ATO set to target owners of expensive cars on low incomes

The ATO utilises data-matching programs, designed to increase community confidence in the integrity of the tax system.

One such example is owners of luxury cars paying little tax, which will continue to come under ATO scrutiny as it looks to extend its motor vehicle data-matching program for a further three years.

An extension of the data-matching program will see the ATO continue to collect records from motor vehicle registries for the 2019–20, 2020–21 and 2021–22 financial years. This data from all the state and territory motor vehicle registering bodies will identify all motor vehicles sold, transferred or newly registered, where the transfer or market value is $10,000 or more.

Details of individuals involved in the transaction, including their name, address, date of birth and ABN, will also be collected.

Data from the program will be retained for five years. Click here for further infromation on ATO data matching protocols.

The records are designed to help the ATO “identify higher-risk taxpayers with outstanding lodgements and those with undeclared income whose asset holdings may not be proportionate to their declared financial position”.

This information will also assist the ATO in determining whether taxpayers that buy and sell motor vehicles are meeting their tax and super obligations, and if taxpayers are compliant with GST, fringe benefits tax, luxury car tax, fuel schemes and income tax obligations.

The ATO use data collected to:

  • help individuals and businesses understand their tax obligations, including registration, lodgment, reporting and payment
  • protect honest businesses from unfair competition
  • make it easier for individual taxpayers by pre-filling their returns
  • assess the levels of voluntary compliance of individuals and businesses with their tax obligations

Click here for further information regarding the ATO’s data matching program.

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