Gazette notice: Commissioner of Taxation – Notice of a data-matching program
The Australian Taxation Office (ATO) will acquire data on Australian sales made through online selling platforms for 2018–19 through to 2022–23 financial years. The collected data may contain all or a selection of the fields listed below.
Client identification details – individuals
■ Given and surname(s) (if more than one name on the account)
■ Date(s) of birth
■ Account holders' addresses (residential, postal, other)
■ Australian business number (if applicable)
■ Email address
■ Contact phone number(s)
Client identification details – non-individuals
■ Business name
■ Addresses (business, postal, registered, other)
■ Australian business number
■ Contact name
■ Email address
■ Contact phone number(s)
Account details
■ Account name
■ Account identification number
■ Account registration date
■ Account registration type
■ Store type
■ Seller status
■ IP Address
■ Seller's linked PayPal account
■ Number of annual sales transactions
■ Value of annual sales transactions
■ Number of monthly sales transactions
■ Value of monthly sales transactions
We estimate the total number of account records obtained to be between 20,000 and 30,000 each financial year. We expect around half of the matched accounts will relate to individuals These records will be electronically matched with ATO data holdings to identify non-compliance with registration, lodgment, reporting and payment obligations under taxation laws.
The objectives of the online selling data-matching program are to:
■ promote voluntary compliance and increase community confidence in the integrity of the tax and superannuation systems
■ gain insights from the data to help develop and implement engagement strategies to improve voluntary compliance, which may include educational or compliance activities
■ identify and educate those individuals and businesses who may be failing to meet their registration or lodgment obligations and assist them to comply
■ help ensure individuals and businesses are fulfilling their tax and superannuation 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 Commissioner of Taxation, under the provisions of the Taxation Administration Act 1953, has introduced a data-matching program aimed at addressing the issue of non-compliance in tax and superannuation obligations among individuals and businesses using online selling platforms. This initiative was established to gather and scrutinise data from these platforms for the financial years 2018–19 to 2022–23, with the goal of promoting voluntary compliance and enhancing community confidence in the tax system. By electronically matching the acquired data with existing ATO records, the program seeks to identify discrepancies, educate non-compliant entities, and ensure adherence to tax laws. The program adheres to the guidelines set forth by the Office of the Australian Information Commissioner, ensuring compliance with the Australian Privacy Principles and the Privacy Act 1988, thereby maintaining good privacy practice.
Scope and Application
The Commissioner of Taxation, through the Australian Taxation Office (ATO), has announced a data-matching program aimed at ensuring compliance with taxation laws, particularly for sales made through online selling platforms. This program applies to both individuals and non-individual entities that have sold goods or services in Australia across the financial years from 2018–19 to 2022–23. The scope includes the collection and analysis of extensive client identification details and account data, such as names, addresses, business numbers, and transaction values, from an estimated 20,000 to 30,000 accounts each financial year. The program operates nationally, aligning with the ATO's jurisdiction over taxation matters in Australia. The collected data will be matched against existing ATO records to identify potential non-compliance with registration, lodgment, reporting, and payment obligations under taxation laws. The program adheres to the guidelines set forth by the Office of the Australian Information Commissioner, ensuring compliance with privacy laws, including the Australian Privacy Principles and the Privacy Act 1988. Detailed information about the program is available on the ATO’s website.
Key Provisions
The primary operative sections of the legislation (C2020G00939) pertain to the acquisition and use of data from online selling platforms for the 2018–19 to 2022–23 financial years. Specifically, section 1 outlines the types of client identification details and account information that the Australian Taxation Office (ATO) will collect, including personal and business identification, contact information, and sales transaction data. These details are meant to be used for matching with ATO data holdings to identify non-compliance with tax and superannuation obligations. Section 2 states the objectives of the data-matching program, which include promoting voluntary compliance, gaining insights for developing engagement strategies, identifying non-compliant individuals and businesses, and ensuring tax and superannuation obligations are met. Section 3 references the Office of the Australian Information Commissioner’s Guidelines on data matching to ensure the program complies with the Australian Privacy Principles (APPs) and the Privacy Act 1988.
The obligations imposed on parties by this Act are primarily on the ATO and the online selling platforms. The ATO must collect the specified data from these platforms for the stated financial years and match it with their existing data holdings to identify any non-compliance issues. They are also required to use the insights gained from the data to develop and implement strategies to improve voluntary compliance and assist non-compliant individuals and businesses in meeting their obligations. The online selling platforms must provide the requested data, which includes personal and business identification details, contact information, and sales transaction data. These platforms must ensure that the data they provide is accurate and complete, facilitating the ATO’s ability to identify and address non-compliance.
Under this legislation, there are no specific offences or penalties outlined for breach. However, the consequences of non-compliance with tax and superannuation obligations could include civil or criminal penalties as stipulated under the relevant taxation laws. For example, failure to lodge a tax return or report income can result in penalties of up to 75% of the tax owed, while more serious offences such as fraud can lead to substantial fines and imprisonment. Additionally, the Privacy Act 1988 provides for both civil and criminal penalties for misuse of personal information, which the ATO must adhere to when handling the collected data. The ATO’s privacy policy, available at ato.gov.au/privacy, outlines the measures in place to protect personal information and the consequences for breaches of privacy.