What does the ATO know about you and what do they do with this information?
A very comprehensive data matching program has been in place at the ATO for a number of years and it is getting more sophisticated each year. This is what the ATO already knows about you and what they do with the information:
|Type of information||What the ATO does with it|
|Wages and superannuation||With the widespread adoption of single touch payroll, your payroll data is now reported to the ATO each pay period and will pre-populate in your tax return.|
|Investment income||The ATO knows your interest and dividends received and uses this to pre-populate your tax return.|
|Purchases and sales of any properties||The ATO knows when you have purchased or sold a property so they can work out if you need to include a Capital Gain or a GST event on your return.|
|Purchases and sales of cars above $10,000||The information the ATO receives allows them to determine if the income and deductions are valid and whether you should be reporting GST. It also flags with the ATO as to whether you need to report Fringe Benefits Tax on a car owned by a business.|
|Rental bonds lodged||The ATO uses property matching data to identify if your rental property is a real rental property.|
|Ride Sharing Data (eg Uber)||If you are a ride share operator (eg Uber driver) that you are reporting your GST and income correctly.|
|Merchant account data –
eg EFTPOS data from credit and debit cards and other platforms
|If you run a business and collect monies from customers from an EFTPOS machine or certain online platforms, the ATO may look at your return to ensure the sales you report is at least the amount of the EFTPOS sales plus a reasonable amount for cash.|
|Property share economy data –
|If you rent your property through a platform such as AirBNB, the ATO will know this and expect an amount of rental income to be shown on your tax return.|
|Crypto Currency||The ATO has access to the same blockchain, so they do obtain data on crypto transactions looking for gains and losses to be accurately reported on your return.|
|Online selling businesses
|If you sell in excess of $12,000 on an online platform the ATO may ask if you are running a business and need to report income.|
|Lifestyle assets in excess of $50,000 reported on your insurance policies (boats, luxury cars, horses, fine art, aircraft etc).||The ATO is looking for excessive assets that you own where you haven’t reported sufficient income on your return. For example, if you own a $1M boat, but you only report $100,000 on your tax return, this may appear unrealistic.|
At The Macro Group, we receive a number of phone calls each year about these types of items from the ATO. Our experienced team work collaboratively with clients and the ATO to achieve a positive outcome.
Please call us on 07 3844 5555 to discuss with a Macro team member today.