The ATO has announced it will collect data on lifestyle assets from insurance providers for the 2023-24 to 2025-26 financial years’. This data collection will focus on insurance policies for assets that meet or exceed the specified minimum value thresholds.
Asset class and minimum value thresholds:
- Caravans and Motorhomes: $65,000
- Motor Vehicles (including cars, trucks, and motorcycles): $65,000
- Thoroughbred Horses: $65,000
- Fine Art: $100,000 per item
- Marine Vessels: $100,000
- Aircraft: $150,000
The ATO will collect data on client identification (names, addresses, phone numbers, dates of birth, Australian business number, and email addresses) along with policy details (insurance brand, policy number, policy inception and end dates, last update date, total insured value, purchase price, registration or identification numbers, primary use type, etc.).
The main objectives of this program are to encourage voluntary compliance, help the ATO profile taxpayers’ overall wealth, identify potential compliance issues related to income tax, capital gains tax, fringe benefits tax, GST, and superannuation obligations, and explore avenues for effective debt management.
The ATO’s lifestyle assets data-matching program highlights the importance of accurate reporting and compliance for high-value assets. By collecting this data, the ATO aims to ensure that taxpayers meet their obligations, so understanding how this program may impact you is essential, especially if you own valuable assets that fall within the specified thresholds.
At Walshs, our experienced team of financial planners and accountants can help you navigate these requirements and assess any potential implications for your individual circumstances. Whether you need guidance on tax compliance or advice on managing your financial obligations, we are here to support you.
For more information or to discuss your situation, please contact us at enquiries@walshs.com.au.
Michael Walsh, Walshs CEO
