Property investors, listen up! The Australian Taxation Office (ATO) has announced its latest data-matching program, which will acquire residential investment property loan data from authorized financial institutions. This program will be in effect for the financial years 2021/22 through to 2025/26, and the ATO estimates that records relating to approximately 1.7 million individuals will be obtained each financial year.
So, what does this mean for you as a property investor? The ATO will be gathering a range of data including client identification, account details, transaction details, and property details. This information will be used for a variety of purposes, such as “education and online services” and “data analytics and insights”. However, it will also be used to identify non-compliant individuals, and penalties for non-compliance can be severe.
It’s important to note that this is just one of the 24 data-matching protocols that the ATO has in place. These protocols are designed to help the ATO identify non-compliant taxpayers and ensure that people and businesses are meeting their tax and super obligations. Other data-matching programs include the motor vehicle registry data-matching program, the online selling data-matching program, and the cryptocurrency data-matching program, among others.
If you’re a property investor, it’s essential to make sure you’re meeting all your tax obligations. The ATO’s data-matching program will help them identify non-compliant individuals, so it’s crucial to ensure your tax affairs are in order. Seek professional advice if you’re unsure about your obligations or need help navigating the complexities of property investment tax obligations.
At Hodkinson Accounting, we can help you stay on top of your tax obligations and avoid any potential compliance issues. Contact us today for more information on the ATO’s data-matching program and other data-matching protocols. Stay compliant and keep your tax affairs in order!