• Anti-avoidance - Federal Budget 2019

Extra funding to ATO for debt collection

The Government has announced in this Budget that it will provide further resources for the ATO with the intention of improving their ability to recover unpaid tax and superannuation.

The measures are deliberately targeted at larger businesses and high wealth individuals. The Government specifically states that these resources will not extend to small business tax and superannuation liabilities.

Ensuring big businesses pay their fair share

By setting aside an additional $42.1 million over the next four years, the Government has increased their focus on debt collection. In doing so, larger businesses and wealthier individuals will be held accountable to pay their fair share of tax and superannuation.

This budget measure is expected to result in a gain of $103.6 million and increased GST payments to the States and Territories of $41.8 million.

BDO Comment

Combined with the additional funding for the Tax Avoidance Taskforce announced in this Budget, we interpret this measure as an investment in collecting all additional taxes assessed as a result of the Taskforce’s activities. Taxpayers with outstanding tax debts will need to find a way to pay. Those who meet their obligations on time will most likely welcome this move as a levelling of the playing field.