As announced in the federal budget, the government will provide $1 billion over four years from 2019-20 to the ATO to extend the operation of the Tax Avoidance Taskforce and to expand the Taskforce’s programs and market coverage.
The additional funding is expected to rake in $3.6 billion over the forward estimates period.
According to budget papers, the measure will boost the tax avoidance taskforce’s ability to target multinationals, large public and private groups, trusts and high-net-worth individuals.
The tax integrity measure will allow the ATO to increase its scrutiny on specialist tax advisers and intermediaries that promote tax avoidance schemes and strategies.
Tax and super liabilities
Further to the $1 billion funding, the Tax Office is set to receive an additional $42.1 million over four years to increase its activities to recover unpaid tax and superannuation liabilities from larger business and high-net-worth individuals.
It is understood that this new measure will not extend to small businesses.
This measure is estimated to have no revenue impact in fiscal balance terms over the forward estimates period.
In underlying cash balance terms, this measure is estimated to have a gain to the budget of $103.6 million over the forward estimates period.
The measure is estimated to increase goods and services tax payments to the states and territories by $41.8 million over the forward estimates period.
More to come.
Jotham Lian is the news editor of Accountants Daily, the leading source of breaking news, analysis and insight for Australian accounting professionals.
With a focus on breaking news and exclusive analysis, Jotham keeps Accountants Daily readers up to date with company moves, tax updates and essential business and client strategy.
Before joining the team in 2017, Jotham wrote for a range of national mastheads including the Sydney Morning Herald, and Channel NewsAsia.