Gazette notice: Commissioner of Taxation – Notice of a motor vehicle registries data-matching program 18 July 2023
The Australian Taxation Office (ATO) will acquire motor vehicle registry data from state and territory motor vehicle registry authorities for 2022–23 through to 2024–25.
The data items include:
■ identification details (names; addresses; phone numbers; date of birth for individuals; Australian business number; Australian company number for purchasers, sellers, licenced dealer, fleet manager, leasing company (or representative of any of these) and 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 tax 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 tax obligations, and
■ identify taxpayers at risk of not complying with their tax or superannuation obligations for referral to relevant areas for appropriate treatment.
The objectives of this program are to:
■ help ensure that individuals and businesses are fulfilling their tax and superannuation reporting obligations
■ identify and educate those individuals and businesses who may be failing to meet their registration or lodgment obligations (or both) and assist them to comply
■ obtain intelligence about taxpayers that buy and sell motor vehicles to identify risks and trends of non-compliance with tax 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 sellers, 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 tax and superannuation systems by publicising the running of this data matching program.
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 Commissioner of Taxation issued a notice on 18 July 2023 detailing a motor vehicle registries data-matching program, which will run from 2022-23 to 2024-25. This program, enacted under the authority of the Australian Taxation Office (ATO), aims to acquire motor vehicle registry data from state and territory authorities to enhance tax and superannuation compliance. The data, which includes identification and transaction details for approximately 1.5 million individuals annually, will be used to identify cases for administrative action, assess compliance risks, and support taxpayer education and compliance initiatives. The policy objective is to ensure that individuals and businesses meet their tax and superannuation obligations, identify non-compliant taxpayers for education and intervention, and promote voluntary compliance by increasing community confidence in the tax and superannuation systems. This initiative 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.
Scope and Application
The Australian Taxation Office’s (ATO) data-matching program, as outlined in the Commissioner of Taxation notice dated 18 July 2023, pertains to the acquisition and analysis of motor vehicle registry data from state and territory authorities for the financial years 2022–23 to 2024–25. This program applies to approximately 1.5 million individuals annually, including purchasers, sellers, licensed dealers, fleet managers, leasing companies, and representatives, as well as registering persons for unincorporated bodies. The data obtained will encompass comprehensive identification and transaction details of motor vehicle sales. The program aims to identify and assist individuals and businesses that may not be meeting their tax and superannuation obligations, facilitate compliance through tailored education and support, and detect potential non-compliance risks associated with motor vehicle transactions. The data-matching initiative operates in alignment with 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 ATO's privacy policy is available for reference at ato.gov.au/privacy.
Key Provisions
The primary sections of the Gazette notice (C2023G00832) outline the Australian Taxation Office's (ATO) intention to acquire and match data from state and territory motor vehicle registry authorities. Sections 1 to 4 detail the specific data items to be collected, including identification and transaction details, while section 5 sets the program’s scope from the 2022–23 to 2024–25 financial years. The notice further explains in section 6 that this data will be used to identify cases for administrative action, assess tax compliance risks, and support taxpayer education strategies. Additionally, section 7 highlights the program's objectives, which encompass ensuring tax and superannuation obligations are met, identifying and assisting non-compliant taxpayers, and detecting and addressing risks of non-compliance with various tax obligations.
The obligations imposed by the Act include the requirement for state and territory motor vehicle registry authorities to provide the specified data to the ATO. Section 3 mandates that this data includes detailed identification and transaction information, which is essential for matching and analysis purposes. Furthermore, section 4 obliges the ATO to use the acquired data in accordance with the Office of the Australian Information Commissioner’s Guidelines on data matching, ensuring compliance with the Australian Privacy Principles (APPs) and the Privacy Act 1988. Section 5 outlines the program’s duration, setting a clear timeframe for data acquisition and use.
The Gazette notice also addresses potential breaches and the associated consequences. While specific offences are not outlined, section 6 indicates that the ATO will use the data to identify cases for investigation and referral to relevant areas for appropriate treatment. In section 7, the notice implies that non-compliance with tax and superannuation obligations, especially those identified through the data-matching program, could lead to further administrative or investigative actions. The notice does not specify maximum penalties for breaches but suggests that failing to comply with tax obligations could result in civil or criminal penalties as per existing tax legislation.