| Picture: “Australian Taxation Office in Townsville” by Greditdesu is licensed under CC BY-SA 4.0.
The Australian Taxation Office (ATO) Corporate Plan for 2024–25 outlines the roles, key activities, and strategic direction of the ATO, Tax Practitioners Board (TPB), and the Australian Charities and Not-for-profits Commission (ACNC). The plan provides a roadmap for achieving the ATO’s objectives. Below is an overview of the plan.
INTRODUCTION
- Coverage: The plan encompasses the functions of the ATO, TPB, and ACNC, detailing their roles, activities, capabilities, key partnerships, and risks.
- Purpose: To foster economic and social wellbeing by encouraging participation in tax, superannuation, and registry systems while ensuring public trust in the tax system and charity sector.
- Accountable Authority: The Commissioner of Taxation administers Australia’s tax system, superannuation, Australian Business Register (ABR), director IDs, and the Register of Foreign Ownership of Australian Assets. Under the Public Governance, Performance and Accountability (PGPA) Act, the Commissioner is the Accountable Authority for the listed ATO entity, comprising the ATO, TPB, ACNC, and ACNC Advisory Board.
- Independence: Despite being part of the ATO listed entity, TPB and ACNC maintain operational independence to perform their functions in line with their legislative requirements.
KEY FOCUS AREAS FOR 2024–25
The ATO’s strategic focus for the year includes enhancing tax system integrity, improving debt collection, countering fraud, and supporting small businesses through digital transformation.
- Fostering Willing Participation: Encourage compliance by providing support and clear information to taxpayers.
- Strengthening Integrity: Improve trust in the tax system, superannuation, and business registry systems through transparency and accountability.
- Harnessing Data and Digitalisation: Use data and advanced analytics to modernize services and enhance operational efficiency.
- Enhancing Cybersecurity: Strengthen systems to protect against cyber threats and safeguard sensitive taxpayer data.
STRENGTHENING DEBT COLLECTION
- New Payment Strategy: Implement a tailored approach based on client segmentation, compliance history, and capacity to pay.
- Focus Areas: Increased attention on business debt, including superannuation guarantee, Pay As You Go (PAYG) withholding, and Goods and Services Tax (GST).
- Support and Enforcement: Support engaged clients to meet their obligations while taking swift action against those deliberately avoiding payment.
ENHANCING COUNTER FRAUD MEASURES
- Fraud Detection: Use real-time data monitoring and analytics to detect fraudulent activities.
- System Vulnerabilities: Actively identify and address control weaknesses in the system.
- Firm Action: Ensure consequences for fraudulent behavior to maintain system integrity.
SUSTAINING MULTINATIONAL AND LARGE TAXPAYER PERFORMANCE
- Compliance Improvement: Focus on new high-risk tax areas for multinational corporations and large businesses.
- Tax Transparency: Improve public reporting on large business tax information to boost transparency.
- Guidance and Support: Provide timely, tailored advice to large businesses.
ENHANCING CYBERSECURITY
- Cybersecurity Program: Continue to develop a robust cybersecurity program aligned with the government’s 2023–2030 Cyber Security Strategy.
- Multi-layer Security: Implement advanced security layers to protect systems and data.
- Cyber Awareness: Promote cyber safety among clients and enhance staff cybersecurity skills.
STRENGTHENING THE VALUE OF DATA AND DIGITAL
- Digital Transformation: Expand data and digital capabilities to offer seamless digital experiences for clients and staff.
- Automation and AI: Increase operational efficiency through responsible use of automation and artificial intelligence (AI).
- Risk Management: Enhance risk management practices to safeguard data and analytics capabilities.
FUTURE SMALL BUSINESS DIGITALISED TAX EXPERIENCE
- Consultation and Design: Collaborate with partners to develop a digital approach that simplifies tax obligations for small businesses.
- Digital Solutions: Implement integrated, scalable digital solutions to assist small businesses in accurate reporting and timely payments.
PERFORMANCE MEASURES
The ATO will use specific performance measures to assess progress towards its objectives, ensuring transparency and accountability. These measures include:
|
Key Activity |
Performance Measure |
2022–23 Latest Result |
2023–24 Target |
2024–25 Target |
2025–26 Target |
2026–27 Target |
2027–28 Target |
Data Sources |
|---|---|---|---|---|---|---|---|---|
|
Registration |
Proportion of registered companies and individuals |
66.5% (companies) |
78% (companies) |
78% (companies) |
78% (companies) |
78% (companies) |
78% (companies) |
ASIC, ATO systems, ABS data |
|
Lodgment |
Proportion of activity statements and tax returns lodged on time |
72.6% (activity statements) |
78% (activity statements) |
78% (activity statements) |
78% (activity statements) |
78% (activity statements) |
78% (activity statements) |
ATO systems |
|
Tax Gap |
Proportion of revenue gap |
7% |
Reduce gap |
Reduce gap |
Reduce gap |
Reduce gap |
Reduce gap |
ATO systems, models, economic data |
|
Total Revenue Effects |
Revenue from compliance activities |
$20.3 billion |
$16.0 billion |
$16.0 billion |
$16.0 billion |
$16.0 billion |
$16.0 billion |
ATO systems, models |
|
Payment |
Proportion of liabilities paid on time by value |
89.9% |
88% |
88% |
88% |
88% |
88% |
ATO systems |
|
Debt |
Ratio of collectable debt to net tax collections |
8.6% |
7.5%-8.0% |
6.5%-7% |
Below 6% |
Below 6% |
Below 6% |
ATO systems, financial statements |
The ATO Corporate Plan for 2024–25 outlines a strategy to enhance the integrity and efficiency of the Australian tax and superannuation systems. By focusing on key areas such as debt collection, fraud prevention, cybersecurity, and digital transformation, the ATO aims to foster willing participation, support economic stability, and ensure public confidence in Australia’s tax administration. The outlined performance measures will help track the ATO’s progress and accountability towards achieving its objectives.
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