Most accountants would be aware the ATO has a lifestyle assets data-matching program, but not all practitioners would be aware it expressly targets SMSFs. In its present form, the program is limited, which gives practitioners the opportunity to learn how the ATO gathers information and what it is used for.
The ATO states data is being acquired to assist with risk profiling and provide an overall view of taxpayers’ assets and wealth.
The program expressly targets SMSFs in the following way: “Use of assets by self-managed super funds in breach of the law – SMSFs may be acquiring assets but applying them for the present-day benefit of the fund’s members or other related parties.”
Background
The ATO’s formal lifestyle assets data-matching program began in February 2016, backdating to cover the 2014 financial year. New rounds of data collection have since been announced, now including information up to 2025/26.
Data collected
The ATO compels insurers to provide material by relying on their formal information-gathering powers contained in Section 353-10 Schedule 1 of the Taxation Administration Act 1953.
From these organisations, the regulator gathers:
- policyholder identity (name, address, date of birth, contact details),
- asset values (purchase and/or insured value),
- asset identifiers (make, model, registration), and
- policy dates, use classification and other information.
It then matches that data against its existing records.
| Recent asset value thresholds | |
| Asset class | Minimum asset value threshold |
| 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 |
Each year, the ATO expects to receive 650,000 to 800,000 policy records, with 250,000 to 350,000 belonging to individuals.
This is in addition to its existing data-matching program covering income (interest, dividends and trust distributions), capital gains and rental income.
SMSF practitioner implications
The ATO’s current focus on insurance data collection highlights high-value collectable and personal-use assets. Auditors should verify that assets comply with the collectable rules, in particular:
- assets are owned in the name of the SMSF,
- the insurance policy is in the SMSF name,
- assets are not stored at the residence, and
- assets are not being used personally by members or related parties.
Where breaches are identified, they should be rectified immediately.
The regulator has clearly communicated its stance on data matching and SMSFs compliance and provided a blueprint for how breaches will be detected. It is not unreasonable to assume the ATO will continue to expand its data-matching efforts in this area.
Susan O’Connor is principal of Susan O’Connor Accounting.