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Employment Taxes - ATO Annual Report 2023-24
What actions do you need to take as an employer on focus areas called out by the ATO?
The Australian Taxation Office (ATO) recently released their annual report which covered observations and changes made to employment taxes from 2023-2024. Broadly, the ATO observed a decrease in tax compliance overall across large corporate groups. The ATO did report improvement amongst the small business cohort with increase in business tax compliance, although this group still remain consistently responsible for the largest portion of unpaid tax in Australia. There is an expectation the ATO will prioritise the Tax Avoidance Taskforce, with further funding and resourcing. Large audits and litigation are expected which will see clarification of law as well as testing legal principles, hopefully with the outcome of encouraging and ensuring compliance. The net tax gap is estimated at 7.5% across the board.
The ATO continued to adopt a firmer approach towards employers not meeting their tax obligations. Twenty-three (23) legislative instruments were released that supported lodgment of various returns, clarification of PAYG Withholding rates, reduced fringe benefits tax compliance cost and provided reporting and withholding exemptions. The net-tax gap for superannuation guarantee (SG), PAYG Withholding and FBT, are yet to be published for the 2022-23 tax year.
Below is a summary of the report findings and their impacts on employers.
FOR MORE INFORMATION
If you would like to learn more about the topics discussed in this article, please contact Rick Kimberley or Gina Nedeljkovic.
