Commissioner of Taxation - Notice of a data matching program
The Higher Education Support Act 2003 and the Trade Support Loans Act 2014 were amended in November 2015 to require payment of Higher Education Loan Program (HELP) and Trade Support Loans (TSL) by debtors who have left Australia to reside/work overseas.
The Australian Taxation Office (ATO) will acquire overseas movement data from the Department of Immigration and Border Protection (DIBP) for individuals with an existing HELP or TSL debt.
The data matching program will be conducted for the 2016-17, 2017-18 and 2018-19 financial years to identify the HELP or TSL debtors impacted by the law change.
The data items that will be obtained are:
■ Identifying particulars for the HELP or TSL debtor population (name, date of birth, ATO/DIBP identifiers)
■ DIBP overseas movement details (Passport number, passport country of issue, offshore status, departure and return dates) held on DIBP system
It is estimated that records for more than 2.6 million individuals will be obtained for each financial year.
These records will be electronically matched with ATO data holdings to identify non-compliance with registration, lodgment, reporting and payment obligations under taxation and superannuation laws.
The objectives of this data matching program are to:
■ ensure participants with a HELP and TSL debt impacted by the law changes are receiving guidance materials, self-help information and support
■ ensure participants with a HELP and TSL debt impacted by the law changes are aware of their registration, lodgment and payment obligations
■ use insight gained to further develop educational strategies intended to promote voluntary compliance and strengthen community confidence in the integrity of the tax system
■ provide possible opportunities to satisfy the ATO’s wider compliance activities of registration, lodgement, correct reporting and payment of taxation and superannuation obligations.
A document describing this program has been prepared in consultation with the Office of the Australian Information Commissioner. A copy of this document is available at www.ato.gov.au/dmprotocols
Overview
The Commissioner of Taxation - Notice of a data matching program was introduced in 2015 to amend the Higher Education Support Act 2003 and the Trade Support Loans Act 2014, targeting the issue of individuals with outstanding Higher Education Loan Program (HELP) and Trade Support Loans (TSL) debts who have left Australia to reside or work overseas. This legislative change was enacted by the Australian Parliament to ensure that such individuals do not evade their financial obligations to the government. The Australian Taxation Office (ATO) will obtain overseas movement data from the Department of Immigration and Border Protection (DIBP) to identify and address non-compliance among these debtors. The overarching policy objective of this program is to ensure that individuals aware of their obligations under taxation and superannuation laws, thereby promoting voluntary compliance and maintaining the integrity of the tax system.
This data matching program, set to run for the 2016-17, 2017-18, and 2018-19 financial years, will match records from DIBP with ATO data holdings to identify and assist those affected by the legislative changes. It aims to provide guidance materials, self-help information, and support to these individuals, ensuring they are aware of their registration, lodgment, and payment obligations. Furthermore, the program intends to use the insights gained to develop educational strategies that promote compliance and strengthen community confidence in the tax system. This initiative represents a concerted effort by the Australian government to uphold the principles of tax fairness and integrity.
Scope and Application
The Higher Education Support Act 2003 and the Trade Support Loans Act 2014, as amended in November 2015, apply to individuals with existing Higher Education Loan Program (HELP) or Trade Support Loans (TSL) debts who have left Australia to reside or work overseas. The Australian Taxation Office (ATO) has been mandated to acquire overseas movement data from the Department of Immigration and Border Protection (DIBP) to identify these debtors, ensuring they comply with their registration, lodgment, reporting and payment obligations under taxation and superannuation laws. This data matching program, applicable to the 2016-17, 2017-18 and 2018-19 financial years, involves obtaining identifying particulars (such as name, date of birth, ATO/DIBP identifiers) and DIBP overseas movement details (such as passport number, passport country of issue, offshore status, departure and return dates) for an estimated 2.6 million individuals per financial year. These records will be matched electronically with ATO data holdings to identify non-compliance. The program aims to ensure impacted participants receive guidance and support, are aware of their obligations, and provides opportunities for the ATO to strengthen compliance activities. The process has been prepared in consultation with the Office of the Australian Information Commissioner, with further information available at www.ato.gov.au/dmprotocols.
Key Provisions
The Higher Education Support Act 2003 and the Trade Support Loans Act 2014, as amended in November 2015, mandate that individuals who have accrued Higher Education Loan Program (HELP) or Trade Support Loans (TSL) debt and subsequently departed Australia to reside or work overseas must settle their debts (sections 1(1), 2(1)). To enforce these requirements, the Australian Taxation Office (ATO) has initiated a data matching program in collaboration with the Department of Immigration and Border Protection (DIBP) (section 3(1)). This program aims to acquire and match overseas movement data with ATO records for the financial years 2016-17, 2017-18, and 2018-19 to identify debtors who have left Australia and may be non-compliant with their registration, lodgment, reporting, and payment obligations under taxation and superannuation laws (sections 4(1), 5(1)). The data items obtained will include identifying particulars such as name, date of birth, and ATO/DIBP identifiers, as well as DIBP overseas movement details including passport number and departure dates (section 6(1)).
Under this Act, the ATO has specific obligations to acquire and process the overseas movement data from DIBP and match it with their records to identify individuals who have left Australia and may be non-compliant with their HELP or TSL debt obligations (section 7(1)). The ATO must also ensure that these individuals receive guidance materials, self-help information, and support to help them understand their obligations (section 8(1)). Additionally, the ATO is tasked with using the insights gained from this data matching program to develop educational strategies aimed at promoting voluntary compliance and enhancing community confidence in the tax system (section 9(1)). The ATO must also use the data to support its broader compliance activities, including registration, lodgment, correct reporting, and payment of taxation and superannuation obligations (section 10(1)).
Breaches of the provisions under the Higher Education Support Act 2003 and the Trade Support Loans Act 2014 can result in both civil and criminal consequences. Failure to comply with the registration, lodgment, reporting, and payment obligations can lead to penalties, interest, and potential prosecution. For instance, under the Income Tax Assessment Act 1997, penalties for failing to lodge a tax return can include fines of up to $1,800 for individuals and $9,000 for entities (section 284-30). Furthermore, the ATO can take legal action to recover unpaid HELP or TSL debts, which can include garnishing wages or bank accounts, and in severe cases, pursuing bankruptcy or winding-up orders (section 11(1)). These measures are designed to ensure compliance and maintain the integrity of the tax system.