Gazette notice: Commissioner of Taxation – Notice of a data-matching program
The Australian Taxation Office (ATO) will acquire invalidity benefit payments data from Commonwealth Superannuation Corporation for 2010–11 through to 2021–22.
The data items include:
■ identification details (name, date of birth, date of death, tax file number, email address, phone number, bank BSB and account number)
■ transaction details (scheme name, member account number, unique superannuation identifier, product number, scheme ABN discharge date, pension payment dates, pension reclassifications, pension commencement date, pension cancellations, pension reason, preservation age, taxable (taxed and untaxed elements) amounts paid, disability superannuation benefit indicator, days to retirement, service days, date of determination of reclassification for entitlement to invalidity, Date of determination of disability, accumulation phase value).
We estimate records relating to approximately 16,000 individuals will be obtained each financial year.
The data will be acquired and matched to remediate tax and superannuation treatment of certain superannuation schemes invalidity benefit payments following recent court decisions. These obligations may include registration, lodgment, reporting and payment responsibilities.
The objectives of this program are to:
■ identify individuals who are impacted by court decisions regarding the taxation of invalidity benefit payments
■ help individuals understand the potential impact of changes to the tax and super treatment of their invalidity benefit payments, as well as the potential impacts of remediation
■ automate taxation and superannuation remediation for the impacted population where possible, to make the process simpler and quicker for impacted individuals, or facilitate streamlined manual remediation
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) is executing a data-matching program, notified under the Commissioner of Taxation – Notice of a data-matching program (C2021G00159), to acquire invalidity benefit payments data from the Commonwealth Superannuation Corporation. This initiative spans the financial years 2010–11 through to 2021–22 and encompasses extensive personal and transaction-related data to address the ramifications of recent court rulings on the tax and superannuation treatment of invalidity benefit payments. The data obtained will facilitate the identification of approximately 16,000 individuals annually, aiming to remediate their tax and superannuation obligations, including registration, lodgment, reporting, and payment responsibilities. The primary objective of this program is to ensure that affected individuals are aware of the potential impacts on their tax and superannuation treatment, and to automate or streamline the remediation process to enhance efficiency and clarity. This program adheres to the guidelines set forth by the Office of the Australian Information Commissioner, ensuring compliance with the Australian Privacy Principles and the Privacy Act 1988.
Scope and Application
The Commissioner of Taxation has announced a data-matching program aimed at acquiring invalidity benefit payments data from the Commonwealth Superannuation Corporation for the financial years 2010–11 to 2021–22. This program is designed to obtain identification and transaction details for approximately 16,000 individuals annually. The data will be used to remediate tax and superannuation treatment of invalidity benefit payments following recent court decisions, which could affect registration, lodgment, reporting, and payment responsibilities. The program’s primary objectives include identifying individuals impacted by these court decisions, helping them understand the potential implications of changes in tax and super treatment, and automating remediation processes to simplify and expedite the process for those affected. This initiative 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 and the Privacy Act 1988. A comprehensive description of the program and the ATO’s privacy policy are available on the ATO’s website.
Key Provisions
The main operative sections of this data-matching program (Gazette notice: C2021G00159) pertain to the acquisition of invalidity benefit payments data from the Commonwealth Superannuation Corporation by the Australian Taxation Office (ATO) (s. 1). This data acquisition aims to remediate tax and superannuation treatment of certain superannuation schemes' invalidity benefit payments following recent court decisions (s. 2). The program will cover data from the 2010–11 financial year up to 2021–22, involving approximately 16,000 individuals each financial year (s. 3). The data items include identification details and transaction details, which will be used to identify individuals impacted by court decisions, assist them in understanding the potential tax and super implications of these decisions, and automate or streamline remediation efforts where possible (s. 4).
The obligations and requirements imposed by this Act on the parties involved primarily concern the acquisition, use, and protection of personal data. The ATO must acquire the specified data from the Commonwealth Superannuation Corporation and use it for the stated purposes of identifying impacted individuals and facilitating tax and superannuation remediation (s. 5). Both the ATO and the Commonwealth Superannuation Corporation are required to adhere to the Office of the Australian Information Commissioner’s Guidelines on data matching (s. 6). This includes complying with the Australian Privacy Principles (APPs) and the Privacy Act 1988 to ensure that the use of personal information is consistent with good privacy practice (s. 7). Both entities must also ensure that the data is handled securely and is not disclosed to any unauthorised person (s. 8).
There are no specific offences, penalties, or civil/criminal consequences mentioned in the Gazette notice for breaches of this data-matching program. However, any breaches of the APPs or the Privacy Act could result in significant penalties. For example, under the Privacy Act, the maximum civil penalty for serious or repeated breaches is $2,220,000 for a corporation and $222,000 for an individual (s. 9). Additionally, breaches that involve the misuse of personal information may also lead to criminal charges, with potential penalties including fines and imprisonment (s. 10). The ATO’s privacy policy, which is available online, further outlines the measures in place to protect personal information and the consequences of any breaches (s. 11).