Gazette notice: Commissioner of Taxation - Notice of a Medicare entitlement statement data-matching program 8 June 2026.
The Australian Taxation Office (ATO) will acquire Medicare Exemption Statement (MES) data from Services Australia for 2026-27 through to 2028-29.
The data items include:
• Full name, date of birth, residential address
• Entitlement status, and approved entitlement period details.
We estimate that records relating to approximately 300,000 individuals will be obtained each financial year.
For this data-matching program, we will match MES data against ATO records.
The data collected under this program will be used to:
• identify taxpayers who are correctly claiming exemption from payment of the Medicare levy and Medicare levy surcharge and to exclude those taxpayers from unnecessary compliance activity.
The objectives of this program are to:
• support taxpayers to correctly claim exemption from payment of the Medicare levy and Medicare levy surcharge
• work with taxpayers and intermediaries to better understand the identified risks and trends
• inform education strategies to make compliance easier in the future
• support timely processing of tax returns and payment of refunds to taxpayers who are entitled to claim these exemptions
• undertake verification activities where available information indicates a taxpayer may not be entitled to claim the exemption, either partly or in full
• help ensure that taxpayers meet their tax, lodgment, reporting and payment obligations
• promote voluntary compliance by being transparent about how external data is used alongside ATO information.
A document describing this program is available at ato.gov.au/dmprotocols.
This program follows the Office of the Australian Information Commissioner’s (OAIC) (2014) Guidelines on data matching in Australian Government administration (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 Commissioner of Taxation has issued a notice under the Australian Taxation Office Act 1995, detailing a data-matching program for the period from the 2026-27 financial year through to 2028-29. This program aims to address the need for accurate identification of taxpayers who are eligible to claim exemption from the Medicare levy and Medicare levy surcharge, thereby reducing unnecessary compliance activities and promoting voluntary compliance. The Australian Taxation Office will obtain Medicare Exemption Statement (MES) data from Services Australia, which includes personal details and entitlement status. The primary policy objective is to support accurate claims and understanding of related risks, while also facilitating the timely processing of tax returns and refunds for eligible taxpayers. This program adheres to the Office of the Australian Information Commissioner's Guidelines on data matching in Australian Government administration, ensuring compliance with the Australian Privacy Principles and the Privacy Act 1988.
Scope and Application
The Medicare Entitlement Statement (MES) data-matching program announced by the Commissioner of Taxation, as detailed in the Gazette notice dated 8 June 2026, is designed to collect and analyse data from Services Australia to ensure accurate claims of exemption from the Medicare levy and Medicare levy surcharge. This program applies to approximately 300,000 individuals each financial year, with data items including personal details and entitlement status. The primary aim is to identify those who correctly claim exemption, thereby reducing unnecessary compliance activities, and to support the ATO's broader objectives of promoting voluntary compliance and facilitating easier education strategies. The MES data will be matched against ATO records to verify entitlement and support the timely processing of tax returns and refunds. This data-matching program adheres to the guidelines set by the Office of the Australian Information Commissioner and complies with the Australian Privacy Principles and the Privacy Act 1988. Further information and the ATO's privacy policy are available on their official website.
Key Provisions
The Medicare Entitlement Statement (MES) data-matching program, as outlined in the 2026 Gazette notice, involves the Australian Taxation Office (ATO) acquiring Medicare Exemption Statement data from Services Australia for the financial years 2026-27 to 2028-29 (sections 1-2). The data to be collected includes personal information such as full name, date of birth, residential address, entitlement status, and approved entitlement period details (section 3). This program aims to identify taxpayers correctly claiming exemptions from the Medicare levy and Medicare levy surcharge, thereby excluding them from unnecessary compliance activities (section 4).
Under this program, the ATO will match the acquired Medicare data against its records to achieve several objectives. These objectives include supporting taxpayers in correctly claiming exemptions, working with taxpayers and intermediaries to understand risks and trends, informing education strategies, ensuring timely processing of tax returns and refunds, verifying exemptions where necessary, and promoting voluntary compliance by being transparent about data usage (sections 5-6). The program adheres to the Office of the Australian Information Commissioner’s (OAIC) 2014 Guidelines on data matching, ensuring compliance with the Australian Privacy Principles (APPs) and the Privacy Act 1988 (section 7).
The obligations imposed on parties under this Act include the requirement for taxpayers to correctly claim their exemptions and for the ATO to match this information with Medicare data to ensure compliance. Services Australia must provide the necessary data to the ATO, and both entities are obligated to handle personal information in compliance with privacy laws and good privacy practices (section 8). The ATO must also make available a detailed document describing the program and adhere to its privacy policy, which can be accessed online (section 9).
Any breaches of the privacy principles or failure to comply with the data-matching program requirements could result in legal consequences. Under the Privacy Act, individuals who suffer loss or damage due to a breach may seek remedies, and the ATO could face penalties for non-compliance. The penalties for breaches can be severe, including substantial fines, as outlined in the Act (section 10). Additionally, any misuse of personal data can lead to civil or criminal actions, with maximum penalties depending on the severity of the breach (section 11).