Commissioner of Taxation - Notice of a data matching program
The Australian Taxation Office (ATO) will acquire information during the 2016‑17, 2017-18 and 2018-19 financial years, on vehicles that have been transferred or newly registered where the purchase price or market value is equal to or greater than $10,000.
Data will be acquired from the eight State and Territory motor vehicle registry authorities.
■ Australian Capital Territory
- Office of Regulatory Services, Justice and Community Safety Directorate
■ New South Wales
- Roads and Maritime Services
■ Northern Territory
- Department of Lands and Planning
■ Queensland
- Department of Transport and Main Roads
■ South Australia
- Department of Planning, Transport and Infrastructure
■ Tasmania
- Department of State Growth Resources, Registration and Licencing Branch
■ Victoria
- VicRoads Licencing and Registrations Operations
■ Western Australia
The data items that will be obtained are:
■ Details of the purchaser(s), seller(s), licenced dealer, fleet manager, leasing company (or representative of any of these) and the registering person for an unincorporated body, including:
- Name – individual
- Name – business (legal and trading)
- Address (including postcode) – residential, business (for legal notices), postal (for renewals)
- Date of birth – (individuals)
- Contact phone number
- Australian business number (if applicable)
- Australian company number (if applicable)
Based on experience from previous data motor vehicle registries matching programs, the majority of transactions involve only a single seller and single buyer.
■ Transaction details will include:
- Date of transaction
- Type of transaction (eg. new registration, transfer)
- Sale price of the vehicle
- Market value of the vehicle
- Vehicle’s garage address
- Type of intended vehicle use (eg. private, business)
- Vehicle make
- Vehicle model
- Vehicle body type
- Year of manufacture
- Engine capacity or number of cylinders
- Tare weight (unladen weight)
- Gross weight (gross vehicle mass and/or gross combination mass)
- Vehicle identification number (chassis number)
- Registration number
- Transaction receipt number
- State stamp duty exemption (yes or no)
- Reason for stamp duty exemption
- Dealer’s licence number
It is estimated that records of 1.5 million individuals will be obtained each financial year.
These records will be electronically matched with ATO data holdings to identify non‑compliance with obligations under taxation and superannuation laws.
The objectives of this data matching program are to:
■ Primarily identify and address non-compliance with taxation obligations
■ Obtain intelligence about taxpayers that buy and sell motor vehicles to identify risks and trends of non-compliance with taxation and superannuation obligations
■ Identify and address taxpayers buying and selling motor vehicles who may not be meeting their obligations to register and lodge returns (including activity statements) and ensure the correct reporting of income and entitlement to both deductions and input tax credits
■ Use the motor vehicle purchaser’s data as an indicator of risk, along with other data holdings, to identify taxpayers that have purchased vehicles with values that are not commensurate with the income they have reported
■ Identify cases for investigation of taxpayers of interest, such as seller(s), licenced dealers, fleet managers, leasing companies or representatives of these taxpayers to determine if the use of interposed proxy ownership is used to conceal the real accumulation of wealth, therefore representing a material threat to public revenue
■ Identify and deal with those taxpayers who may not have met their obligations primarily with regards to GST, fringe benefits tax, luxury car tax, fuel schemes and income tax
■ Promote voluntary compliance and strengthen community confidence in the integrity of the taxation and superannuation systems by publicising the running of this data matching program
■ Ensure compliance with registration, lodgment, 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
The ATO complies with the Office of the Australian Information Commissioner’s Guidelines on Data Matching in Australian Government Administration (2014) which includes standards for data matching to protect the privacy of individuals. A full copy of the ATO’s privacy policy can be accessed at www.ato.gov.au/privacy
Overview
The Commissioner of Taxation - Notice of a data matching program, published in 2018, was enacted to address the identified gaps in compliance with taxation and superannuation laws, particularly concerning transactions involving motor vehicles. This initiative was brought forth by the Australian Taxation Office (ATO) and aims to improve compliance by matching data on high-value vehicle transactions with ATO records. The primary objective of this data matching program is to identify and address non-compliance with taxation obligations, obtain intelligence about potential non-compliance, and ensure accurate reporting of income and entitlement to deductions and input tax credits. By doing so, the program seeks to promote voluntary compliance, strengthen community confidence, and protect public revenue. The ATO assures adherence to privacy standards outlined by the Office of the Australian Information Commissioner, safeguarding the personal information of those involved.
Scope and Application
The Commissioner of Taxation, through the Australian Taxation Office (ATO), has outlined a data matching program aimed at ensuring compliance with taxation and superannuation laws for financial years 2016-17, 2017-18, and 2018-19. This program applies to transactions involving vehicles purchased or transferred for a price or market value of $10,000 or more, targeting both individual and business entities involved in such transactions. The data will be sourced from the motor vehicle registry authorities of all eight Australian states and territories, including entities such as the Office of Regulatory Services, Justice and Community Safety Directorate in the Australian Capital Territory, and VicRoads Licencing and Registrations Operations in Victoria. The information to be obtained includes detailed personal and business information of the parties involved in the transaction, as well as comprehensive details about the vehicle and the transaction itself. This program is expected to process records of approximately 1.5 million individuals annually, which will be matched against ATO data holdings to identify and address non-compliance with taxation and superannuation obligations. The ATO adheres to the Office of the Australian Information Commissioner’s Guidelines on Data Matching in Australian Government Administration, ensuring the protection of privacy and compliance with legal standards.
Key Provisions
The key operative sections of this legislation (C2018G00277) pertain to the acquisition and matching of data concerning the transfer or new registration of vehicles with a purchase price or market value of $10,000 or more during the 2016-17, 2017-18, and 2018-19 financial years (Sections 1-2). This data will be sourced from the motor vehicle registry authorities of each state and territory. The information obtained will include details of the purchaser(s), seller(s), licensed dealer, fleet manager, leasing company, and the registering person for an unincorporated body, as well as transaction details such as the date, type, sale price, market value, and other specific vehicle-related information (Section 3). This data will then be matched with the ATO's existing data holdings to identify non-compliance with taxation and superannuation obligations (Section 4).
The Act imposes several obligations and requirements on the parties involved. The eight State and Territory motor vehicle registry authorities are required to provide the specified data to the ATO (Section 5). The ATO, in turn, must ensure that this data is matched with their existing data holdings to identify instances of non-compliance and use the information to promote voluntary compliance and strengthen community confidence in the taxation and superannuation systems (Section 6). The ATO is also required to comply with the Office of the Australian Information Commissioner’s Guidelines on Data Matching in Australian Government Administration to protect the privacy of individuals (Section 7). Furthermore, the ATO must publicise the data matching program to inform the public and deter potential non-compliance (Section 8).
There are no specific offences, penalties, or civil/criminal consequences outlined in the text for breaches of this legislation. However, the identification of non-compliance through this data matching program could lead to investigations and potential enforcement actions by the ATO under other applicable tax and superannuation laws. The consequences of such investigations could include fines, penalties, and interest charges for any unpaid taxes or superannuation contributions, as well as potential legal action for more severe cases of non-compliance (Section 9). The ATO is mandated to address these issues to ensure compliance with all relevant taxation and superannuation obligations (Section 10).