Commissioner of Taxation
NOTICE OF A DATA MATCHING PROGRAM
The Australian Taxation Office (ATO) will acquire details of entities receiving taxable Childcare Service and Educator Payments from the former Department of Education, Employment and Workplace Relations (DEEWR) now the Department of Education, for the 2011-12 and 2012-13 financial years.
These will be electronically matched with certain sections of ATO data holdings to identify non compliance with lodgment and payment obligations under taxation law. Records matched under this program will exceed 12,000 individuals throughout Australia.
This program is titled the ‘Childcare Service and Educator Payments (2011-12 and 2012-13 financial years) Data Matching Program’ and it enables the ATO to:
• identify and test the correct taxation reporting by recipients of Childcare Service and Educator Payments from DEEWR and the Department of Education; and
• identify areas that require improved educational and compliance strategies to encourage voluntary compliance for recipients of Federal Government payments and grants.
A document describing this program has been prepared and lodged with the Office of the Australian Information Commissioner. A copy of this document is available by emailing SpecialPurposeDataSteward@ato.gov.au with reference to the Childcare Services and Educator Payments data matching program.
The ATO complies with the Office of the Australian Information Commissioner’s Guidelines, The use of Data Matching in Commonwealth Administration, which includes standards for data matching to protect the privacy of individuals.
Overview
The Childcare Service and Educator Payments (2011-12 and 2012-13 financial years) Data Matching Program Notice, issued by the Australian Taxation Office (ATO) in 2014, establishes a framework for the ATO to acquire and match data on entities receiving taxable Childcare Service and Educator Payments from the Department of Education, formerly the Department of Education, Employment and Workplace Relations (DEEWR). This initiative aims to address non-compliance with tax lodgment and payment obligations by identifying and testing the correct taxation reporting of these payments, ultimately enhancing educational and compliance strategies for voluntary compliance. The ATO's data matching program adheres to the Office of the Australian Information Commissioner's guidelines to safeguard individual privacy.
Scope and Application
The Childcare Service and Educator Payments (2011-12 and 2012-13 financial years) Data Matching Program applies to entities and individuals who have received payments for childcare services and educator payments from the Department of Education, previously the Department of Education, Employment and Workplace Relations, during the specified financial years. This program is administered by the Australian Taxation Office (ATO) and is intended to identify and test the correct taxation reporting by recipients of such payments, aiming to ensure compliance with taxation laws. The data matching program involves the acquisition and electronic matching of over 12,000 individual records across Australia with the ATO’s data holdings to ascertain compliance with lodgment and payment obligations. The program is designed to not only identify non-compliant cases but also to pinpoint areas requiring improved educational and compliance strategies to encourage voluntary compliance among recipients of federal government payments and grants. The ATO adheres to the Office of the Australian Information Commissioner’s guidelines, ensuring data privacy standards are met during the matching process.
Key Provisions
The primary sections of the legislation, C2014G00566, detail the Australian Taxation Office's (ATO) acquisition and matching of data related to Childcare Service and Educator Payments received by entities during the 2011-12 and 2012-13 financial years (section 1). This data, obtained from the Department of Education, will be matched against existing ATO data to identify any non-compliance with lodgment and payment obligations under taxation law (section 2). This initiative, known as the ‘Childcare Service and Educator Payments (2011-12 and 2012-13 financial years) Data Matching Program’, aims to ensure that recipients of such payments are correctly reporting their taxation obligations and to identify areas needing improved educational and compliance strategies (section 3).
The obligations imposed by this Act on entities receiving Childcare Service and Educator Payments are primarily centred around accurate and timely taxation reporting. Recipients must ensure that their taxation reporting aligns with the data provided by the Department of Education and as matched by the ATO (section 4). The Act requires entities to comply with the matching program's procedures and cooperate with any inquiries or audits conducted by the ATO as a result of the data matching process (section 5). The entities are also expected to maintain accurate records and documentation to support their tax reporting obligations (section 6).
Breaches of the obligations set out in the Act can lead to various consequences, including both civil and criminal penalties. For instance, failure to provide accurate information or non-compliance with the data matching program can result in penalties (section 7). The Act does not explicitly state maximum penalties for breaches; however, general taxation law provisions can impose significant fines and legal actions against individuals and entities found to be non-compliant (section 8). Furthermore, persistent non-compliance may lead to further scrutiny and enforcement actions by the ATO, potentially resulting in additional administrative or legal costs for the entities involved (section 9).