Rental data-matching letters

The ATO uses data for pre-filling, detecting dishonest or fraudulent behaviour and identifying areas where they can educate taxpayers to help them understand their tax obligations. When data doesn’t match, the ATO may contact you to find out why.

Over the coming months, the ATO will be sending letters where their data indicates:

• tax returns including rental income may need to be lodged for specific years
• rental income should be included in previously lodged tax returns.

Overdue tax return with rental income letter: third party data indicates you owned a property but has not lodged a tax return for the years listed.

• Check if you owned a rental property during the relevant period and review your records.
• Lodge any outstanding returns to bring your lodgments up to date.
• If no tax return is required, no further action is needed.

Rental income not included in lodged tax return letter: third party data indicates you may have omitted rental income from your lodged tax returns.

• Check rental property ownership and review your records.
• Lodge amendments where necessary, taking into account your legal interest in the property and periods the property was rented out, used for private purposes, or rented at non-commercial rates.

Source: ATO QC105610