How we use data matching

We receive data from a range of sources, including banks, financial institutions and other government agencies. We validate this data and match it against our own information to identify where people and businesses may not be reporting all their income.

In this section

• Legislated data collection
• Sources of third-party information
• Validating the data we receive
• Your privacy
• Data-matching programs
• Exchanging data with other Australian Government agencies

Legislated data collection

Some organisations (such as banks, employers and health insurers) have a legal obligation to report information to us. Through our data-matching activities, this legislated data collection helps taxpayers to prepare complete and accurate tax returns.

For example, our pre-filling service provides data for taxpayers to review and include in their tax returns. Helping people get it right the first time reduces the need for follow-up activity.

Where a person has made an error due to poor record keeping or a misunderstanding of the law, we work with them to correct their tax return and to improve their understanding of their obligations.

Using data to check tax returns

When we identify a discrepancy (for example, interest income not declared in a tax return), we also check if the amount has been placed at another label by mistake.

If we contact you about a discrepancy, we provide you with details and the data that's been matched. You can then check your records and let us know if you think we've made a mistake.

What we look for:

• omitted interest and income
• employment income
• government payments
• capital gains tax from the disposal of shares and property
• employment-related foreign source income
• taxable government grants and payments
• payments made to contactors in the building and construction industry
• distributions from partnerships, trusts and managed funds.