The ATO data matching program allows information from a variety of sources to be brought together to identify businesses operating in the cash economy, including data from banks that identify credit card and EFTPOS sales made by Australian businesses.

These businesses may “skim” some or all of thier cash takings, run part of thier busines off teh books or not report all their income.

The data obtained is compared with taxpayer information and the ATO’s small business benchmarks to identify businesses which have not reported all their income.

Businesses identified at risk of potentially under reporting thier income will be contacted and encouraged to make voluntary disclosure of any under reported amounts.

The ATO will electronically match data relating to merchant card sales of entities within various cash economy industries from the major banks. Records of approximately 300,000 individuals within cash economy industries will be matched.

The ATO will also collect details of individuals or entities that have purchased plasterboard and cornices in NSW. Records relating to approximately 10,000 individuals will be matched.

They will also collate information of individuals or entities that have purchased a motor vehicle valued at $10,000 or higher. Records relating to approximately 2.5 million individuals will be matched.