ATO explains its analysis of the ‘gap’ between taxes theoretically due and actually paid – why and how

Why we measure the tax gap Estimating tax gaps forms part of the ATO’s broader accountability and transparency as a leading administrator. It is consistent with contemporary international best practice in tax administration. Australians all benefit from healthy tax and superannuation systems that support our society and economy. The community expects us to manage all…

ATO analysis of the ‘gap’ between theoretical amounts of tax payable and that actually collected: GST – 7.3%, Large Corporate Income Tax – 5.8%, PAYGw – 1.9%, SG – 5.2%

The ATO has reported (on its website), that in October 2017, it updated its estimates for goods and services tax (GST), wine equalisation tax (WET), fuel excise, pay as you go (PAYG) withholding, and fuel tax credits (FTC). They advised: “We are in the process of refreshing our estimates and anticipate the next updates will be published…