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  • GST voluntary compliance program

    The GST Voluntary Compliance Program (VCP) was established in 2010 and has been a significant part of the ATO’s administration of the GST. The VCP has provided additional funding to the ATO to actively promote voluntary compliance, provide more visibility to deter non-compliance, and ensure a level playing field for Australian businesses. The VCP – which was due to terminate on 30 June 2019 – was extended for a further four years through to 2022–23.

    The VCP targets non-compliance and reducing the GST gap through a range of preventative and enforcement strategies. It is monitored by formal reporting to states and territories.

    The program’s objectives include:

    • detecting and reducing inflated or fabricated GST refund claims
    • investigating systemic or deliberate under-reporting of GST
    • more direct contact between the ATO and non-lodgers
    • more direct contact between the ATO and taxpayers with a GST debt
    • prosecuting the more flagrant non-compliers, and have related benefits flow from the publicity these cases generate
    • supporting those trying to do the right thing.

    In 2018–19, compliance and lodgment enforcement activities exceeded our(a) GST planned commitment of $738 million by $931 million – raising total liabilities of $1.7 billion. Debt collection activities exceeded the planned commitment of $171 million by $89 million – total actual collections of $260 million.

    Since its inception, the program has returned $8.7 billion in GST revenue to the states and territories through to June 2019.

    The new program commenced on 1 July 2019. Additional focus areas include contemporising ATO risk modelling, targeting business activity statement lodgment rates, and proactively engaging large businesses on their GST obligations.

    The additional investment enables the ATO to keep pace with unprecedented rapid development and sophistication in analytic techniques, and counter increasingly sophisticated and continually changing threats from fraudsters.

    The ATO will continue to refine risk and intelligence strategies to deal with new and emerging threats and challenges to the GST system, to maintain the confidence and trust of the community.

    NOTES:(a) Planned figures for quadrant 3 'non-lodgers' include indirect and direct lodgment figures. Indirect lodgment data relates to that where no ATO compliance activities have been actioned. Actuals do not include indirect lodgment data.
      Last modified: 01 Jul 2020QC 61031