Gazette notice: Commissioner of Taxation – Notice of a data-matching program
The Australian Taxation Office (ATO) will acquire property management data from property management software providers for the 2018-19 through to 2022-23 financial years. The data items include:
Property owner identification details
– unique ID
– individual/ non individual names
– business contact name(s) (if applicable)
– addresses (residential, postal)
– Australian business number (if applicable)
– email address, contact phone numbers
– BSB number, bank account number, bank account name
■ Rental property details
– unique ID
– address
– date property first available for rent
– rental income category
– rental income amount
– rental expense category
– rental expense amount
– net rent amount
■ Property manager details
– business name
– managing agent name (given and surname)
– business addresses (business, postal, internet)
– email address, contact phone numbers
– ABN
– licence number
We estimate that records relating to approximately 1.6 million individuals will be obtained each financial year.
The data will be acquired and matched against ATO records to:
■ inform rental property owners of their taxation obligations as part of an information and education campaign
■ undertake compliance activity to protect the integrity of the tax system and ensure that everyone pays the correct amount of tax
■ inform designs that will make it easier for our clients to interact with the system and get their affairs right
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 reporting obligations and assist them to comply with:
– lodgment of income tax returns
– the correct reporting of rental income and the associated deductions
– capital gains tax obligations for properties used to derive income
■ gain insights from the data that may help to develop and implement treatment strategies to improve voluntary compliance; which may include educational, behavioural or compliance activities of individuals and businesses that lease or let real property
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 Commissioner of Taxation Notice of a Data-Matching Program, enacted in 2021, is a measure introduced to address the gaps in compliance and education regarding tax obligations for individuals and businesses involved in rental properties. This initiative, authorised by the Parliament of Australia, aims to enhance voluntary compliance by ensuring that taxpayers accurately report rental income and related expenses. The program, which will run from the 2018-19 to 2022-23 financial years, seeks to acquire and match property management data from software providers with ATO records, covering approximately 1.6 million individuals each year. The overarching policy objective is to help taxpayers meet their tax and superannuation obligations, particularly in the context of rental income, and to foster better understanding and compliance through educational and behavioural strategies. This initiative aligns with the Office of the Australian Information Commissioner’s Guidelines on data matching and adheres to the Privacy Act 1988 and the Australian Privacy Principles.
Scope and Application
The Commissioner of Taxation, under the Australian Taxation Office (ATO), has announced a data-matching program aimed at acquiring property management data from software providers for financial years 2018-19 through 2022-23. This program applies to property management data, including details of property owners, rental properties, and property managers, and is expected to involve records relating to approximately 1.6 million individuals each financial year. The data will be used to inform rental property owners of their tax obligations, facilitate compliance activities to protect the integrity of the tax system, and inform the design of systems to assist clients in managing their affairs. The program is designed to ensure that individuals and businesses are fulfilling their tax and superannuation reporting obligations, identify those who may be failing to meet these obligations, and provide insights that may lead to improved voluntary compliance through educational, behavioural, or compliance activities. The program adheres to 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. Detailed information about the program can be found on the ATO website, along with the full privacy policy of the ATO.
Key Provisions
The primary sections of the Notice of a data-matching program (C2021G00365) inform us of the ATO’s acquisition and use of property management data (section 1). The data will be collected from property management software providers and include a range of details about property owners, rental properties, and property managers. This data will cover the 2018-19 through to 2022-23 financial years and is expected to pertain to approximately 1.6 million individuals annually (section 1). The main purposes of this data acquisition are to inform property owners of their tax obligations, undertake compliance activities to safeguard the integrity of the tax system, and facilitate better interaction between the ATO and its clients (section 1).
The Notice imposes specific obligations on property management software providers, requiring them to supply the specified data to the ATO. This includes providing detailed identification information about property owners, comprehensive data about rental properties, and information about the property managers themselves. These obligations are intended to support the ATO’s initiatives to ensure tax compliance and educate taxpayers about their obligations (section 2). Additionally, the ATO is required to adhere to the Office of the Australian Information Commissioner’s Guidelines on data matching, ensuring that the data-matching program complies with the Australian Privacy Principles (APPs) and the Privacy Act 1988 (section 3).
Breach of the requirements set forth in this Notice can lead to various consequences. While the Notice itself does not explicitly outline specific penalties, breaches of the Privacy Act or APPs can result in substantial penalties. Under the Privacy Act, both civil and criminal penalties apply for non-compliance. Civil penalties can include pecuniary penalties of up to $2.1 million for a corporation or $210,000 for an individual, depending on the severity and intent of the breach (section 13G, Privacy Act). Criminal penalties can include fines of up to $2.1 million for a corporation or $210,000 for an individual, and in some cases, imprisonment (section 13H, Privacy Act). Additionally, the ATO may face reputational damage and legal challenges from affected parties, further underscoring the importance of strict compliance with the data-matching program’s guidelines and the privacy obligations set out in the Privacy Act.