The nation’s tax company will quickly purchase a state-by-state database of motorcar registrations.

The Australian Tax Workplace has introduced it should entry automobile buying information by state in an effort to probably catch out tax-evading people and companies.

“The Australian Taxation Workplace (ATO) will purchase motorcar registry information from state and territory motorcar registry authorities for 2019–20 by way of to 2021–22,” the ATO stated in a policy notice.

This information will embody the names, addresses, ABNs or firm numbers for sole merchants and enterprise homeowners, in addition to the sale worth of their automobiles, the automobile’s storage handle, the make and mannequin and whether or not or not the customer acquired a stamp obligation exemption – amongst different issues.

The ATO stated it estimates the brand new coverage will enable it to acquire the registration data of roughly 1.5 million individuals for each monetary 12 months.

The federal government company will then cross-check the registration information with its inside information holdings to find out whether or not taxpayers are complying with their taxation or superannuation obligations.

In layman’s phrases, this implies the ATO will be capable to “flag potential taxpayers of curiosity,” defined Elinor Kasapidis, Senior Supervisor of Tax Coverage at CPA Australia – Australia’s main skilled accounting physique.

“For instance, the proprietor of a brand new Ferrari with no reportable earnings or a licenced supplier reporting unusually low luxurious automobile tax,” Ms Kasapidis stated.

The transfer additionally has potential ramifications for enterprise homeowners who’ve accessed the federal government’s recently-expanded instant asset write-off scheme,

“The moment asset write-off is topic to worth thresholds, which for vehicles is $57,581 for the 2019-20 earnings 12 months. Registry information will assist the ATO determine individuals who could have over-claimed,” Ms Kasapidis stated.

“Different examples which might elevate a pink flag embody shopping for the household automobile by way of an organization or buying a brand new automobile annually.”

In the event you’re doubtful, it is value checking along with your related accountant or monetary advisor to make sure you’re compliant.

“Automobile purchases can have quite a lot of tax implications, together with GST, fringe advantages tax, luxurious automobile tax, gasoline schemes and earnings tax,” Ms Kasapidis suggested.

“In the event you’re involved concerning the tax implications of your automobile buy, search recommendation from a registered tax agent.”