The Australian Taxation Office (ATO) has announced that it will soon begin collecting rental bond data for approximately 2.2 million individuals.
This data will be sourced twice a year from state and territory bond regulators and will include comprehensive details such as names, addresses, dates of birth, phone numbers, email addresses, and bank account information for both rental providers and tenants. Additionally, business-related details of property managers will be collected.
The ATO will also obtain information regarding the rental property itself, including its address, lease duration, start and end dates, bond amount, rental payments, and payment frequency. Further details, such as the type of dwelling, number of bedrooms, and a unique property identifier, will also be recorded.
This initiative follows the ATO’s acquisition of property management data last year from software providers, covering 2.3 million rental property owners. The project aims to identify instances where rental income has not been fully declared or where capital gains tax (CGT) obligations on the sale of rental properties have not been met. The ATO's increased focus on rental income compliance suggests that under-reporting remains a significant concern.
For those renting properties through short-term accommodation platforms such as Airbnb, the ATO is already accessing relevant data directly from platform providers. It is important to note that income earned from short-term rentals or renting out a room in a private home must be declared as taxable income, similar to long-term rental income. However, claiming deductions in such cases can involve complex calculations regarding expense apportionment.
Given the ATO’s heightened scrutiny of rental income, property investors are encouraged to review their tax records to ensure all rental transactions have been accurately reported. If any discrepancies are identified, voluntarily disclosing them to the ATO before an audit is initiated may be the best course of action.
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