ATO Data-Matching: “Lifestyle” Assets And Your Business
The ATO has announced or extended a number of data-matching programs recently, including the lifestyle asset data-matching program. Data will be acquired from insurance providers for 2023–2024 to 2025–2026 for specified classes of asset where the asset value is equal to or exceeds nominated thresholds.
The assets and thresholds covered are:
- caravans/motorhomes: $65,000;
- motor vehicles including cars, trucks and motorcycles: $65,000;
- thoroughbred horses: $65,000;
- fine art: $100,000 per item;
- marine vessels: $100,000; and
- aircraft: $150,000.
Some of the tax risks relevant to businesses that the ATO is keen to address are the:
- omission or incorrect reporting of income and/or capital gain;
- incorrect claiming of GST credits;
- omitted or incorrect reporting of FBT; and
- use of assets by self-managed super funds (SMSFs) in breach of the law.
The ATO estimates that between 650,000 and 800,000 policy records will be obtained each year, with 250,000 to 350,000 matched records relating to individuals.
Important: Clients should not act solely on the basis of the material contained here. Items herein are general comments only and do not constitute or convey advice per se. Also, changes in legislation may occur quickly. We, therefore, recommend that our formal advice be sought before acting in any of the areas.
