The Government has resolved to extend compliance programs for GST and personal income. The Budget also includes measures which are aimed at minimising the regulatory burden for general insurers and small business, and ensuring compliance with PRRT amendments.
Compliance programs
- GST Compliance Program
- The Government will provide $588.8 million to the ATO over 4 years from 1 July 2023 to continue a range of activities that promote GST compliance. Funding these activities will also help the ATO develop more sophisticated analytical tools to combat emerging risks to the GST system. This measure is estimated to increase receipts by $7.6 billion and increase payments by $3.8 billion over 5 years from 2022–23.
- Personal Income Compliance Programs
- The Government will provide $89.6 million to the ATO and $1.2 million to Treasury to extend the Personal Income Tax Compliance Program for two years from 1 July 2025 and expand its scope from 1 July 2023. This extension will enable the ATO to continue to deliver a combination of proactive, preventative and corrective activities in key areas of non-compliance, and to expand the scope of the program to address emerging areas of risk. This measure is estimated to increase receipts by $474.9 million and increase payments by $90.8 million over 5 years from 2022–23.
Other regulatory updates
- Minimising the regulatory burden for general insurers
- The Government will introduce legislation, commencing on or after 1 January 2023, to amend the tax law to minimise the regulatory burden facing the general insurance industry and reduce compliance costs. This amendment will allow general insurers to continue to use audited financial reporting information, which is calculated according to the new standard, as the basis for their tax returns.
- PRRT amendments
- As discussed in the Energy and Resources section above, the Government will amend the PRRT. As part of these amendments, the Government will provide $4.4 million in resourcing to the ATO to administer and ensure compliance with this measure.
- Reducing compliance costs for small business
- As discussed in the Small Business section below, the Government is improving cash flow and reducing compliance costs for small businesses by allowing immediate deductions on assets valued under $20,000. The provisions preventing assets valued at $20,000 or more from being placed into the small business simplified depreciation pool will be suspended until 30 June 2024.
Federal Budget Panel Discussion
Digest what was (or wasn’t) in the Federal Budget, what that means, and whether we now anticipate significant tax reform.
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