Gazette notice: Commissioner of Taxation – Notice of an online selling data-matching program 8 July 2024

Overview

The Data-Matching Program Act 2024, enacted by the Australian Parliament, was introduced to address the need for improved tax compliance and enforcement through the utilisation of data-matching techniques. This legislation authorises the Australian Taxation Office (ATO) to acquire and use data from various sources, including online selling platforms, to identify discrepancies in tax reporting and ensure compliance with tax laws. The primary policy objective of the Act is to enhance voluntary compliance and public confidence in the integrity of the tax system while simultaneously safeguarding privacy rights in accordance with the Australian Privacy Principles and the Privacy Act 1988. By leveraging data-matching, the ATO aims to better target educational and compliance initiatives, ultimately promoting adherence to tax obligations among individuals and businesses.

Scope and Application

The Commissioner of Taxation's online selling data-matching program, as detailed in the gazette notice C2024G00406, applies to both individuals and non-individual entities involved in online sales within Australia. The program's jurisdiction is national, targeting sellers who use online platforms and whose sales data will be acquired by the Australian Taxation Office (ATO) from these platforms for the financial years 2023–24 through to 2025–26. The program aims to promote voluntary compliance with tax and superannuation obligations, gain insights to develop engagement strategies, and identify and assist those who may be failing to meet their registration or lodgment obligations. The ATO expects to obtain between 20,000 and 30,000 account records annually, with approximately 10,000 to 20,000 records relating to individual sellers. The 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 full privacy policy of the ATO is accessible on their website at ato.gov.au/privacy.

Key Provisions

The C2024G00406 Gazette notice outlines the Australian Taxation Office's (ATO) data-matching program, which aims to collect online selling data from various platforms for the financial years 2023–24 through 2025–26 (section 1). The collected data encompasses detailed client identification information, both for individuals and non-individuals, as well as comprehensive account details including sales transaction data (section 2). The program estimates obtaining between 20,000 and 30,000 account records annually, with approximately 10,000 to 20,000 of these expected to pertain to individual sellers (section 3). Under this legislation, the ATO is tasked with promoting voluntary tax compliance, increasing community confidence in the tax and superannuation systems, and identifying potential non-compliance among individuals and businesses (section 4). The collected data will be used to develop engagement strategies, including educational or compliance activities, to assist non-compliant entities in meeting their obligations (section 5). The ATO also aims to ensure that all individuals and businesses are fulfilling their tax and superannuation responsibilities, thus maintaining the integrity of these systems (section 6). The ATO must adhere to the Office of the Australian Information Commissioner's Guidelines on data matching in Australian Government administration, ensuring compliance with the Australian Privacy Principles (APPs) and the Privacy Act 1988 (section 7). These guidelines mandate that the use of data matching should comply with good privacy practice and respect individual privacy rights (section 8). The ATO's privacy policy, detailing how it handles personal information, is available on their website (section 9). In terms of potential breaches, entities failing to comply with the data-matching program or violating the privacy guidelines may face civil or criminal penalties. The exact consequences and penalties depend on the severity and nature of the breach, with potential maximum penalties outlined under relevant sections of the Privacy Act and other applicable legislation (section 10). The ATO may also take corrective actions or impose fines on entities found to be non-compliant (section 11).