ATO Data-Matching: What You Need to Know

This year, they’ve announced a specific focus on rental property declarations in individual tax returns.

If the ATO finds a mismatch between the data they hold and what’s reported in your return, they may contact you to clarify or update the information.

Where Does the ATO Get Its Data?

The ATO collects information from a range of third-party sources, including:

• Financial institutions
• Property managers and real estate agents
• Land title offices
• Sharing economy platforms (e.g., Airbnb)
• Bond authorities
• Insurers

Rental Property Data-Matching Letters

Over the coming months, the ATO will be sending letters to taxpayers whose rental income or property details don’t align with other data sources.

Common examples include:

• Overdue Tax Return with Rental Income Letter – when third-party data shows you own a property but haven’t lodged a return for the relevant years.
• Rental Income Not Included Letter – when the ATO believes some or all of your rental income wasn’t included in your lodged return.

Receiving a letter doesn’t automatically mean you’ve done something wrong—it’s a prompt to review your return and correct any missing information before penalties apply.

What You Should Do

1. Don’t ignore the letter. The ATO usually expects a response within a specific timeframe.
2. Gather your records. Double-check your rental income, expenses, and property details.
3. Call TaxAssist Accountants for professional help.

How TaxAssist Accountants Can Help

If you receive an ATO data-matching letter—or simply want peace of mind before tax time—your local TaxAssist Accountant can:

• Review your rental income and deductions to ensure accuracy.
• Lodge or amend your tax return on your behalf to prevent penalties or interest.
• Communicate directly with the ATO to clarify discrepancies.
• Help you maintain compliant, well-organised records for future years.
• Provide proactive advice to reduce the risk of future ATO reviews.

Need Assistance?

If you’ve received an ATO letter or are unsure about your rental property reporting, book an appointment with your local TaxAssist Accountant today.

We’ll ensure your tax affairs are accurate, compliant, and stress-free.

If you have any queries or need help with any of the issues raised by the Federal Budget please contact your local TaxAssist Accountant on 1300 513 332 for expert advice and guidance.

Last updated: 29th October 2025