Tax compliance: improving compliance through third party reporting and data matching
Legislation to introduce third party reporting of real property, shares and units, business transactions made through payment systems and government grants and payments data received royal assent on 30 November 2015.
The draft Legislative Instruments, Explanatory Statements and Electronic Reporting Specifications accompanying the legislation were released for consultation on Let’s TalkExternal Link and closed 15 February 2016. The Legislative Instruments will be finalised by March 2016.
Under the legislation there are four reporting regimes being introduced with corresponding Legislative Instruments, Explanatory Statements and Electronic Reporting Specifications for consideration;
- Transfers of real property
The reporting regime applies to all real property transfers executed. State and Territory Revenue and Land Titles Offices will be required to report transfers within their jurisdiction of all freehold or leasehold interests in real property. The start date for reporting is 1 July 2016 with the first quarterly report due for submission by 31 October 2016.
- Government grants and payments
Government entities will be required to report information about the grants they make to ABN holders and payments for services provided. The start date for collection of data is 1 July 2017 with the first report due to be lodged by 28 August 2018.
- Business Transactions made through Payment Systems
Administrators of payment systems will be required to report transactions they facilitate on behalf a business where the business is receiving a payment, providing a refund or cash to a customer of the business.
Reporters will need to commence collecting the required data from 1 July 2017 with the first annual report due for submission by 31 July 2018.
- Transfers of reportable securities and units in a unit trust
The reporting regime will capture data on transactions involving shares or units. This data will be collected from the Australian Security and Investment Commission, stockbrokers, share registries, trustees and fund managers. The start date for reporting is 1 July 2016 for ASIC. Managed Funds and Trustees reporting through the Annual Investment Income Report will need to report by 31 October 2018. All other reporters will need to commence collecting the required data from 1 July 2017 with the first annual report due for submission by 31 July 2018.
For further information please refer to the draft Legislative Instruments, Explanatory Statements and Electronic Reporting Specifications that can be found hereExternal Link.
For more information, refer to:
Media ReleaseExternal Link No.29 of 2015 issued on 25 November 2015 by the Minister for Small Business and Assistant Treasurer
Media release No.12 of 2014External Link - issued on 13 May 2014 by the Acting Assistant Treasurer.
Joint media releaseExternal Link No.17 of 2013 issued on 6 November 2013 by the Treasurer and Assistant Treasurer.
Legislation and supporting material
The following legislation received Royal Assent on 30 November 2015:
Tax and Superannuation Laws Amendment (2015 Measures No. 5) Act 2015External Link
Explanatory MemorandumExternal Link
On 6 November 2013, the Government announced that it would proceed with the 2013-14 Budget measure 'Tax compliance: improving compliance through third party reporting and data matching'.