Which laws govern how ATO inspectors must handle taxpayer information, including confidentiality and lawful use?

• A. Freedom of Information Act 1982
• B. Taxation Administration Act 1953
• C. Privacy Act 1988 and Australian Privacy Principles
• D. Australian Competition and Consumer Commission Act 2010

Answer: (C)

Protecting personal information handled by ATO inspectors rests on the Privacy Act 1988 and the Australian Privacy Principles. These set the rules for how information is collected, used, disclosed, stored, and secured by government agencies, including the ATO. They require that taxpayer data be kept confidential, used only for the purposes for which it was collected (and related permissible purposes), and protected against misuse. They also give individuals rights to access and correct their information and govern cross‑border data transfers, ensuring staff understand and follow strict privacy safeguards. While the Taxation Administration Act contains specific secrecy provisions about disclosing tax information, the Privacy Act framework directly governs daily handling and lawful use of personal data by ATO inspectors. The other acts mentioned address different issues: the FOI Act governs access to government documents, and the ACCC Act deals with competition and consumer matters.