Common Reporting Standard: All you need to know

Simon Dordell's observations as new head of credit risk at RateSetter

Introduced in 2017 by the Australian government, the Common Reporting Standard (CRS) is a new global information-gathering and reporting requirement for financial institutions in participating countries, to help fight against tax evasion and protect the integrity of tax systems.

Under CRS law, the ATO now requires that we collect and report on certain information relating to our customers’ tax statuses. For example, if you register to become a member of the RateSetter Lending Platform, or if you opened an account with us after 31 July 2017, we will ask you to certify a number of details about yourself. This process is called “self-certification” and we are required to collect this information under the CRS.

For Australian tax residents, this process involves answering only one question. If you are a foreign resident, however, for tax purposes you’ll need to provide us some further information, including any tax identification numbers issued to you by foreign jurisdictions.

If you fail to comply, Under the terms of the CRS and FATCA legislation, we may be required to treat you as a foreign resident for tax purposes and report the relevant details to the ATO.

All information we collect about you is held subject to our Privacy Policy.

If you have further questions, see our CRS frequently asked questions or contact us on 1300 768 710.

This information does not constitute financial advice and you should consider whether it is appropriate to your circumstances before you act in reliance on it. Any opinions, forecasts or recommendations reflect the judgement and assumptions of RateSetter as at the date of publication and may later change without notice.

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