Strengthened Data Matching: Australian Taxation Office Expands Data Matching
- Arnold Shields
- Jul 7, 2023
- 2 min read
Updated: May 15
The Australian Taxation Office (ATO) has significantly broadened its data-matching program, sending a strong message to individuals and businesses: it’s time to lift your game when it comes to reporting income and deductions accurately. This expanded program now includes detailed reporting from banks, real estate agents, landlords’ insurers, and digital platforms like Uber and Airbnb.
Rental Property Owners Under the Microscope
The ATO’s findings are stark, around 90% of rental property owners make mistakes in their tax returns. To combat this, the ATO now receives detailed data from:
Investment loan providers
Landlord insurance companies
Property management platforms
With this increased transparency, even small discrepancies may trigger reviews or audits. If you're a landlord, now’s the time to ensure your claims match your records. Be especially cautious with:
Interest deductions on loans
Repairs vs. capital improvements
Rental income (including bond retention or short-term letting platforms)
Use of Tax Agents Isn’t a Free Pass
While 87% of rental property investors use registered tax agents, it doesn’t absolve them from responsibility. The ATO has made it clear: you remain liable for any errors. Make sure your accountant receives full, accurate documentation to avoid costly penalties.
Gig Economy Workers: ATO Targets Ride-Share and Short-Term Rentals
The Sharing Economy Reporting Regime (SERR) was launched in July 2023 to capture income from services like:
Ride-sourcing and taxi services (e.g. Uber, Ola)
Short-term accommodations (e.g. Airbnb, Stayz)
These platforms must report all earnings to the ATO. From 1 July 2024, all digital platforms, including task-based and freelance services—will also be required to report.
If you’re earning side income, ensure your records match the figures submitted by platforms. The ATO already knows what you’ve earned. Misreporting (or forgetting) is a red flag.
Income Protection Insurance: New Data, New Risks
The ATO has also ramped up scrutiny of income protection insurance. They now cross-check:
Premiums paid
Payouts received
You can claim a tax deduction for premiums only if you pay for the policy personally. If your super fund pays, the deduction is not allowed. Also, all payouts, regardless of policy owner, must be declared as income in your return.
Accuracy Is Non-Negotiable
With this level of oversight, taxpayers must take extra care. If you’ve previously relied on guesswork or missed minor details, that approach is no longer safe. Keep detailed records, check your statements, and work with a professional accountant who understands the latest compliance trends.
If you’re unsure whether your current tax practices would withstand scrutiny, Dolman Bateman is here to help. Get in touch today and avoid becoming another ATO statistic.
Disclaimer:
The information provided in this article is general in nature and does not constitute personal financial, legal or tax advice. While every effort has been made to ensure the accuracy of this content at the time of publication, tax laws and regulations may change, and individual circumstances vary. Dolman Bateman accepts no responsibility or liability for any loss or damage incurred as a result of acting on or relying upon any of the information contained herein. You should seek professional advice tailored to your specific situation before making any financial or tax decision.
