The Australian Taxation Office will acquire residential investment property loan (RIPL) data from financial institutions and use this information to identify individuals who may not be correctly reporting rental property interest deductions and net capital gains.
RIPL data will be compared with claims a taxpayer makes in their rental property schedules and rental tax return labels. The ATO will use this data to identify, assess and treat several taxation risks, including:
- lodgement — confirming taxpayers with a rental property are lodging a tax return and their rental property schedule on or before the relevant due date
- income tax — confirming taxpayers with a rental property are correctly reporting interest on loan and borrowing expense deductions in their rental property schedules and associated income tax return labels
- CGT — confirming the calculation of cost base elements used to determine the net capital gain or loss on a rental property used to generate income.
