Explanatory Memorandum
(Circulated by authority of the Minister for Family and Community Services, Senator the Honourable Jocelyn Newman)Schedule 5 - Amendment of the Taxation Administration Act 1953
1. Summary of proposed changes
The amendments made by this Schedule to the Taxation Administration Act 1953 (the Tax Administration Act), combined with the amendments contained in Schedules 2 and 4, authorise the use of tax file numbers (TFNs) as the primary matching key for data-matching purposes.
2. Background
With the exception of data matching against tax returns conducted under the Data-Matching Program, TFNs cannot be used in Centrelink/Australian Tax Office data matching for compliance purposes. The Australian Tax Office (ATO) currently provides Centrelink with Employment Declaration Form, Prescribed Payment System and Reportable Payment System data on a regular basis, with matching being carried out using identity data (eg name, date of birth etc). There are difficulties in identifying customers who inadvertently or deliberately provide different personal details to the ATO and Centrelink. This measure provides for TFNs to be used as the primary matching key.
Section 8WB of the Tax Administration Act provides the circumstances in which the recording, use or disclosure of another persons tax file number is taken to be lawful.
3. Explanation of the changes
Item 1 of Schedule 5 amends section 8WB of the Tax Administration Act to provide that the use, recording or disclosure of another persons TFN is lawful where that use, recording or disclosure occurs pursuant to section 204A of the Social Security (Administration) Act 1999 .