The Australian Taxation Office (ATO) has announced that its data-matching program for lifestyle assets information obtained from insurance providers will continue for 2023–24 to 2025–26

Data items collected include policy details for assets covered by the program and associated identification details (such as names, addresses, phone numbers, dates of birth, ABNs and email addresses). This information will be matched against ATO lodgments to improve their tax compliance risk profiling and to provide a holistic view of your assets and accumulated wealth.

The lifestyle assets data-matching program allows the ATO to identify and address taxation risks, including omitted or incorrect reporting of income, capital gains, GST credits or fringe benefits tax. The program will also address inappropriate use of assets by self-managed superannuation funds (SMSFs), for example, where funds may be acquiring assets but applying them for the present-day benefit of members or other related parties.

Client information and policy details will be collected in relation to the following classes of assets:

• Caravans and motorhomes valued from $65,000
• Motor vehicles (including cars, trucks and motorcycles) valued from $65,000
• Thoroughbred horses valued from $65,000
• Fine art valued from $100,000 (per item)
• Marine vessels valued from $100,000
• Aircraft valued from $150,000.

You should be aware that capital gains tax may apply in relation to certain personal use assets or collectables. Where an asset purchased through your business is applied for personal use, liability for fringe benefits tax may arise. Special rules also prohibit personal use assets and collectables held by your SMSF from being used or leased by a related party.

If you have any questions about this data-matching program or would like to review your arrangements, please contact our office.