The ATO has a responsibility to the community to ensure that everyone pays their fair share of tax under the law. Each year the ATO cross references information reported in tax returns against transactions reported by other third parties. Information that the ATO match includes:
- investment income (interest, dividends and managed funds) from banks, financial institutions and investment bodies
- employment information and welfare payments
- property and share dividends and disposals
- employee share schemes
- foreign transactions (foreign sourced dividends and interest) and international funds transfers
- superannuation information and personal contributions
- health insurance policies, including the level of cover held by an individual
The ATO will be contacting taxpayers who have apparent discrepancies in the information they have reported in their tax returns. Where necessary the ATO will amend their returns.
Data matching is used by the ATO to also identify those who are either not lodging returns or who are not reporting at all. Where people have not lodged, the ATO will issue assessments based on information they currently hold and impose penalties as appropriate.
The ATO exchanges data with a number of institutions, organisations and Australian Government Agencies including:
- Centrelink
- Child Support Agency
- Department of Immigration and Citizenship
- Australian Securities and Investment Commission (ASIC)
- Medicare Australia, which provides data that enables it to administer the 30 per cent health insurance incentives rebate
- AUSTRAC, which provides information on banking transactions over $10,000
- Share Registries (including data holdings of ASX Limited, Computershare Limited, Link Market Services Limited, Advanced Share Registry Services Ltd and Registries Limited), which provide information on share transactions for CGT purposes
- State and Territory Motor Vehicle Registering Bodies (including RTA NSW, Queensland Transport, Vic Roads etc.), which provide information on all motor vehicles sold, transferred or newly registered in the financial year where the transfer and/or market value is $10,000 or greater
- State and Territory Revenue Offices, which provide information on residential and commercial property purchases and disposals
- Banks, which provide information for credit and debit card sales made by Australian businesses. This data is matched against taxpayer records to identify those participating in the cash economy, and who are potentially skimming some or all of their cash takings or in other ways not reporting all of their income
- E-Bay Australia & Trading Post which provide information on businesses that sell goods online with a value>$20,000.
