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5 Feb 2025

ATO data-matching in 2025

Data-matching is becoming increasingly powerful and the Australian Taxation Office (ATO) are expanding their efforts, with the ability to cross-reference financial records from banks, employers, government agencies, digital platforms and other third parties to identify discrepancies. As such, we are seeing an increase in activity in this space.

 What this means for you

With greater oversight, it’s essential to ensure the records you maintain are accurate and complete. Here are some key areas where data matching applies:

Income reporting: The ATO matches employer and bank-reported income with your tax return.

Property transactions: The ATO cross-checks property sales, purchases, and rental income with data from land titles offices, property managers, and online rental platforms.

Superannuation contributions: Employer-reported super payments are compared with super fund records to detect unpaid contributions.

Investments & capital gains: Share trades, dividends, and cryptocurrency transactions are reported by brokers and exchanges.

Government benefits: Centrelink and Medicare payments are reviewed for compliance.

Digital platforms: Earnings from ride-sharing, short-term rentals, and online sales are monitored.

Insurance and asset ownership: The ATO uses insurance data to identify high-value assets (e.g., luxury cars, boats, and artwork) that may not align with declared income.

 Some examples

Rental income: A landlord renting out their property on Airbnb failed to declare all earnings. The ATO can match transaction data from the platform and bank deposits, leading to a tax reassessment.

Cryptocurrency trading: A taxpayer made significant profits trading crypto but did not report them. The ATO can obtain transaction data from crypto exchanges, resulting in compliance action.

Investment disposals: A taxpayer sold shares and did not declare capital gains. The ATO can cross-reference trading platforms and flag the omission.

Insurance and asset ownership: A taxpayer reports modest earnings but holds multiple high-value car insurance policies. The ATO may question whether undeclared income was used to purchase these assets.

More information

For more details, visit the ATO’s data matching page. If you have any specific queries you would like to discuss, please contact your Ipsum Advisor.