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  • Principles and approaches to measuring gaps

    Tax gaps are estimates of the difference between the amount of tax we collect and the amount we estimate we would have collected if every taxpayer was fully compliant with tax law. We use appropriate methods to calculate gap estimates across the range of taxes we collect in Australia.

    The process of gap estimation is technically complex – in essence, it measures the unobservable. As such, our scope, methods, data and estimates will continue to evolve with improvements. Revisions to our estimates are likely in future releases.

    For each gap, we provide our current analysis for the year on that topic, including the specific methodology used, data sources and key assumptions. We cover limitations specific to each gap and the reliability of the estimate.

    Contact us at taxgap@ato.gov.au if you require further details or to provide feedback.

    This information complements the Australian tax gaps – overview.

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      Last modified: 19 Oct 2020QC 53168