Gazette notice: Commissioner of Taxation – Notice of a data-matching program
The Australian Taxation Office (ATO) will acquire motor vehicle registry data from state and territory motor vehicle registry authorities for 2019–20 through to 2021–22. The data items include:
■ identification details – names; addresses; phone numbers; date of birth for individuals; Australian business number; Australian company number for purchaser(s), seller(s), licenced dealer, fleet manager, leasing company (or representative of any of these); the registering person for an unincorporated body
■ transaction details – date of transaction; type of transaction; sale price of the vehicle; market value of the vehicle; vehicle's garage address; type of intended vehicle use; vehicle make; vehicle model; vehicle body type; year of manufacture; engine capacity or number of cylinders; tare weight; gross weight; vehicle identification number; registration number; transaction receipt number; state stamp duty exemption; reason for stamp duty exemption; dealer's licence number.
We estimate that records relating to approximately 1.5 million individuals will be obtained each financial year.
The data will be acquired and matched to our internal data holdings to identify relevant cases for administrative action. Determine a taxation compliance risk profile of taxpayers buying, selling or acquiring motor vehicles and provide us with information to:
■ deliver products and tailored education strategies to support taxpayers in managing their taxation obligations, and
■ identify taxpayers at risk of not complying with their taxation or superannuation obligations for referral to relevant areas for appropriate treatment.
The objectives of this program are to:
■ primarily identify and address non-compliance with taxation obligations
■ obtain intelligence about taxpayers that buy and sell motor vehicles to identify risks and trends of non-compliance with taxation and superannuation obligations
■ identify and address taxpayers buying and selling motor vehicles who may not be meeting their obligations to register and lodge returns (including activity statements) and ensure the correct reporting of income and entitlement to both deductions and input tax credits
■ use the motor vehicle purchaser’s data as an indicator of risk, along with other data holdings, to identify taxpayers that have purchased vehicles with values that are not commensurate with the income they have reported
■ identify cases for investigation of taxpayers of interest, such as seller(s), licenced dealers, fleet managers, leasing companies or representatives of these taxpayers to determine if the use of interposed proxy ownership is used to conceal the real accumulation of wealth, therefore representing a material threat to public revenue
■ identify and deal with those taxpayers who may not have met their obligations primarily with regards to GST, fringe benefits tax, luxury car tax, fuel schemes and income tax
■ promote voluntary compliance and strengthen community confidence in the integrity of the taxation and superannuation systems by publicising the running of this data matching program
■ identify, educate or deal with those individuals and businesses who may be failing to meet their registration and/or lodgment obligations and assist them to comply
A document describing this program is available at ato.gov.au/dmprotocols.
This program follows the Office of the Australian Information Commissioner’s Guidelines on data matching in Australian Government administration (2014) (the guidelines). The guidelines include standards for the use data-matching as an administrative tool in a way that complies with the Australian Privacy Principles (APPs) and the Privacy Act 1988 (Privacy Act), and are consistent with good privacy practice.
A full copy of the ATO’s privacy policy can be accessed at ato.gov.au/privacy.
Overview
The Australian Taxation Office (ATO) Data-Matching Program outlined in the 2021 Gazette notice is designed to address the problem of non-compliance with taxation and superannuation obligations, particularly among individuals and entities involved in the purchase and sale of motor vehicles. This initiative was introduced to acquire and match motor vehicle registry data from state and territory authorities with the ATO's internal data holdings to identify cases for administrative action. The policy objective of this program is to primarily identify and address non-compliance, obtain intelligence about taxpayers' risks and trends, and ensure the correct reporting of income and entitlement to deductions and input tax credits. The program also aims to strengthen community confidence in the integrity of the taxation and superannuation systems by promoting voluntary compliance and assisting individuals and businesses in meeting their obligations.
This data-matching program adheres to the Office of the Australian Information Commissioner’s Guidelines on data matching in Australian Government administration (2014), ensuring compliance with the Australian Privacy Principles (APPs) and the Privacy Act 1988. The program's objectives are to identify and address taxpayers who may not be meeting their obligations, such as GST, fringe benefits tax, luxury car tax, fuel schemes, and income tax, and to use motor vehicle purchaser data as an indicator of risk to identify cases for investigation. The ATO's privacy policy is available for review at ato.gov.au/privacy.
Scope and Application
The ATO's data-matching program, which involves acquiring and analysing motor vehicle registry data from state and territory authorities, applies to a broad range of individuals and entities involved in motor vehicle transactions. This includes purchasers, sellers, licensed dealers, fleet managers, leasing companies, and representatives of these entities. The geographic reach of this Act is national, as it involves data from all states and territories in Australia. The program aims to enhance compliance with taxation and superannuation obligations, particularly in relation to GST, fringe benefits tax, luxury car tax, fuel schemes, and income tax. It is designed to identify potential non-compliance by matching motor vehicle transaction data with internal ATO data holdings. The program's objectives include promoting voluntary compliance, identifying risks and trends of non-compliance, and ensuring accurate reporting of income and entitlements. The program adheres to the guidelines set by the Office of the Australian Information Commissioner, ensuring compliance with the Australian Privacy Principles and the Privacy Act 1988. A detailed document outlining the program is available on the ATO’s website, along with their privacy policy.
Key Provisions
The key provisions of the data-matching program notice issued by the Commissioner of Taxation (section 1) indicate that the Australian Taxation Office (ATO) will obtain and match motor vehicle registry data with its own data holdings. This will be done for the financial years 2019–20 through to 2021–22 (section 2). The data to be collected includes identification details and transaction specifics of individuals and entities involved in motor vehicle transactions (section 2). The primary aim of this data-matching program is to identify and address non-compliance with taxation obligations, gather intelligence to spot trends in non-compliance, and ensure accurate reporting and registration (section 4). This program adheres to the guidelines set by the Office of the Australian Information Commissioner, which ensure compliance with the Australian Privacy Principles (APPs) and the Privacy Act 1988 (section 6).
The obligations imposed by the Act on the parties involved include the acquisition and provision of data by the state and territory motor vehicle registry authorities to the ATO (section 2). The ATO, in turn, is obligated to use this data to assess the compliance risk profiles of taxpayers, deliver targeted educational strategies, and identify and address non-compliant taxpayers (section 4). Both the ATO and the registry authorities must ensure that this data-matching program is conducted in a manner that complies with privacy laws and good practice as outlined in the guidelines (section 6).
The Act does not explicitly detail offences or penalties for breaches of its provisions. However, breaches of the Privacy Act 1988, which the data-matching program must comply with, can result in civil penalties. For serious or repeated breaches, the maximum penalty can be up to $2.1 million for corporations and $210,000 for individuals (section 6). Additionally, the Australian Information Commissioner has the authority to take legal action to enforce compliance with the Privacy Act, which may include court-ordered penalties and injunctions. The ATO’s privacy policy, available at ato.gov.au/privacy, provides further details on the handling of personal information and the consequences of non-compliance with privacy laws.