Australia

ATO Compliance Programs – Personal Income Taxation Compliance Program

$80.3 million has been budgeted to the ATO to extend the Personal Income Taxation Compliance Program for 2 years, commencing 1 July 2023.

The funding will allow the ATO to engage, ahead of time, with taxpayers and tax agents, update their guidance products and increase focus on non-compliance areas, including underreporting of income and overclaiming of deductions.

ATO Compliance Programs – Shadow Economy Program

The Government has announced that it will extend the existing ATO Shadow Economy Program for a further 3-year period starting 1 July 2023.

The extension is expected to allow the ATO to focus more on shadow economic activities while protecting revenue and eliminating any disadvantages to businesses that comply with existing legislative requirements.

The measure is expected to increase receipts by $2.1 billion and payments by $685.2 million over a 4-year period from 2022-2023.

$10,000 cash payment limit 

The Government will not be proceeding with the 2018–19 Budget measure, announced by the previous Government, that proposed introducing a limit of $10,000 for cash payments made to businesses for goods and services. 

ATO Compliance Programs – Tax Avoidance Taskforce

A further $200 million in funding per year over 4 years from 1 July 2022 has been budgeted for the tax avoidance taskforce, in addition to extending this taskforce for a further year from 1 July 2025.

The increase in funding and extension of the tax avoidance taskforce intends to increase the resources available to the ATO to pursue new priority areas of observed business tax 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.

Related budget analysis

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