The Australian Taxation Office (ATO) is using sophisticated data-matching programs to cross-check your tax return against information from banks, employers, government agencies, digital platforms and more. If the numbers don’t match, expect follow-up questions — or even an audit.

How the ATO Matches Your Data

The ATO collects information from:

• Banks & Financial Institutions – interest, dividends, account balances, merchant transactions, loan drawdowns and bank transactions.

• Employers & Government Agencies – wages (via Single Touch Payroll), Centrelink, HELP/HECS debts and certain contractor payments.

• Sharing Economy Platforms – Airbnb, Uber, Airtasker, eBay and more now report earnings directly to the ATO.

• Cryptocurrency & Share Exchanges – trades, purchases, and disposals are tracked.

• Property & Asset Records – sales, rental bonds, property management records and even high-value asset purchases like boats or luxury cars. Car registration records are shared to highlight potential missing fringe benefits that businesses should be declaring or to highlight where a person has declared a low income that shouldn’t be able to support such a purchase. The ATO can also access turnover reported to a shopping centre as part of a lease agreement and match this to your reported turnover.

• Benchmarking – The ATO uses data from taxpayers with similar occupations or business activities to identify higher risk taxpayers for audit.

If your declared income or deductions don’t line up with these records, the ATO’s systems flag it for review.

Top Audit Targets Linked to Data Matching

For 2024–25, expect closer checks on:

• Work-related expenses – especially inflated work-from-home or travel claims.

• Rental property income & deductions – all income (including Airbnb) must be declared; claims must be accurate and supported. The ATO will typically investigate whenever rental repairs are over $5,000 so be prepared with supporting documentation.

• Gig economy & side hustles – undeclared platform income will be picked up.

• Crypto & investment gains – capital gains or losses must be reported correctly.

How to Stay Off the Radar

• Declare all income – including side hustles, rent, and crypto.

• Keep solid records – receipts, logbooks, bank statements, and rental agreements.

• Claim only what you can prove – and make sure it’s genuinely work or income related.

• Be consistent – ensure your tax return matches other forms lodged (e.g., BAS, payroll, turnover declared to other entities).

Assume the ATO already has most of your financial information. Being accurate, transparent and well-documented is your best defence.