My old school did. I went to a rank~25 school and I noticed they SIGNIFICANTLY scaled our internal marks from our raw test marks to our reports. In year 10 maths I got a ~70% (term 3) and a 77% (yearly). I got a 85% in my semester 1 report. I recieved an A with 90% in my year 10 semester 2 report. My rank against my cohort didn't change but you can definitely notice that my mark got significantly bumped. I noticed this for other subjects like science too, but not to this extent. I don't think other schools do though, but it really depends.