Program overview
This protocol has been prepared to meet the requirements of the Guidelines on Data Matching in Australian Government Administration 2014 (Guidelines) published by the Office of the Australian Information Commissioner (OAIC).
The share transactions data matching program has been conducted since 2006 to ensure compliance with taxation obligations on the disposal of shares and similar securities. There are taxation implications on the disposal of shares, especially in relation to capital gains tax (CGT).
As taxpayers can hold shares for many years before disposal, the collection of transaction history data dating back to 20 September 1985 (the introduction of the CGT regime) is necessary to enable cost base and capital proceeds calculations. Collecting data back to 1985 does not change our general compliance approach of reviewing share disposals within the standard period of review.
In the 2013–14 Federal Budget, the government announced it would legislate to make the reporting of share transaction data to the ATO mandatory. Legislation was enacted in the Tax and Superannuation Laws Amendment (2015 Measures No. 5) Bill 2015, requiring reporting from the Australian Securities and Investments Commission (ASIC) from 1 July 2016. Share registries, brokers, trustees and fund managers were required to report from 1 July 2017.
The legislative reporting regime gathers share transaction data and has done so since its start. The regime doesn't gather data retrospectively.
Data acquired under this data-matching program will continue to be required until all shares have been transferred within the legislative reporting regime.
This data-matching protocol has been amended from the original version published in October 2018 to align with the following existing data matching practices:
- General Disposal Authority 24 (GDA 24) has been revoked and an exemption is no longer required to retain the data beyond the retention period
- adopted the updated data-matching protocol template.
Program objectives
Our data-matching programs help us fulfil our responsibility to protect public revenue and maintain community confidence in the integrity of the tax and superannuation systems.
The objectives of the share transactions data-matching program are to:
- promote voluntary compliance and strengthen community confidence in the integrity of the taxation and superannuation systems and other programs administered by the ATO
- obtain intelligence about the acquisition and disposal of share and similar securities and identify risks and trends of non-compliance across the broader compliance program
- identify a range of compliance activities to address risks of taxpayers and others that are required to notify the ATO of dealings in share transactions
- work with share registries and ASIC to obtain an understanding of risks and issues as well as trends of non-compliance
- support compliance strategies to minimise future risks to revenue
- ensure compliance with registration, lodgment, correct reporting and payment of taxation, superannuation and other obligations.
Why we look at share transactions data
Our share transactions data-matching program will allow us to identify taxpayers that dispose of shares to inform them of their tax obligations as part of information and education campaigns, and to ensure compliance with taxation and superannuation obligations on the disposal of shares, especially in relation to capital gains tax (CGT).
For more information see Disposing of shares.
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