$1bn boost for tax avoidance crackdown

As announced in the federal budget, the government plans to provide $1 billion over four years from 2019–20 to the ATO, in order 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 taskforce’s ability to target multinationals, large public and private groups, trusts and high-wealth individuals.

The tax integrity measure will be aimed to 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-wealth 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 GST payments to the states and territories by $41.8 million over the forward estimates period.