Extend ATO compliance programs – Tax Avoidance Taskforce
The Government will extend funding for the ATO Tax Avoidance Taskforce by around $200 million per year over a 4-year period from 1 July 2022. The Government will also extend the taskforce for a further year from 1 July 2025. Since 2016, the Government has provided the ATO with significant funds to address corporate and trust tax avoidance. The latest funding will support the ATO’s ongoing compliance activities targeted at multinationals, large public businesses and private businesses. It will also allow the ATO to undertake new compliance activities for observed business risks. This measure is estimated to increase receipts by $2.8 billion and increase payments by $1.1 billion over the 4 years from 2022–23.
Extend ATO compliance programs – Shadow Economy Program
The Government will extend the existing ATO Shadow Economy Program for a further 3 years from 1 July 2023 (note: this used to be called the ‘black’ economy). The extension of the program will enable the ATO to target shadow economy activity, protect revenue and level the playing f ield for businesses that are following the rules. The measure is expected to increase receipts by $2.1 billion and increase payments by $685.2 million over the 4 years from 2022–23.
Extend ATO compliance programs – Personal Income Taxation Compliance Program
The Government will provide $80.3 million to the ATO to extend the Personal Income Tax Compliance Program for 2 years from 1 July 2023. The additional funding will allow the ATO to undertake a combination of proactive, preventative and corrective compliance activities, focusing on key areas such as overclaiming of deductions and incorrect reporting of income. The additional funding will also allow the ATO to modernise its guidance products, engage earlier with taxpayers and tax practitioners, and target its compliance activities. The measure is estimated to increase receipts by $674.4 million and increase payments by $80.3 million over the 4 years from 2022–23.
Updated Federal Budget Report 2022–23 Tax Practitioners Board – compliance program to enhance tax system integrity
The Government will provide $30.4 million to the Tax Practitioners Board (TPB) to increase compliance investigations into high-risk tax practitioners and unregistered preparers over 4 years from 1 July 2023. The funding will be utilised by the TPB to develop new risk engines, allowing better identification of tax practitioners who engage in unlawful tax advice. Compliance activities are targeted at improving tax compliance and raising industry standards. This measure is estimated to increase receipts by $81.9 million, and increase payments by $30.8 million, over the 4 years from 2022–23.
Modernising business registers – program funding, director ID sustainment and registry stabilisation
The Government announced additional funding of $166.2 million over the 4 years from 2022–23 to continue delivery of the Modernising Business Registers program. The program will consolidate more than 30 business registers onto a modernised registry platform. The funding includes payments of:
- $80 million in 2022–23 for the ATO and the Australian Securities and Investments Commission (ASIC) to continue design and delivery of the modernised registry platform; and
- $86.2 million over 4 years from 2022–23 ($119.5 million over 6 years from 2022–23 and $15.9 million per year ongoing) for the ATO and ASIC to operate and regulate the Director Identification Numbers regime and maintain ASIC’s registry systems.
[The Tax Institute’s Budget Update 2022/23]
[Tax Month – October 2022 – Previous Month, 6.11.22]