How we use lifestyle assets data
The data collected under this program will be used for data analytics and insights purposes.
Data analytics and insights
The data helps us understand a taxpayer’s financial position and may be used in conjunction with other data to identify relevant cases for administrative action, including compliance activities.
Having information about assets prior to compliance activities commencing, helps improve our understanding of a taxpayer's wealth and assists us to apply relevant tax laws to their situation. It also helps us, identify higher risk instances where the financial information returned by a taxpayer does not reflect their accumulated assets.
Previous related programs
The lifestyle assets data-matching program commenced in February 2016 with data collection dating back to the 2013–14 financial year. The ongoing collection of this data has proven useful in enhancing our interactions with taxpayers by providing us with a more comprehensive view of a taxpayer's wealth.
Data providers
We are the matching agency and in most cases, the sole user of the data obtained during this data-matching program.
Data will be provided in relation to general insurance products underwritten, issued, distributed or promoted by the following:
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Eligibility as a data provider
We adopt a principles-based approach to ensure that our selection of data providers is fair and transparent.
Inclusion of a data provider is based on the following principles:
- the data owner or its subsidiary operates a business in Australia that is governed by Australian law
- the data owner provides insurance services
- the data owner provided insurance services for the years in focus.
If the client base of a data provider does not present a risk, or the administrative or financial cost of collecting the data exceeds the benefit the data may provide, the data owner may be excluded from the program.
The data providers for this program will be reviewed annually against the eligibility principles.
Our formal information gathering powers
To ensure statutory requirements are met, we obtain data under our formal information gathering powers. These are contained in section 353-10 of Schedule 1 to the Taxation Administration Act 1953.
This is a coercive power, and data providers are obligated to provide the information requested.
We will use the data for tax and super compliance purposes.
Privacy Act
Data will only be used within the limits prescribed by Australian Privacy Principle 6 (APP6) contained in Schedule 1 of the Privacy Act and in particular:
- APP6.2(b) – the use of the information is required or authorised by an Australian law
- APP6.2(e) – the ATO reasonably believes that the use of the information is reasonably necessary for our enforcement-related activities.
Data elements we collect
Data will be collected for the following classes of assets, where the asset value is equal to or exceeds the nominated thresholds.
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Asset class |
Minimum asset value threshold |
|---|---|
|
Caravans and motorhomes |
$65,000 |
|
Motor vehicles including*: - cars and trucks - motorcycles |
$65,000 |
|
Thoroughbred horses |
$65,000 |
|
Fine art |
$100,000 per item |
|
Marine vessels |
$100,000 |
|
Aircraft |
$150,000 |
*Due to how some data providers classify assets they insure, we may receive data about other types of motor vehicles and assets that are not listed in the motor vehicle asset class above.
We negotiate with the selected data providers individually to obtain data held within their systems. The collected data may contain all or a selection of the fields listed below.
Client identification details – individuals
- given and surname(s) (if more than one name on the policy)
- date(s) of birth
- addresses (residential, postal, other)
- Australian business number (if applicable)
- email address
- contact phone number.
Client identification details – non-individuals
- business name
- addresses (business, postal, registered, other)
- Australian business number
- contact name
- contact phone number
- email address.
Policy details
- insurance brand name
- policy number
- policy inception date
- start date of current policy
- end date of current policy
- last date policy was updated
- total value insured
- purchase price of the property insured
- registration number or identification number of the property
- vehicle details (year, make, model)
- finance or other conditions
- policy cost
- description of the property insured
- primary use type.
Number of records
It is estimated that the total number of policy records obtained will be approximately 650,000 to 800,000 each financial year. We expect 250,000 to 350,000 matched records will relate to individuals. These estimates are based on what we have learnt from previous years’ data.
Data retention
We collect data under this program for all financial years from 2015-16 to 2025-26. We collect this data annually following the end of each financial year.
Due to the number of data providers, we collect data periodically. We work with the data providers and aim to balance our requests against peaks and troughs of demand in a data provider's own business.
The ATO was granted exemption by the Privacy Commissioner to retain the data for 3 years in 2016 and a further 2 years in 2019. The total retention period was for 5 years from the receipt of all verified data files from the data providers. The exemption request was required to satisfy the National Archives of Australia's General Disposal Authority 24 (GDA24) – Records relating to data-matching exercises. GDA24 has now been revoked.
We destroy data that is no longer required in accordance with the Archives Act 1983, and the records authorities issued by the National Archives of Australia, for both general and ATO-specific data.
We will retain each financial year’s data for 5 years from receipt of the final instalment of verified data files from the data providers.
The data is required for this period for the protection of public revenue as:
- retaining data for 5 years enables us to conduct long-term trend analysis and risk profiling of the asset management and disposal practices. This data improved a holistic view of a taxpayer's assets and accumulated wealth.
- It enables us to produce taxpayer profiles of the assets they hold as the data becomes available. This enhances our risk assessment and compliance capability.
- the data enhances our ability to identify taxpayers who may not be complying with their tax and super obligations, which is integral to protecting the integrity of the tax and super systems.
- retaining data for 5 years supports our general compliance approach of reviewing an assessment within the standard period of review, and aligns with the requirements for taxpayers to keep their records.
- the data is also used in multiple risk models, including models that establish retrospective profiles over multiple years aligned with period of review.
While increased data-retention periods may increase the risk to privacy, we have a range of safeguards to manage and minimise this. Our systems and controls are designed to ensure the privacy and security of the data we manage.