The Australian Taxation Office (ATO) continues to broaden and improve its data-matching programs. In this light, they have recently announced a new program focusing on high-value “lifestyle” assets and property owners.
These programs will use insurance company records and property management data to ensure taxpayers meet their obligations.
Lifestyle Assets Under the Microscope
The lifestyle assets data-matching program will target owners of specified classes of assets such as private aircraft, motor vehicles, caravans and motorhomes, boats, fine art, and racehorses.
The ATO says that they aim to review between 650,000 and 800,000 insurance policy records annually for the 2023-24 and 2025-26 financial years to ensure asset owners are accurately declaring their wealth and paying appropriate taxes.
Insurance policy data will be collected for specified classes of assets, where the relevant asset value is equal to or exceeds the nominated thresholds, outlined below.
‘Lifestyle’ assets targeted by the ATO
| Asset class | Minimum asset value threshold |
| Aircraft | $150,000 |
| Caravans and motorhomes | $65,000 |
| Fine art (per item) | $100,000 |
| Marine vessels | $100,000 |
| Motor vehicles* | $65,000 |
| Thoroughbred horses | $65,000 |
*Including cars, trucks, and motorcycles
Source: Australian Tax Office
Insurance companies will provide detailed policy information, including owner names, email addresses, and descriptions of the insured assets.
The ATO will use this data to check for under-declared income, and appropriate declarations of income tax, fringe benefits tax, and goods and services tax.
Investment Properties and Rental Income Scrutiny
Alongside lifestyle assets, the ATO will also turn its attention to property owners, particularly those with investment properties. Data from property management software will be scrutinised to identify potential abuses of tax concessions, including misreported rental income or properties left unoccupied despite being declared as investments.
The ATO estimates that 2.3 million property owners will be subject to this review each year, starting from the 2018-19 financial year and extending through to 2025-26. Details such as ownership records, rental histories, and transaction specifics will be analysed to ensure that landlords are accurately declaring income and complying with capital gains tax (CGT) obligations.
According to the ATO, prior programs revealed that approximately 90% of rental property owners had submitted incorrect tax return information. Thus, they anticipate significant tax dollars to be raised through this initiative.
Contact Pilot
Given the ongoing improvements in data-matching programs, we recommend that our clients cross check their various lodgements and records to ensure discrepancies are understood and explainable.
If you are unsure of your obligations or would like to learn more about any of the above, please contact Murray Howlett on mhowlett@pilotpartners.com.au or your Pilot advisor on (07) 3023 1300.