The Australian Taxation Office (ATO) has expanded its data-matching efforts, including a specific program focused on high-value “lifestyle” assets. From 2023 through 2026, the ATO will work with insurance providers to gather information on assets exceeding certain value thresholds, aiming to enhance tax compliance.
The assets and respective value thresholds targeted include:
• Caravans and motorhomes: $65,000;
• Motor vehicles (cars, trucks, motorcycles): $65,000;
• Thoroughbred horses: $65,000;
• Fine art: $100,000 per item;
• Marine vessels: $100,000;
• Aircraft: $150,000.
The ATO’s primary focus areas for businesses involve:
• Accurately reporting income and capital gains;
• Correctly claiming GST credits;
• Reporting fringe benefits tax (FBT) accurately; and
• Compliance of asset use by self-managed super funds (SMSFs) with relevant laws.
This initiative will involve collecting an estimated 650,000 to 800,000 insurance records each year, with around 250,000 to 350,000 of these linked to individual taxpayers. The program aims to ensure transparent and accurate tax reporting across these high-value asset categories.