ATO now Data Matching with Rental Bond details

The ATO are now using rental bond data to help identify and address underreported income by landlords.

To improve its data-matching program, the ATO will collect rental bond information from state and territory regulators twice a year. This data will be used to monitor landlords who may not be accurately reporting their rental income. Data matching involves the ATO cross-referencing information from various sources to spot inconsistencies or discrepancies that could indicate underreporting of income. By gathering rental bond details, the ATO will be able to compare the amounts landlords report on their tax returns with the bond amounts lodged with regulators, allowing them to identify any differences that could suggest underreporting.

The data collected will also be used to ensure compliance among non-resident landlords, making sure they meet requirements such as foreign investment approvals, property usage rules, and vacancy fee obligations. The information the ATO collects will include the names, addresses, phone numbers, and bank account details of landlords, tenants, and property managers. In addition, the ATO will gather specific details about each rental bond transaction, including the property address, lease start and end dates, bond amounts, rent amounts, and payment frequencies.

This data will also cover property characteristics, such as the type of dwelling and the number of bedrooms, as well as bond numbers, lodgment dates, statuses, refund amounts, and records of unclaimed bonds. By collecting and analysing this information, the ATO are ensuring that landlords are meeting their tax obligations and following the relevant regulations.