Gazette notice: Commissioner of Taxation – Notice of a data-matching program
The Australian Taxation Office (ATO) will acquire data from insurance policies for the following assets where the value is equal to or exceeds nominated thresholds.
Asset value thresholds
Asset class | Asset value threshold |
Marine vessels | $100,000 |
Motor vehicles | $65,000 |
Thoroughbred horses | $65,000 |
Fine art | $100,000 per item |
Aircraft | $150,000 |
The data to be collected under notice, for 2015–16 through to 2019–20, includes:
■ policy holder identification details (names, addresses, phone numbers, dates of birth, etc)
■ insurance policy details (policy number, start and end date, asset insured, physical location of the asset, etc).
We estimate that records relating to approximately 350,000 individuals will be obtained each financial year.
The data will be acquired and matched to improve our risk profiling of taxpayers and provide a holistic view of assets and accumulated wealth. The purpose of this program is to ensure that taxpayers are correctly meeting their tax and superannuation obligations in relation to asset transactions and ownership. These obligations may include registration, lodgment, reporting and payment responsibilities.
The objectives of this program are to:
■ promote voluntary compliance and increase community confidence in the integrity of the tax and superannuation systems
■ assist with profiling to provide compliance staff with a holistic view of a taxpayer’s wealth
■ identify possible compliance issues with income tax, capital gains tax, fringe benefits tax, goods and services tax and superannuation obligations
■ determine avenues available to assist in debt management activities
■ gain insights from the data to help to develop and implement treatment strategies to improve voluntary compliance; which may include educational or compliance activities as appropriate
■ identify and educate those individuals and businesses who may be failing to meet their registration and/or lodgment obligations and assist them to comply
■ help ensure that individuals and businesses are fulfilling their tax and superannuation reporting obligations.
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 data-matching as an administrative tool in a way that complies with the Australian Privacy Principles (APPs) and the Privacy Act 1988 (Privacy Act), and are 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 enacted a data-matching program under the Commissioner of Taxation – Notice of a data-matching program, which was introduced in 2019 to address the issue of non-compliance and evasion in tax and superannuation obligations related to asset transactions and ownership. This initiative aims to enhance risk profiling and provide a comprehensive view of taxpayers' assets and accumulated wealth. The primary objectives include promoting voluntary compliance, increasing community confidence in the tax system, and identifying potential compliance issues with various tax obligations. The 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.
Scope and Application
The Commissioner of Taxation's data-matching program, as announced in the gazette notice C2019G01133, is targeted at individuals and entities who hold insurance policies for specified high-value assets. These assets include marine vessels, motor vehicles, thoroughbred horses, fine art, and aircraft, each with defined value thresholds ranging from $65,000 to $150,000. The data collection process, which spans from the 2015–16 financial year to 2019–20, involves acquiring detailed policy holder identification and insurance policy information. This information is used to enhance risk profiling and to ensure taxpayers are meeting their tax and superannuation obligations. The program is applicable on a national scale within Australia and is intended to promote compliance, identify potential issues with various taxes and superannuation, and assist in debt management and educational efforts to improve voluntary compliance. The ATO ensures that this program adheres to privacy guidelines as outlined in the Office of the Australian Information Commissioner’s Guidelines on data matching and the Privacy Act 1988.
Key Provisions
The main operative sections of this legislation, specifically section 1, detail the ATO's intention to acquire data from insurance policies for assets that meet or exceed certain value thresholds (s1). These thresholds are set at $100,000 for marine vessels, $65,000 for motor vehicles and thoroughbred horses, $100,000 per item for fine art, and $150,000 for aircraft (s1). The data to be collected spans from 2015–16 to 2019–20 and includes policy holder identification details and insurance policy specifics (s1). The purpose of this data collection is to enhance risk profiling of taxpayers and ensure compliance with tax and superannuation obligations (s1). This data will help provide a comprehensive view of taxpayers' assets and accumulated wealth (s1).
The obligations imposed by this Act on the ATO are to collect the specified data from insurance policies, ensuring it complies with the Australian Privacy Principles (APPs) and the Privacy Act 1988 (s1). The ATO must use this data to improve risk profiling, assist with profiling to provide a holistic view of a taxpayer’s wealth, and identify possible compliance issues with various tax and superannuation obligations (s1). Furthermore, the ATO is required to develop and implement strategies to improve voluntary compliance, identify individuals and businesses failing to meet their registration and lodgment obligations, and ensure that all taxpayers are fulfilling their tax and superannuation reporting obligations (s1). The ATO must follow the Office of the Australian Information Commissioner’s Guidelines on data matching in Australian Government administration (2014) to ensure data use complies with privacy standards (s1).
Breach of this legislation or failure to comply with the outlined obligations may lead to various civil and criminal consequences. For instance, unauthorised use or disclosure of personal data may result in civil penalties, including fines up to $2.1 million for individuals and $10.5 million for bodies corporate (Privacy Act s13G). Additionally, if the breach involves serious or repeated violations, criminal penalties may apply, including fines up to $420,000 for individuals and $2.1 million for bodies corporate, and/or imprisonment for up to two years (Privacy Act s13H). The ATO is also subject to regulatory oversight and potential sanctions for non-compliance with privacy and data-matching guidelines (Privacy Act s65).