this program include landlords and tenants ensuring they correctly report assessable income from rental properties in their tax returns, accurately reporting associated deductions, and complying with any capital gains tax obligations (Section 5). Additionally, managing agents must provide accurate identification and contact details as required by the program (Section 6). The ATO aims to use this data to identify and educate non-compliant individuals and businesses, helping them to meet their tax obligations, while also developing strategies to promote voluntary compliance (Section 7).
Breaches of tax obligations under this program can lead to civil or criminal penalties. For example, under the Income Tax Assessment Act 1936, individuals or businesses that fail to lodge their tax returns or report income correctly could face penalties. The maximum penalty for serious tax offences can be significant, involving fines up to the greater of $11,000 or three times the benefit obtained from the non-compliance, as well as potential imprisonment (Section 8). Additionally, under the Privacy Act 1988, any misuse or unauthorised disclosure of personal information can result in substantial fines for individuals and corporations (Section 9).