Question:
Data matching programs
Answer:
Recent changes are outlined below:
July 1, 2022
- Loss carry back for eligible companies extended to cover 2023 income year.
- Professional firm profits diverted to the professional's spouse or other associates to be reviewed under new Tax Office guidance.
- Corporate collective investment vehicle legislative regime introduced.
- Temporary full expensing of depreciating assets extended to include 2023 income year.
- Depreciable assets of a company joining a tax consolidation group have tax costs setting rules modified for assets depreciated under temporary full expensing rules.
December 9, 2021
- Reduced Pandemic leave disaster payment of $750 per week made available through to 30 June 2022.
August 5, 2021
- COVID-19 Disaster Payments are non-assessable non-exempt income in 2021 income year and later. Payments phasing out as vaccination rates increase.
July 1, 2021
- New Investment Engagement Service launched for businesses planning significant new investments in Australia.
- Tax Office small business independent review service made permanent for businesses with turnover < $10m, for income tax, GST, exercise, luxury car tax, wine equalisation tax and fuel tax credits. Requested before amended assessment issued.
- Small business income tax offset for individuals increased to provide a reduction of 16% for a tax payable up to $1,000.
- Self-managed superannuation funds can now have six members, increased from four members previously.
July 1, 2021
- Some COVID -19 state and territory business grants received by small and medium enterprises are non-assessable, non-exempt income for 2021 and 2022 income years.
- Certain state, territory and local government financial support for individuals and businesses suffering COVID-19 impacts made exempt where businesses have turnover less than $50 million and only in eligible programs.
March 31, 2021
- JobKeeper payments scheme ended.
October 5, 2020
- Boosting apprenticeship commencements subsidy (up to 50% of apprentice's wages) is assessable income.
June 4, 2020
- Homebuilder grant for new home or substantial renovation construction is not subject to income tax.
April 1, 2020
- COVID-19 cash flow boost payments are not subject to income tax
The Tax Office will exercise its data collection powers to chase up lawyers, visa holders, boat owners, motor vehicle registration holders, credit card holders and other taxpayers. Databases held by other Government departments, banks and insurance companies will be accessed and matched to the Tax Office’s own data holdings.
Data on approximately 1.3 million taxpayers will be taken from Centrelink to check on eligibility for Family Tax Benefit Part B for the 2009, 2010 and 2011 years with comparisons being made to check on incorrect claims for the Dependant Spouse Tax Offset.
Current membership and deregistration from State legal professional associations will yield data on approximately 50,000 members and this will be checked to make sure the lawyers are reporting all of their income.
The Department of Immigration and Citizenship will hand over names, addresses and other details for people on a large number of Visa Subclasses and this will be matched and analysed against Tax Office databases to identify potential refund fraud and other non-compliance.
110,000 insurance records from insurers such as Suncorp Metway, QBE etc will be matched to identify individuals who have insured a boat with a value of $25,000 or more. This information may cause them to be subject to a High Wealth Review.
State WorkCover departments will provide names and addresses of 20,000 individuals which will be used to electronically match and check certain sections of Tax Returns.
State Vehicle Registration departments will be asked to provide data on vehicles valued at $10,000 or more that were purchased during the 2011 year. Matching against the records of 2.7 million individuals will take place and also the Tax Office will try and identify businesses that sell vehicles and falsely report (or not report) those sales.
Credit card data from all of the major banks and credit card organisations relating to approximately 400,000 entities will be collected with particular emphasis on the 2011 income year. The data will be analysed looking for people operating a business in the cash economy who do not report all their cash takings in their Tax Return.
NTAA Voice 211, p. 9
