ATO outlines priorities for 2026–27 in latest corporate plan

The ATO said it will aim to simplify the tax experience of taxpayers by reducing the time, complexity and uncertainty for those interacting with the tax system, particularly businesses and their advisers.

"This shift requires a deliberate and significant change to how tax is administered, embedding tax into the systems people already use, and prioritising simple, digital solutions," it said.

"The result is a system where more obligations are met by default, interactions are simpler, and support is targeted to those who need it most."

Implementing the government's $1,000 instant tax deduction will be another important priority for the Tax Office.

"Over 2026–27, we will establish new systems and processes to validate whether an individual is entitled to receive a standard deduction. We will also update relevant tax return guidance materials and deliver targeted communications for individuals, their agents and employers to assist them to understand the tax deduction changes," the ATO said.

The ATO will also expand pre-filled data for businesses by pre-filling information for contractors using taxable payment reporting system data.

"We continue our focus on identifying opportunities to expand pre-fill for business using third party data, with the aim of delivering similar productivity benefits to businesses that we have for individuals over the past two decades," it said.

The ATO is also expanding its dynamic PAYG instalment pilot to enable businesses to pay instalments based on current business performance. 

The Tax Office will also look to progress towards a real-time tax system for businesses by delivering on government commitments, maximising changes within existing legislative settings and identifying opportunities for further reform.

The ATO will also aim to further close the payment gap by focusing on payment outcomes and supporting earlier and more consistent payment of tax closer to when income is earned.

The implementation of Payday Super and the strengthening of payment performance and debt collection remain major focus areas for the ATO.

"We will embed consideration of debt and payment positions into every taxpayer interaction and support taxpayers to make payment where possible," said the Tax Office.

"Beginning with our frontline services, when we engage with taxpayers we will ensure all outstanding obligations are identified and appropriate resolution pathways are provided, that take into account taxpayer circumstances.

"We will build this approach across the ATO to strengthen performance of the tax system, promote a level playing field, and enable earlier, more targeted intervention."

ATO Commissioner Rob Heferen said the ATO needed to evolve to meet the challenges of an "increasingly complex operating environment".

"Our priorities identify where our effort and resources will be focused this year, including strengthening payment performance and debt collection, implementing the Government’s $1,000 instant tax deduction, expanding the dynamic pay as you go instalment pilot, enhancing counter-fraud measures, and delivering key reforms, such as Payday Super," said Heferen.

"A further priority for the year ahead is to support the government’s regulatory reform agenda by reducing complexity, improving administrative efficiency, and minimising compliance costs for taxpayers."

Heferen said the ATO will continue to take firm action against deliberate non-compliance, while supporting the vast majority of taxpayers who want to do the right thing.

"We are committed to supporting taxpayers experiencing vulnerability. We recognise that vulnerability can affect a taxpayer’s ability to meet their obligations," he said.

"Our approach will be empathetic and proportionate, providing appropriate support while maintaining clear expectations."