6.3.2: Tax file numbers and taxation information

Context

Access to taxation information is essential for the effective assessment, collection and enforcement of child support. CSA is permitted to use tax file numbers (TFNs) as an identifier, and to exchange information with the Australian Taxation Office (ATO).

Legislative references

Sections 16, 16B, and 16C Child Support (Registration and Collection) Act 1988

Sections 150, 150B, 150C and 150D Child Support (Assessment) Act 1989

Sections 16(4)(ja) and 202(ga) Income Tax Assessment Act 1936

Sections 8WA and 8WB Taxation Administration Act 1953

Sections 13 and 1718 Privacy Act 1988

Explanation

The Child Support legislation may specifically refer to taxation information. For example, child support assessments are based on taxable income as assessed by the Australian Taxation Office (ATO), and CSA can collect child support debts by intercepting a payer's tax refund. CSA also uses taxation information more generally for purposes related to the assessment, collection and enforcement of child support.

CSA uses TFNs as customer identifiers and to exchange information with the ATO. It is not compulsory for a person to provide their TFN to CSA. However, by quoting their TFN a customer may expedite their dealings with CSA (e.g. a customer who enters their TFN when they telephone CSA can have their call transferred promptly to the correct area, or gain access to a range of ATO payment facilities).

Authority to use taxation information

The exchange of information between CSA and ATO is permitted by the secrecy provisions of the child support and taxation legislation (sections 16(2A), 16(3)(ca) and 16(6) Registration and Collection Act, sections 150(2A), 150(3)(ca) and 150(6) Assessment Act). In addition, the Child Support legislation specifically authorises CSA to:

• request, but not compel, a person to provide their TFN (section 16B Registration and Collection Act, section 150B Assessment Act).
• require the ATO to provide information the ATO possesses about people, including TFNs (section 16C(1) Registration and Collection Act, section 150D(1) Assessment Act).
• use that information to: identify a person; decide whether a person can apply for a child support assessment; make or amend a child support assessment; and decide whether a terminating event has happened (section 150D(2) Assessment Act)
• use that information to: identify a person; and register and collect child support payments (section 16C(2) Registration and Collection Act).

One of the objects of the tax file number system is to facilitate the administration of the Child Support legislation (section 202(ga) Income Tax Assessment Act). ATO staff are able to disclose protected information about taxpayers to CSA where the information is necessary for the administration of the Child Support legislation (section 16(4)(ja) Income Tax Assessment Act).

Privacy Commissioner's guidelines

The Federal Privacy Commissioner has issued guidelines about the collection, storage, use and security of TFNs. The TFN guidelines are legally binding and a breach of the guidelines is an interference with individual privacy. The TFN guidelines recognise that CSA uses TFNs for child support purposes and explain some of CSA's obligations when collecting and using them.

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Version 1.2

Issued 27 August 2002

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