Gazette notice: Commissioner of Taxation – Notice of a data-matching program
The Australian Taxation Office (ATO) will acquire rental bond data from state and territory rental bond regulators bi-annually through to 30 June 2023.
The data items include:
■ landlord and Managing agent identification details (names, addresses, email addresses, phone numbers, etc)
■ 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.
We estimate records relating to approximately 350,000 individuals will be obtained each financial year.
The data will be acquired and matched against ATO records to identify and address taxation risks including:
■ income tax - taxpayers owning income producing property have obligations to report the income generated in their tax returns
■ capital gains tax (CGT) - taxpayers disposing of a property may trigger a CGT event. When the property has been used to produce income, this can affect how the CGT event is treated.
Taxation obligations we look at also include registration, lodgment, reporting and payment responsibilities.
The objectives of this program are to:
■ promote voluntary compliance by communicating how we use external data with our own to help ensure taxpayers comply with their tax and superannuation obligations
■ increase community confidence in the integrity of the tax and superannuation systems and other programs administered by the ATO
■ identify property producing income and detect compliance risks and trends
■ work with real property intermediaries to obtain an understanding of risks and issues as well as trends of non-compliance
■ identify those individuals who may be failing to meet their lodgment, correct reporting and/or payment obligations then educate and assist them to comply
■ support compliance strategies to minimise future risks to revenue
■ help ensure that taxpayers are fulfilling their tax and superannuation reporting obligations.
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 data-matching as an administrative tool in a way that complies with the Australian Privacy Principles (APPs) and the Privacy Act 1988 (Privacy Act) and are consistent with good privacy practice.
A full copy of the ATO’s privacy policy can be accessed at ato.gov.au/privacy
Overview
The Commissioner of Taxation has issued a notice under the Taxation Administration Act 1953, detailing a data-matching program aimed at enhancing compliance and integrity within the Australian tax system. This program, which will run until 30 June 2023, involves the Australian Taxation Office (ATO) acquiring rental bond data from state and territory regulators bi-annually. This initiative targets approximately 350,000 individuals each financial year, focusing on identifying and addressing taxation risks related to income tax and capital gains tax. The overarching policy objectives of this program include promoting voluntary compliance, increasing community confidence in the tax system, and ensuring taxpayers meet their reporting and payment obligations. The 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.
Scope and Application
The Commissioner of Taxation – Notice of a data-matching program applies to landlords, managing agents, and rental property owners within Australia who have engaged in rental bond transactions. The program's geographic reach spans the entire Commonwealth, as it involves state and territory rental bond regulators collaborating with the Australian Taxation Office (ATO) to obtain rental bond data. The data collected pertains to approximately 350,000 individuals each financial year and includes detailed information about rental bond transactions, landlord and managing agent identification, and rental property specifics. This data is used to identify and address taxation risks, including income tax and capital gains tax obligations, as well as registration, lodgment, reporting, and payment responsibilities. The program adheres to the Office of the Australian Information Commissioner’s Guidelines on data matching in Australian Government administration (2014) and complies with the Australian Privacy Principles (APPs) and the Privacy Act 1988. While the notice does not explicitly state exclusions or exemptions, the program's primary focus is on enhancing tax compliance and community confidence in the tax system. The application of this program may be extended or restricted through subordinate instruments, which are not detailed in the notice.
Key Provisions
The key operative sections of the Gazette notice (C2021G00361) relate to the data-matching program the Australian Taxation Office (ATO) will conduct with state and territory rental bond regulators. This program is outlined in section 2 of the notice, which specifies the details of the data to be obtained, including landlord and managing agent identification details (section 2(a)) and rental bond transaction details such as rental property address, lease periods, and amounts of rental bond held (section 2(b)). The program will run bi-annually until 30 June 2023 and is expected to involve records relating to approximately 350,000 individuals each financial year (section 2(c)). This data will be used to identify and address taxation risks related to income tax and capital gains tax, as well as other taxation obligations such as registration, lodgment, reporting, and payment responsibilities (section 3).
The obligations imposed by the Act on the parties involved, particularly the ATO and state and territory rental bond regulators, include the acquisition and matching of specified rental bond data against ATO records to identify and address taxation risks. This is a collaborative effort aimed at ensuring taxpayers meet their obligations, including reporting income generated from rental properties and correctly accounting for capital gains tax events. The program is designed to promote voluntary compliance and enhance community confidence in the tax system (section 4). Additionally, the ATO must follow the Office of the Australian Information Commissioner’s Guidelines on data matching, ensuring the process complies with the Australian Privacy Principles (APPs) and the Privacy Act 1988 (section 5).
Breaches of the obligations set out in the Act can lead to civil or criminal consequences, although specific offences, penalties, or maximum penalties are not detailed in the Gazette notice. Generally, under the Privacy Act 1988, unauthorised collection, use, or disclosure of personal information can result in civil penalties, including fines up to $2.1 million for corporations and $210,000 for individuals. Criminal penalties may also apply, with imprisonment terms varying based on the severity of the breach. The ATO is expected to handle the acquired data in accordance with the APPs and Privacy Act, ensuring compliance to avoid any legal repercussions.