• Wealthy individuals

    Since 1996, we have maintained an ongoing program focusing on the income tax compliance of highly wealthy individuals to ensure they pay the right amount of tax. We define a highly wealthy individual as an Australian resident who controls net assets of over $30 million. In 2012–13, we conducted over 730 audits and reviews on highly wealthy individuals. These activities raised around $1.1 billion in liabilities and we collected $273.1 million in cash (payment on liabilities raised are collected progressively over subsequent years).

    In the 2009–10 Budget, we received specific funding over a four-year period to expand this compliance focus to ensure individuals controlling net assets of between $5 million and $30 million pay the right amount of tax. In 2012–13, we completed 2,380 compliance activities amongst these taxpayers, raising $308.3 million in liabilities and $142.0 million in cash collections.

    Over the past four years, we completed over 7,000 compliance activities amongst these taxpayers, raising $640.3 million in liabilities and $225.0 million in cash collections. We also found that companies owned by wealthy individuals subject to our compliance activities paid a higher percentage of tax in subsequent years compared to those that had no compliance intervention.

    In October 2012, the government extended this specific funding for another four years.

      Last modified: 02 Mar 2015QC 42709