Modernising Digital Assets and Payments Regulation
Funding $7.5 million over 4 years from 2024-25 for modernising digital assets and payment regulation. The government will:
- implement and consult to regulate and licence platforms that have digital assets and progress-related reforms
- launch a new regulatory framework for payment service providers
Extension of Transitional Reporting for Charities
The transitional reporting arrangement for charity will be extended for 5 years. This regulation aims to minimise the regulatory reporting burden on not-for-profit entities under the Australian Charities and Not-for-profits Commission Act 2012 by providing that the ACNC Commissioner may treat a statement or other document provided under Australian law to an Australian Government agency by a registered entity.
ATO Counter Fraud Strategy
The government will fund $187 million over 4 years from 1 July 2024 to the ATO to boost its ability to detect, prevent and reduce fraud against the tax and superannuation systems.
Funding ATO Priority Targets
- Personal income tax – The ATO’s Personal Income Tax Compliance Program will be extended from 1 July 2027 for one year. It has been estimated that this measure will increase receipts by $180.3 million and increase payments by $44.3 million over the 5 years from 2023–24.
- The shadow economy – the ATO’s Shadow Economy Compliance Program will be extended from 1 July 2026 for two years. It has been estimated that this measure will increase receipts by $1.9 billion and increase payments by $610.2 million over the 5 years from 2023–24.
- Anti-avoidance taskforce – the ATO’s anti-avoidance taskforce will be extended from 1 July 2026 for 2 years. It has been estimated that this measure will increase receipts by $2.4 billion and increase payments by $1.2 billion over the 5 years from 2023–24.
- Child care providers – $4.8 million from 2024–25 over four years to ensure satisfactory engagement with the Australian tax system in relation to fitness and propriety requirements of existing and new child care providers.
- Identify checking – $155.6 million from 2024–25 over two years to continue operating and enhancing the Government’s Digital ID, myGovID, and the system that supports authorised access to various government business services.
- Migrant workers – $1.9 million in 2024–25 for a data-matching pilot between the ATO of income and employment data and the Department of Home Affairs to reduce abuse of Australia’s labour market and migration system and exploitation of migrant workers.
- E-invoicing – $23.3 million from 2024–25 over four years to continue to oversee and operate the secure e-invoicing network to combat online fraud and scams through mandatory industry codes.
Decreased Levy for Sweet Potatoes
The Government will reduce the overall levy rate on sweet potatoes from 1.5% to 0.5% from 1 July 2024.
Delayed Widening of the General Anti-Avoidance Rules
The 2023-24 Budget measure to extend Part IVA which was scheduled to start on 1 July 2024, has been postponed so that it applies to income years commencing on or after the date of amending legislation gets Royal Assent.
Delayed Streamlining Fuel and Alcohol Excise Administration
The start date for streamlining fuel and alcohol excise administration will be changed.
Australian Plantation Forestry Entities Exempt from Thin Cap Changes
Australian plantation forestry entities will be exempt from the thin capitalisation earning-based rule. They will be allowed to apply the former asset-based thin capitalisation rules.
Measures Not Proceeding
- Black Economy — strengthening the Australian Business Number system will not proceed.
- The measure, Denying deductions for payments relating to intangibles held in low- or no-tax jurisdictions, will not proceed.
ATO Discretion not to Use Refunds to Offset Old Debts
Tax amendments will be made to give the Commissioner of Taxation the discretion not
to use a taxpayer’s refund to offset old tax debts, but solely for debts put ‘on hold’ before 1 January 2017. This discretion will apply to small businesses, individuals and not-for-profits, and will secure the Commissioner’s current administrative approach.
Pursuing Entities in Liquidation with not Paid Superannuation Obligations
From 1 July 2024, the government will recalibrate the Fair Entitlements Guarantee
Recovery Program to pursue unpaid super entitlements owed by employers in liquidation or bankruptcy.
‘Payday’ Super Compliance
Funding $60 million over four years from 2024–25 to increase Productivity, Education and Training Fund to support practical activities by employer and worker representatives to boost workplace productivity. Workplaces will be encouraged to implement policy changes such as the introduction of payday superannuation.
Funding Anti-Money Laundering and Counter-Terrorism Financing Reform
Funding $168 million from 2024–25 over four years to implement reforms to improve Australia’s Anti-Money Laundering and Counter-Terrorism Financing Act 2006.
Preventing Greenwashing and Managing Sustainable Finance Markets
- Greenwashing – ASIC has been provided with $10m over 4 years and $1.9 million ongoing to check and take action against those who are involved in greenwashing and other sustainability-related financial misconduct.
- Green bonds – $5.3 million from 2024-25 over 4 years and $1.2 million ongoing has been provided to Treasury and APRA to provide the sustainable finance framework.
- Labelling regime – $1.2 million has been provided to ASIC and Treasury to consult on the design of a labelling regime to stimulate the use of sustainability labels on retail investment products.