Information Regarding Adjustments To Rental Labels From The 2019-20 And 2020-2021 Random Enquiry Program For Individuals Not In Business.

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The ATO's Random Enquiry Program (REP) operational records detail findings from the 2019-20 and 2020-21 bundled surveys of 1,089 individual non-business taxpayers, used to estimate the income tax gap. The rental property stratum was intentionally overweighted at 23% of the sample versus 15% in the actual population. Overall, 69% of cases resulted in adjustments, averaging 3.8 label changes per return; only 6.3% of adjustments favoured taxpayers exclusively. Among 232 rental cases, 99% had at least one rental label adjustment, generating average tax effects of $1,787 (median $675), with 86% of rental adjustments targeting expense labels rather than gross income. Non-rental cases showed a 61% adjustment rate. The disclosure reflects the ATO's methodological approach to sampling design and the prevalence of