The Australian Taxation Office (ATO) now receives information from third parties, for each taxpayer, in relation to:
- Wage and salary data;
- Government welfare payments;
- Interest income;
- Dividend income; and
- Private health insurance details.
Tax Compliance – Improving Compliance through Third Party Reporting and Data Matching
From 1 July 2014, the third party reporting regimes will be extended to include:
- The sale of real property;
- Sale of shares and units in unit trusts;
- Sales through merchant debit and credit services; and
- Taxable government grants and other payments
This will also result in more frequent reporting of information throughout the year to the ATO, on an event-based style reporting.
An ATO discussion paper mentions that, for an investment of $80million, the ATO expect to recover an additional $610million from taxpayers because of the third party reporting process.
