SKY UPDATE | ATO DATA-MATCHING PROGRAMS

29 August 2024  

This week three Gazette notices have been published concerning ‘data-matching’ programs to be run by the ATO.

Data-matching programs are initiatives used by the ATO to cross-check information provided by taxpayers with data sourced from third parties.

By comparing data from various sources, the ATO can better identify discrepancies to help them target their audit and compliance activities.

The three programs are:

Property Management Data-Matching Program

The Property Management Data-Matching Program will source data from property management software providers for the 2018-19 through 2025-26 years.

This data will include property owner information, property details, and transaction records.

The ATO expects to collect data on about 2.3 million individuals in each year and aims to use that data to ensure that taxpayers are accurately disclosing rental property income and deductions.

Lifestyle Assets Data-Matching Program

The Lifestyle Assets Data-Matching Program will gather data from insurers for the financial years 2023-24 to 2025-26 on lifestyle assets including vehicles, caravans, thoroughbred horses, fine art, marine vessels and aircraft.

This program aims to:

  • Assist ATO compliance staff to form a more complete view of a taxpayer’s position.
  • Identifying potential discrepancies in Income Tax, Capital Gains Tax (CGT), Fringe Benefits Tax (FBT), Goods & Services tax (GST), and superannuation obligations.
  • Gain insights for developing debt management strategies.

Officeholders Data-Matching Program

The Officeholders Data-Matching Program will source information on officeholders across various entities for the years 2023-24 through 2026-27.

The ATO will acquire data from the Australian Securities and Investments Commission (ASIC), the Office of the Registrar of Indigenous Corporations (ORIC), the Australian Charities and Not-for-profits Commission (ACNC), and the Australian Business Registry Service (ABRS).

This program is expected to collect records on over 11 million individuals to help the ATO to:

  • Ensure compliance with the Director ID regime.
  • Improve data linking of individuals with the organisations they are involved in.
  • Combat illegal phoenix activity.

Implications for Taxpayers

These data-matching programs increase the ATO’s visibility of taxpayers’ affairs which will be used to inform compliance activities, including audits.

This will level the playing field as it gives the ATO greater capacity to identify and deal with those who seek to cheat the system.

However, it is also important for the rest of us to ensure that we apply appropriate diligence to record keeping and accurate tax lodgements.  Particularly given that these programs touch on some complex areas of tax law.

If you would like to know more about these programs, or just need assistance to ensure you stay compliant, please get in touch.

Sky Accountants Ballarat

Phone: 03 5332 8855

Office Address: 902 Howitt Street, Wendouree, Victoria 3355, Australia

Postal Address: PO Box 2234, Bakery Hill, Victoria 3354

Sky Accountants Gisborne & Macedon Ranges

Phone: 03 5428 1400

Office Address: 45 Hamilton Street, Gisborne, Victoria 3437, Australia

Postal Address: PO Box 270 Gisborne Victoria 3437