Gazette notice: Commissioner of Taxation – Notice of a government payments program data-matching program 6 October 2021

Overview

The Australian Taxation Office (ATO) has introduced a government payments program data-matching program, as detailed in the Commissioner of Taxation Notice published in the Gazette on 6 October 2021. This program aims to address the gap in compliance with tax and superannuation obligations by service providers receiving government payments for delivering services. By acquiring and matching data from government entities who administer government programs for the 2017-18 to 2022-23 financial years, the ATO seeks to identify, assess, and mitigate risks associated with non-compliance. The primary objective is to obtain reliable data to facilitate the analysis of risks and trends within the service provider population, enabling the ATO to work collaboratively with service providers and government entities to better understand and manage the associated risks. This initiative is aligned with 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. By promoting voluntary compliance and enhancing community confidence in the integrity of the tax and superannuation systems, the program also aims to identify opportunities to improve system integrity and mitigate risks related to tax revenue and government entity expenditure.

Scope and Application

The Commissioner of Taxation, through the Australian Taxation Office (ATO), has announced a data-matching program designed to enhance compliance with tax and superannuation obligations among service providers receiving government payments. This program applies to approximately 36,000 service providers, including individuals, companies, partnerships, trusts, and government entities, who deliver services under government programs for the financial years 2017–18 to 2022–23. The ATO will acquire and match detailed data from government entities administering these programs to identify and address non-compliance, focusing on registration, lodgment, reporting, and payment responsibilities. The geographic reach of this program is national, given the ATO's role as the Commonwealth revenue collector. While the program is designed to ensure compliance with tax laws, it adheres to the Australian Privacy Principles and the Privacy Act 1988 as per the Office of the Australian Information Commissioner’s Guidelines on data matching in Australian Government administration (2014). Further details about the program can be found on the ATO’s website.

Key Provisions

The main operative sections of this legislation, as outlined in the Gazette notice (C2021G00763), involve the Australian Taxation Office (ATO) acquiring government payments data from government entities for the 2017–18 to 2022–23 financial years (section 1). The data obtained includes detailed information about service providers, such as identification details, payment information, and service types, as well as payment details (section 2). This data will be used to identify and address non-compliance with tax and superannuation obligations, including registration, lodgment, reporting, and payment responsibilities (section 3). The obligations imposed by this Act on the parties or entities it governs include the requirement for government entities to provide the specified data to the ATO. Service providers, which include individuals, companies, partnerships, trusts, and other entities, are also subject to obligations to ensure their compliance with tax and super obligations. Government entities must ensure that the data they provide is accurate and complete to facilitate the ATO's data-matching program. Service providers must maintain records and be ready to demonstrate their compliance with tax and super obligations when requested by the ATO (section 4). The legislation does not explicitly outline specific offences, penalties, or civil/criminal consequences for breach in the Gazette notice itself. However, breaches of tax and super obligations can result in a range of penalties under the relevant tax and superannuation laws. These can include fines, interest on unpaid taxes, and potential criminal charges for serious or deliberate non-compliance. The ATO is empowered to take enforcement actions to recover unpaid taxes and penalties. The specific penalties will depend on the nature and severity of the non-compliance, with maximum penalties varying according to the specific laws breached (section 5).