Goods and services tax

The goods and services tax (GST) gap is the difference between the amount of GST payable under the law (theoretical GST liability) and the amount actually collected by us (actual GST revenue) for a defined period, typically a financial year.

We have published the GST gap since 2012 and it is the most detailed gap analysis we have conducted.

Our broad approach to estimating the gap

We adopt a top-down methodology to estimate the GST gap using a combination of ATO data and external data, such as:

  • ABS National Accounts
  • ABS Household Expenditure Survey
  • Treasury Tax Expenditure Statements.

The GST gap conceptual framework is represented below. It shows the GST gap against the revenue base, as well as taxpayer behaviours associated with voluntary compliance, enforced compliance and GST not reported or paid.

GST gap conceptual framework

This image shows the GST gap against the GST revenue base, including behaviours associated with voluntary compliance and those associated with enforcement and the tax gap.

    Last modified: 05 Nov 2015QC 47278