New ATO check catching out Aussies at tax time: 'Not hidden anymore'

Aussie taxpayers are being warned they can’t hide their income from the Australian Taxation Office (ATO). The tax office has new and extended data checks to make sure taxpayers are doing the right thing.

Tax Invest Accounting director Belinda Raso told Yahoo Finance many taxpayers weren’t aware of just how much information the ATO was able to see, including whether or not you have any side hustles like Uber Eats or AirTasker on the go.

“Nothing is being hidden anymore,” Raso said. “Side hustles aren’t being hidden anymore, if you’ve got a side hustle in the sharing economy that will be reported, if you receive payments through any bank or merchant facility that is going to be reported."

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The ATO collects information from a range of third-party sources, including employers, financial institutions, companies and government agencies, which it uses for data matching.

Recent expansions mean it now gets information from even more third-parties including side hustle platforms like Uber and Airbnb, along with information from short-term accommodation platforms like Stayz and Airbnb.

“They are expanding on that further so even property managers' software will be reported to the ATO as well. We’ve got a whole new world,” she said.

"Literally, there is nowhere to hide.”

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What information does the ATO get?

The ATO collects data from a range of organisations. That includes cryptocurrency platforms, Raso said, with the ATO advised of when there has been a disposal of your cryptocurrency.

“If you don’t report this on your tax return, the ATO will come knocking looking for this information,” Raso said.

The ATO also collects information from managed funds and shares, Raso noted, including how much income you have received and if you have sold any shares.

“If you’re trading through an online platform like PayPal or eBay, the ATO gets reported the volume of the sales and the dollar values as well,” she said.

However, she noted the ATO's data-matching program was targeted at those making more than $12,000 in sales, rather than people who are selling their own things online.

“If you have a merchant facility like Square or the like or even through the bank, they’ll get a dollar amount that you have received in your bank account,” Raso said.

“State governments report any transfer of property so even if it is a main residence they know these details as well.”

Additionally, share economy platforms like AirBnB, Stayz and gig economy platforms like AirTasker and Uber.

“It’s all transparent on the [ATO]’s website. If you search their data matching protocol it’s all listed there everything that they do,” she said.

ATO protecting ‘honest people’

An ATO spokesperson told Yahoo Finance that data matching was an administrative and law enforcement tool used for education and compliance activities.

After receiving the data from third-party sources, the ATO said it validates, analyses and matches with its own information to identify people or businesses not reporting their information correctly.

“Our data-matching programs are designed to increase community confidence in the integrity of the tax and superannuation systems,” the spokesperson said.

“They allow us to reassure the community that we protect honest people and businesses from unfair competition.”

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