Well, the ATO are at it again, extending their endless data-matching program. This time the game’s bond. Rental Bond.

Actually, the rental bond data-matching program is not all that new, but the ATO has recently updated its website guidance, which means it’s becoming more of a focus. The tax office says it has been collecting rental bond information since 2005 including data dating back to 1985. In that year the more important Bond (Roger Moore) starred in A View to Kill. That movie has raked in about $429 million, perhaps an inspiration for the ATO’s targeted collections from its own bond program.

Through data-matching programs, the tax office procures data from relevant industries and then probes deep into your tax return looking for comparative anomalies. The ATO refers to data-matching as a “powerful administrative and law enforcement tool”. It’s sort of a licence to drill.

The purpose of most data-matching projects is to risk-profile taxpayers that fall outside of the norm. This one specifically looks to identify taxpayers who own or have sold income producing properties and might not be meeting reporting requirements. This group is then analysed, reviewed and/or audited as considered necessary. 

In 2022/23, the program in combination with other data-matching and compliance strategies identified 5,600 taxpayers where real property dealings had not been treated correctly, raising an additional $23 million in revenue. Only $406 million to go.

In WA they collect data from the Bond Administrator, including information such as landlord and tenant details, managing agent details, dwelling details and bond amounts.

And this is not the only rental related matching program. Other projects target data from landlord insurers, property managers, investment property lenders, and sharing economy platforms. 

There are currently more than 20 data-matching programs on the go, ranging from government payments, to lifestyle assets, motor vehicles registries and private health insurance. Some providers such as banks, employers and government agencies have a legal obligation to report ongoing information. These organisations can never say never again. The ATO also has special powers to collect information to address high-risk industries or issues as it determines. 

Each year the ATO estimates what it considers to be the “tax gap” – the amount it considers it has missed out on due to non-compliance with tax laws. For the 2022 year this was estimated at around $44.5 billion, with $10.6 billion of this attributed to individuals not in business, including rental property owners. They see data-matching programs as a major tool in reducing this gap.

If you’re after a quantum of solace, your best approach is to assume that the spectre of the ATO is everywhere and sees everything you do.

by MARK DOUGLAS
FCPA
Managing Partner of Francis A Jones
www.faj.com.au