A summary of our observations around assurance ratings for income tax and GST during 2023 and what this report covers.
Latest findings
As of 30 June 2023, we have completed 1,332 assurance reviews on 1,085 taxpayers across the Top 1,000 tax performance program and the Top 1,000 combined assurance program. Within the combined assurance program, we have completed second reviews for 247 taxpayers as at 30 June 2023.
As a result of this work:
- We have assured around $79.1 billion in income tax paid by Top 1,000 taxpayers since we started assurance reviews in 2016.
- We have obtained high assurance that 24% of taxpayers have paid the right amount of income tax for the years reviewed with 84% of taxpayers having achieved high or medium assurance.
- We have observed positive improvements in tax compliance since commencing the program in 2016, with the number of taxpayers achieving high assurance increasing and the number of taxpayers achieving low assurance decreasing.
- From 2020, we increased the benchmark required to achieve high assurance, as our expectations in relation to tax governance increased. ATO guidance has assisted to support taxpayers in this area, with positive improvements in governance (and consequently overall assurance ratings) now being observed.
- We continue to escalate cases for further review or audit due to specific concerns with identified positions, with 13% of reviews in 2023 being escalated.
Additionally, we have now completed 602 reviews for GST across our various programs, with 15 taxpayers being reviewed for a second time.
Based on the outcomes of these reviews:
- We have obtained high assurance that 31% of taxpayers have paid the right amount of GST for the tax years reviewed, with 96% of taxpayers having achieved high or medium assurance that they have paid the correct amount of GST.
- We have only identified specific concerns with respect to 4% of taxpayers' compliance with the GST laws.
- We continue to see high rates of voluntary disclosures, with more than 40% of taxpayers making voluntary disclosures before or during a review.
- Whilst the majority of taxpayers identified with specific concerns are directed to undertake further action such as an amendment or voluntary disclosure to correct a GST shortfall, approximately 4% of taxpayers reviewed in 2023 were escalated for further ATO action through a specific review or audit.