Yahoo Finance ATO ramps up data checks to ‘protect honest people and businesses’
The ATO is receiving information from more sources, including side hustle platforms and cryptocurrency providers, which it can use to pick up data mismatches.
Tax time is just around the corner and the Australian Taxation Office (ATO) now has more oversight over your data to make sure you are doing the right thing.
The ATO gets information from a range of third-party sources, including the likes of employers, financial institutions, companies and government agencies, which it uses for data matching.
It has recently expanded its data-matching programs and is now also getting information from side hustle platforms, including Uber and Airbnb. In the past six months, it has also added areas such as cryptocurrency transactions, novated leases and rental bonds.
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An ATO spokesperson told Yahoo Finance that after receiving the data from third-party sources, it then validates, analyses and matches with its own information to identify people or businesses who are not reporting their information correctly.
“Our data-matching programs are designed to increase community confidence in the integrity of the tax and superannuation systems,” the spokesperson said.
“They allow us to reassure the community that we protect honest people and businesses from unfair competition.”
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From July 1, all other sharing economy platforms, including the likes of Uber Eats, Airtasker and storage sharing platforms, will also have to report to the ATO.
The tax office noted its data-matching programs allowed it to pre-fill more information in people’s tax returns, making it “easier for everyone to lodge their tax”. More than 600 million transactions are reported to the ATO annually.
Warning for Uber, Airtasker workers
H&R Block director of tax communication Mark Chapman previously warned Aussies who get work through Uber, Airtasker or any other share economy platforms to take care this tax time.
“The ATO is now receiving reports from many platforms (including Uber), which it can use to highlight data mismatches,” Chapman said.
“Similarly, if you rent out a property (or part of one) through Airbnb and Stayz, you will be under the spotlight.
“The ATO has numerous third-party sources of data which it can use to identify if you are receiving rent and they are on the look-out for mismatches with the tax return data that you report.”
Aussies can start lodging their tax returns from July 1 but the ATO recommends people wait until the end of the month so they don’t miss any important information. The deadline for lodging or engaging a tax agent is October 31, or they risk being hit with a $330 fine.
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