How we use real property transactions data
The data collected under this program will be compared with information in our system. We will match this data against our records and other data we hold to identify taxpayers that may not be meeting their registration, reporting, lodgment or payment obligations.
The data will also support client engagement and voluntary compliance through initiatives such as education and pre-filling information in tax returns.
Previous related programs
This program was active from 2005 until legislative amendments shifted responsibility for reporting property transfers to state and territory revenue collection agencies and titles offices. Transfers occurring after 1 July 2017 are now reported under this legislative regime.
During the 2016–17 financial year, we identified over 5,431 cases where real property dealings were not treated correctly, raising an additional $65 million in revenue. This demonstrates the effectiveness of this program in protecting public revenue.
Data providers
We are the matching agency and, in most cases the sole user of the data obtained during this data-matching program.
Data was obtained from the following data providers:
- New South Wales Office of State Revenue
- New South Wales Department of Finance & Services – Land & Property Information
- Victorian State Revenue Office
- Australian Capital Territory Environment & Planning Directorate
- Australian Capital Territory Office of Regulatory Services (Land Titles Office)
- (Northern) Territory Revenue Office
- Northern Territory Department of Lands, Planning and the Environment
- Queensland Office of State Revenue
- Tasmanian Department of Primary Industries, Parks, Water & Environment
- Tasmanian State Revenue Office
- Revenue SA
- South Australian Department of Planning, Transport & Infrastructure – Land Services Group
- Western Australian Office of State Revenue
- Western Australian Land Information authority (Landgate).
Our formal information gathering powers
To ensure statutory requirements are met, we obtained data under our formal information gathering powers. These are contained in section 264 of the Income Tax Assessment Act 1936 and section 353 10 of Schedule 1 to the Taxation Administration Act 1953.
This is a coercive power, and data providers are obligated to provide the information requested.
We use the data for tax and superannuation compliance purposes.
Privacy Act
Data will only be used within the limits prescribed by Australian Privacy Principle 6 (APP6) contained in Schedule 1 of the Privacy Act and in particular:
- APP6.2(b) – the use of the information is required or authorised by an Australian law
- APP6.2(e) – the ATO reasonably believes that the use of the information is reasonably necessary for our enforcement-related activities.
Data elements we collected
We collected data from the state and territory revenue collection agencies and titles offices for the period of 20 September 1985 to 30 June 2017. The data quality is of a high standard as there is a requirement for government entities to account for and report on property transactions data.
The collected data may contain all or a selection of the fields listed below:
- Date of property transfer
- Full street address of the property transferred
- Municipality identifier of the property transferred
- Property sale contract date
- Property sale settlement date
- Property land area
- Property sub-division date
- Total property transfer price
- Land usage code
- Transferor’s full name
- Transferor’s full address
- Transfer property ownership percentage and manner of holding
- Transferor’s date of birth
- Transferor’s Australian company number (ACN) or Australian business number (ABN)
- Transferee’s full name
- Transferee’s full address
- Transferee’s property ownership percentage and manner of holding
- Transferee’s date of birth
- Transferee’s property ownership percentage and manner of holding
- Transferee’s ACN or ABN
- Land tax and applicable exemption details
- Purchase duty and applicable exemption details
- Valuation details
Number of records
During the relevant period, we collected data and matched records for over 2 million individuals each financial year for this program.
Data retention
We collected data under this program for the period 20 September 1985 to 30 June 2017 on a quarterly basis, with the final data obtained in September 2017.
We were granted exemption by the OAIC to retain the data beyond the retention period, initially in 2005, with successive extensions granted, including a final 7-year extension in 2017. The exemption requests were required to satisfy the National Archives of Australia's General Disposal Authority 24 (GDA 24) – Records relating to data matching exercises.
GDA 24 has now been revoked and an exemption from the OAIC is no longer required to retain the data beyond the retention period. We conduct a regular internal assurance process to ensure that a business need remains and that only records required to be retained are kept in accordance with current data governance practices.
The data is required for the protection of public revenue:
- Retaining real property transactions data supports our broader compliance approach to CGT, GST, income tax and other risks.
- The data enhances our ability to identify taxpayers who may not be complying with their tax and super obligations, which is integral to protecting the integrity of the tax and superannuation systems.
- The disposal of a property may trigger a CGT event, and this can occur after an asset has been held for many years.
- Real property transaction history dating back to 20 September 1985 (the introduction of the CGT regime) is required to enable cost base and capital proceeds calculations that are used to accurately determine a CGT liability.
- The data is also used in multiple risk models, including models that establish retrospective profiles over multiple years aligned with period of review.
While increased data retention periods may increase the risk to privacy, we have a range of safeguards to manage and minimise this. Our systems and controls are designed to ensure the privacy and security of the data we manage.