The ATO has formally renewed one of its longest running data matching programs. A notice published in the Commonwealth Gazette on 4 August confirms that the ATO will keep collecting vehicle purchase and transfer details from every state and territory motor registry, for the five financial years from the year ended 30 June 2026 through to 30 June 2030.

What the ATO collects

According to the notice and the ATO's published protocol, the program captures vehicles that are newly registered or transferred with a purchase price or market value of $10,000 or more. Records for about 2.5 million individuals are expected each financial year. The data includes:

  • names, addresses, phone numbers, emails and dates of birth of the people involved, plus business identifiers
  • the purchaser and the seller
  • the sale price and market value
  • the vehicle's make, model and registration details, its intended use and where it is garaged

How it is used

The ATO says the purpose is to identify taxpayers at risk of not meeting their tax or super obligations. In plain terms, it is looking for:

  • people buying vehicles that do not fit with the income they report
  • vehicles registered in someone else's name to disguise the real owner
  • errors across GST, fringe benefits tax, luxury car tax, fuel tax credits and income tax
  • people who buy and sell vehicles regularly without declaring the profit

Where small businesses get caught

Most business owners have nothing to hide, but vehicles are an area where honest mistakes are common. Typical examples include claiming a full GST credit on a car that is partly private, claiming GST on a car above the car limit, forgetting fringe benefits tax when an employee or director takes a work vehicle home, and leaving the sale of a business vehicle out of the BAS and the tax return.

What to do

  • Keep the paperwork. Hold the contract of sale, tax invoice and finance documents for every vehicle the business buys or sells.
  • Be honest about private use. Keep a logbook where one is needed, and apportion your GST and income tax claims to match.
  • Check who owns it. The name on the registration should line up with the entity claiming the deductions, or you should be able to explain why it does not.
  • Report the sale. Selling or trading in a business vehicle usually has GST and income tax consequences.
  • Fix old errors early. Coming forward voluntarily generally leads to a better outcome than waiting for a letter.

Data matching is not something to fear if your records are in order. It is simply a reminder that the ATO usually knows about a big purchase before your tax return does.

This article is general information only and does not take your personal circumstances into account.