$1bn ATO ‘sugar hit’ to tackle large corporate's and high net wealth individuals

The Government will provide $1bn over four years from 2019-20, including $6.5 million in capital funding, to the ATO to extend the operation of the Tax Avoidance Taskforce and to expand the Taskforce’s programs and market coverage. For this, the ATO is expected to produce a $3.6bn budget gain.

Tax avoidance schemes and strategies are the focus of this funding.

Recovering unpaid tax and superannuation liabilities

An additional $42m has been provided to the ATO to recover unpaid tax and superannuation liabilities focused on larger businesses and high wealth individuals. The measure is expected to create a budget gain of $103.6m.

ABN status stripped for non-compliance

From 1 July 2021, Australian Business Number (ABN) holders will be stripped of their ABNs if they fail to lodge their income tax return. In addition, from 1 July 2022, ABN holders will be required to annually confirm the accuracy of their details on the Australian Business Register.Currently, ABN holders are able to retain their ABN regardless of whether they are meeting their income tax return lodgement obligations or the obligation to update their ABN details.

Support for small business in tax disputes

This previously announced measure provides $57m in funding over 5 years to provide access to a fast, low cost, independent review mechanism for small businesses in dispute with the ATO. The funding is directed to the Department of Jobs and Small Business, the Administrative Appeals Tribunal (AAT) and the Australian Taxation Office (ATO).

More information· Backing small business – simplifying and resolving tax disputes

Sham contracting unit established

A new dedicated sham contracting unit will be created within the Fair Work Ombudsman. The unit’s role is to address sham contracting behaviour by some employers, particularly those who knowingly or recklessly misrepresent employment relationships as independent contracts to avoid statutory obligations and employment entitlement.

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