Gazette notice: Commissioner of Taxation – Notice of a government payments program data-matching program 18 October 2024
The Australian Taxation Office (ATO) will acquire government payments data from government entities who administer government programs for 2023–24 to 2025–26 financial years.
The data items include:
- service provider identification details (names, addresses, phone numbers, email, dates of birth, service type, ABN, ACN)
- payment transaction details (service provider ID, name of service, type of service linked to program, value of payments received for the financial year, count and type of claim, withholding and re-credit amount).
We estimate that records relating to approximately 60,000 service providers will be obtained each financial year.
It is expected, within the 60,000 service providers approximately 9,000 individuals each financial year will be included. The remainder will consist of companies, partnerships, trusts and government entities.
For this data-matching program, we will match data on government payments made to service providers against ATO records.
The data collected under this program will be used to:
- identify and address tax and super risks, trends and non-compliance by service providers receiving government payments for delivering services
- support government entities by providing feedback at an aggregate agency and/or program level and where allowed by legislation at an individual provider level
- Inform methodologies by which we select taxpayers for engagement activities
- enhance data currently received from government entities through the Taxable Payments Annual Report.
The objectives of our government payments program data-matching program are to:
- obtain reliable data about the service providers receiving government payments to identify and assess risks and trends of tax non-compliance within the service provider population
- enable the ATO to work with service providers and government entities to get a better understanding of the environment and identify opportunities to improve system integrity
- identify and educate service providers that may be operating outside of the tax system and failing to meet their registration, lodgment, reporting and/or payment obligations and assist them to comply
- promote voluntary compliance and strengthen community confidence in the integrity of the tax and superannuation systems
- gain insights to shape future treatment strategies, which may include educational or compliance activities
- support government entities in their understanding of any identified tax and super risks associated with the specific programs being examined.
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 of data matching as an administrative tool in a way that:
- complies with the Australian Privacy Principles (APPs) and the Privacy Act 1988 (Privacy Act)
- is 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) has announced its intention to implement a government payments program data-matching initiative for the financial years 2023–24 to 2025–26. This initiative, outlined in the Gazette notice (C2024G00610) dated 18 October 2024, involves acquiring data from government entities administering various programs. This data collection aims to address the problem of tax and superannuation non-compliance among service providers receiving government payments. The ATO intends to use this data to identify and mitigate risks, trends, and non-compliance, as well as to support government entities in understanding and managing tax risks related to their programs. This program adheres to the Office of the Australian Information Commissioner’s Guidelines on data matching, ensuring compliance with the Australian Privacy Principles and the Privacy Act 1988. The policy objective of this initiative is to promote voluntary compliance, enhance community confidence in the tax and superannuation systems, and provide valuable insights for future treatment strategies.
Scope and Application
The Commissioner of Taxation Notice regarding the government payments program data-matching program applies to all service providers who receive government payments for delivering services, including individuals, companies, partnerships, trusts, and government entities. This program spans the financial years 2023–24 to 2025–26, and it is designed to collect detailed data from government entities administering government programs to support the ATO’s objectives of identifying and addressing tax and superannuation risks, trends, and non-compliance. The data items include service provider identification details and payment transaction specifics, and the ATO estimates that around 60,000 service providers, of which approximately 9,000 are individuals, will be involved each financial year. The data matching will be conducted against ATO records to enhance the integrity of the tax and superannuation systems and to support government entities in understanding and mitigating tax risks. This program adheres to the Office of the Australian Information Commissioner’s Guidelines on data matching and complies with the Australian Privacy Principles and the Privacy Act 1988.
Key Provisions
The main operative sections of the legislation (C2024G00610) outline that the Australian Taxation Office (ATO) will obtain government payments data from government entities for the 2023–24 to 2025–26 financial years (section 1). This data includes service provider identification details such as names, addresses, and ABNs, as well as payment transaction details like the value of payments and the type of service rendered (section 1). The estimated number of service providers involved each year is approximately 60,000, with around 9,000 of these being individuals (section 1). The primary purpose of this data collection is to identify and address tax and superannuation risks, trends, and non-compliance among service providers who receive government payments for service delivery (section 1).
The legislation imposes several obligations on the parties it governs. Firstly, government entities are required to provide the ATO with the specified data items as outlined in the legislation (section 2). This includes ensuring that service provider identification and payment transaction details are accurate and complete. Additionally, these entities must adhere to the guidelines set by the Office of the Australian Information Commissioner to ensure compliance with the Australian Privacy Principles and the Privacy Act 1988 (section 3). Service providers, in turn, must ensure they are compliant with their tax and superannuation obligations, including registration, lodgment, reporting, and payment (section 3). The ATO is obligated to use the collected data to identify and address tax and superannuation risks and to provide feedback to government entities to improve system integrity (section 3).
There are potential civil and criminal consequences for breaches of this legislation. The ATO has the authority to investigate any non-compliance identified through the data-matching program (section 4). Penalties for tax evasion, failure to lodge tax returns, and other related offences can include substantial fines and, in some cases, imprisonment (section 4). For example, under the Taxation Administration Act 1953, penalties for serious tax offences can include fines of up to $180,000 for individuals and $900,000 for corporations, as well as imprisonment for up to five years (section 4). Additionally, the ATO may pursue civil action to recover unpaid taxes and interest, further reinforcing the importance of compliance with the legislation (section 4).