Program objectives
Our data-matching programs help us fulfil our responsibility to protect public revenue and maintain community confidence in the integrity of the tax and superannuation systems.
The objectives of the rental bond data-matching program are to:
- promote voluntary compliance by communicating how we combine and use external and internal data to help taxpayers comply with their tax and super obligations
- increase community confidence in the integrity of the tax and super systems and programs we administer
- identify properties producing income and individuals who may be failing to meet their lodgment, correct reporting or payment obligations and take appropriate action (compliance or education and assistance)
- improve detection of risks and understand and assess compliance trends
- work with real property intermediaries to address risks and improve voluntary compliance
- support strategies to address risks to revenue and compliance with foreign investment laws.
Why we look at this data
The rental bond data-matching program will allow us to identify and address a number of tax risks, including:
- under-reporting or non-reporting of income - taxpayers owning an income producing property have obligations to report the income generated in their tax returns
- misapplication of capital gains tax (CGT) provisions - taxpayers disposing of a property may not apply the CGT provisions correctly leading to under-reporting or non-reporting of income associated with the sale of the property
- non-compliance with foreign investment laws - foreign person owning residential property need to meet conditions such as
- those imposed on foreign investment approvals
- use of a dwelling
- vacancy fees.
For more information on your tax obligations when owning a rental property see:
- Residential rental properties
- Rental income you must declare