Almost $1bn to the ATO for Tax Compliance
The Government has allocated $999 million over four years to expand the ATO’s compliance programs, which include:
- Tax Avoidance Taskforce
- Shadow Economy Compliance Program
- Personal Income Tax Compliance Program
- Tax Integrity Program (for medium/large businesses and high-net-worth individuals)
These initiatives are projected to generate a threefold return of $3.2 billion.
$700 Million in External Contractor Cost Cuts
The Government plans to further reduce its reliance on consultants, contractors, and labor hire. By continuing to trim external labor, the budget estimates a saving of $718 million by 2028-29.
Funding for the TPB to Strengthen New Standards
The Government will invest $27.4 million into the Tax Practitioners Board (TPB) over the next four years to target “high-risk practitioners.” High-risk practitioners include those who:
- Submit false or incorrect returns
- Have a history of non-compliance with tax returns
- Fail to meet personal tax obligations
- Are involved in fraud or criminal activities
- Promote aggressive tax schemes
This funding is expected to generate $47 million in additional tax revenue. The two points above are becoming increasingly common targets for TPB action.
Additionally, the Government is set to update the registration process for tax practitioners, making it easier for tax and BAS agents to re-enter the profession after a career break.