Program objectives
Our data-matching programs help us to administer the tax and superannuation systems and maintain community confidence in the integrity of these systems.
The objectives of the rental bond data-matching 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.
Why we look at rental bond data
The rental bond data-matching program will allow us to identify and address tax risks, including:
- failure to lodge – taxpayers with a rental property may fail to lodge a tax return and their rental property schedule on or before the relevant due date
- omitted or incorrect reporting of income – taxpayers with a rental property may omit or incorrectly report income and deductions in their rental property schedules and associated income tax return labels
- omitted or incorrect reporting of capital gains tax (CGT) – taxpayers with a rental property may omit or incorrectly report cost base elements which are used to determine the net capital gain or loss on a rental property used to generate income.
- non-compliance with foreign investment laws – foreign residents 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: