This article is part of our 2024-25 Federal Budget series. To view all articles, see The Price is Right: 2024-25 Budget or the bottom of this page.

Funding ATO priority targets

Beginning the first income year after Royal Assent of enabling legislation

The Government announced that it will provide $187 million over four years from 1 July 2024 to the ATO to strengthen its ability to detect, prevent and mitigate fraud against the tax and superannuation systems. 

Specific funding has been provided to the ATO for key targets. These include:

Personal income tax - The ATO’s Personal Income Tax Compliance Program will be extended for one year from 1 July 2027. This measure is estimated to increase receipts by $180.3 million and increase payments by $44.3 million over the 5 years from 2023–24.

Anti-avoidance taskforce - extend the ATO’s Tax Avoidance Taskforce for two years from 1 July 2026. This measure is estimated to increase receipts by $2.4 billion and increase payments by $1.2 billion over the 5 years from 2023–24. 

The Tax Avoidance Taskforce has a strong focus on the top 1,100 public and multinational businesses and the top 500 privately owned groups, but also covers all 5,000 high wealth private groups that control net wealth exceeding $50 million and public and multinational businesses outside of the ATO’s justified trust programs. 

As of 30 June 2023, the taskforce has assisted the ATO raise $32.7 billion in tax liabilities.

Child care providers - $4.8 million over four years from 2024–25 to ensure satisfactory engagement with the Australian tax system regarding fitness and propriety requirements of existing and new child care providers (relating to the Child Care Subsidy Program).

Pursuing entities in liquidation with unpaid superannuation obligations

Date From 1 July 2024

The Government has announced that it will recalibrate the Fair Entitlements Guarantee Recovery Program to pursue unpaid superannuation entitlements owed by employers in liquidation or bankruptcy from 1 July 2024.

The Fair Entitlements Guarantee Recovery Program aims to improve the recovery of employment entitlements advanced under the Fair Entitlements Guarantee (FEG). The FEG is a legislative safety net scheme of last resort with assistance available for eligible employees. [1]

If you have any questions about any of these initiatives, please email us or phone our team on 02 9899 3044.

References:

1. Australian Government, Department of Employment and Workplace Relations, Fair Entitlements Guarantee Recovery Program, accessed 14 May 2024.