
Lifestyle Assets Data-Matching Program
The Australian Taxation Office (ATO) has announced that they will be gathering detailed data on certain high-value lifestyle assets insured by individuals and businesses from 2023-24 through to 2025-26, under the ‘Lifestyle Assets Data-Matching Program’. The information will be collected from insurance providers and will cover various classes of assets to help identify and address several taxation risks.
What this means
The ATO will obtain information on the assets listed below if their value meets or exceeds the specified thresholds. This data will include not only details about the assets themselves but also personal identification and policy details of the asset owners such as names, phone numbers, email addresses, dates of birth, Australian Business Numbers (ABN), insurance brand name, policy number, policy inception date, purchase price of the property, registration or identification number of the property and more.
Asset classes & minimum asset value thresholds
- Caravans and 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
- Aircraft – $150,000
Key takeaways
The primary purpose of collecting this data is to ensure taxpayers are compliant with their tax obligations. The ATO will use this information to cross-check against income tax returns, Capital Gains Tax (CGT), Fringe Benefits Tax (FBT), Goods and Services Tax (GST) and superannuation obligations.
Additionally, the ATO will develop a more comprehensive view of a taxpayer’s wealth by linking high-value assets with reported income and other financial data. If a taxpayer’s reported income appears inconsistent with their ownership of these high-value assets, it may trigger further investigation.
Individuals and businesses owning high-value assets should be aware that they may face increased scrutiny from the ATO. It is essential to ensure that all related tax obligations are met and that the ownership and value of these assets are accurately reported.
Our team can assist this process by conducting comprehensive asset reviews, ensuring your financial reporting aligns with ATO requirements, engaging in tax planning to minimise liabilities, maintaining accurate records and preparing for potential audits.
For more information on the Lifestyle Assets Data-Matching Program and assistance with your tax obligations, reach out to your Simmons Livingstone advisor at 1800 618 800 or via email at admin@simmonslivingstone.com.au