Show download pdf controls
  • ATO action to reduce the gap

    Large super funds are subject to significant prudential and regulatory supervision in addition to high levels of ATO attention and engagement. We work closely with them to help them pay the right amount of tax. These factors are reflected in the relatively low tax gap estimate for this group.

    As outsourcing is a significant feature of the industry, the quality and integrity of third-party data is essential for accurate reporting by the funds. This can lead to third party reporting errors and therefore unpaid tax. We recognise the quality and integrity of third-party data is key to accurate reporting by funds, and are broadening our existing focus on fund governance to ensure appropriate checks and controls are in place to provide added levels of assurance around third party data.

    We gather intelligence through pre and post lodgment compliance reviews and industry consultation to identify emerging risks.

    We focus on preventative action including treatment strategies to address legal or systemic issues. We also work with industry to resolve unsettled interpretive matters to promote willing participation.

    Key strategies include:

    • working with Treasury to support law design and settling areas of interpretative uncertainty
    • identifying existing and emerging areas of uncertainty and consulting with industry to develop public advice and guidance to help large super funds comply (for example PCG 2018/2 Propagation arrangements adopted by registrable superannuation entities)
    • early engagement with key industry participants
    • our Top 100 and Top 1000 programs to assure these funds are paying the correct amount of income tax
    • continuing our focus on fund governance to provide added levels of assurance around third party data
    • undertaking assurance activities in respect of key service providers
    • measuring the impact of our activities and long-term investment in law design and interpretation.
      Last modified: 10 Jan 2020QC 61086