Welcome and introductions
The co-chairs welcomed members and guests to the meeting and noted recent Australian Taxation Office (ATO) restructures. Members wanted an action item relating to the provision of timing for completion of processing requests and specific ATO contacts to remain open, pending further discussions at a future meeting.
Shadow economy
Findings from recent research into shadow economy behaviour was shared, showing changes and adaptations, with new activities emerging and others expanding in scale or scope. The ATO is incorporating these insights into its compliance activities.
The research showed that while the community was generally hesitant to report shadow economy behaviour, they were more likely to report if entities were operating entirely outside the tax system or were showing behaviours that might cause personal harm to others.
Recommendations for the ATO included:
- focusing on small attainable steps and clear calls to action
- targeting specific behaviours and audiences
- taking a customer centric/behavioural lens.
ATO activities now include:
- targeting deliberate behaviours by increasing compliance on industries of risk
- expanding work with associations and industries for focused communications
- investing in new analytical data models, expanding pre-fill and data matching
- increasing the visibility of consequences of participation in the shadow economy
- using mobile enforcement and new priority strike teams
- aligning future automation with regulatory reform and the Tax Admin 3.0 vision.
Member comments
A suggestion for more community education to address the shadow economy was made, particularly for people new to Australia and to help small and medium enterprises better understand the tax system.
While behavioural changes are being implemented, members wondered whether a more systemic solution was needed in industries with a high degree of shadow economy penetration. The ATO advised it is championing people doing the right thing and highlighting consequences for bad behaviour.
Members raised issues with PayID, with payments made to different mobile phone numbers, and where several businesses operate under the one Australian business number.
It was noted that structural reforms had helped European countries tackle their shadow economies. Similar reforms in Australia could focus on making it easier for honest businesses and harder for those operating outside the system.
Community and industry insights roundtable
Members discussed a range of issues under this agenda item including:
- Emerging pressures on the goods and services tax (GST) system, including rising ATO debt levels, the introduction of Payday Super from 1 July, high fuel prices, and the removal of card surcharges. The ATO noted the critical role of advisers and intermediaries in supporting businesses as these factors converge, and flagged debt management as a potential future agenda item.
- ATO guidance on the GST treatment of medical aids, appliances, and health-related products. There was also interest in greater transparency on targeted taxpayer segments and early visibility of campaigns to support client engagement. The ATO will consider what further information can be shared.
- A member case study that highlighted issues following a Combined Assurance Review, including lack of notification of a supplementary annual GST return. The ATO outlined work is underway to address system and process gaps and committed to improving information sharing and collaboration between the Large Business and GST Stewardship Groups.
GST cashflow advertising campaign
The ATO External Communication team took members through its GST cashflow advertising campaign which encourages businesses to keep GST separate from business cash flow to prevent unexpected tax debts and minimise new GST debt. The ads have been seen more than 22 million times since the campaign began in 2024-25 with 195,000 clicks to the campaign landing web page. Comments on social media have been largely supportive, with a small number of critical comments.
The campaign targeted businesses with the focus on small businesses.
Member comments
Members discussed the demographic/generational challenges associated with reaching specific groups and below-the-lines communications the ATO provides.
Discussions ranged to webinars the ATO runs that are tailored for small businesses and advertised through the ATO and other forums such as chambers of commerce and local councils. Links to these webinars will be provided to stewardship group members.
The ATO will email members a range of specific focus questions following the meeting that they can take back to their networks to gather information and insights on, and feed these back to the ATO.
Simplifying tax administration for business
An overview of the Regulatory Reform Program was provided, outlining some of the key initiatives being undertaken and explored to transform the business experience and interactions with the tax system.
Topics discussed included:
- pre-fill for individuals in business
- dynamic pay as you go instalments
- moving businesses from quarterly to monthly lodgment cycles
- eInvoicing.
The ATO advised it will continue to engage businesses, tax professionals and digital partners through stewardship groups to discuss how to progress existing concepts and identify and develop new opportunities.
Member comments
Members asked for greater visibility of the data the ATO holds throughout the year to better inform client advice.
There was general support for moving businesses from quarterly to monthly lodgments. Businesses engaging or changing tax professionals, paying off debt, lodging outstanding tax returns or exiting the system were good outcomes. Members said the ATO could do more to remove taxpayers from the GST system that are not viable earlier.
There were broad discussions and a range of views on eInvoicing and eReporting. With respect to eReporting, there were mixed views on whether the ATO should consume all transaction data.
Legislation and ATO updates
Attendees were provided with an opportunity to ask questions on updates which included:
- legislation and consultation
- news and program updates
- GST discussions at other ATO stewardship groups
- GST public advice and guidance
- GST litigation.
Attendees
|
Organisation |
Attendee |
|---|---|
|
ATO |
Emma Tobias (Co-chair), International, Support and Programs |
|
ATO |
Hayley Busuttil, International Support and Programs |
|
ATO |
Narda Phillips, Enterprise Solutions and Technology |
|
ATO |
Rowan Fox, Small Business |
|
ATO |
Sarah Vawser, Individuals and Intermediaries |
|
ATO |
Tanya O'Callaghan, International Support and Programs |
|
Australian Banking Association |
Chris Plakias |
|
Australian Bookkeepers Association |
Kerrie Jarius |
|
Chartered Accountants Australia and New Zealand |
Denis McCarthy |
|
Corporate Tax Association |
Stephanie Caredes |
|
CPA Australia |
Jacqui Hardwick |
|
Digital Service Providers Australia New Zealand |
Matthew Prouse |
|
Independent Member |
Jennee Chan |
|
Law Council of Australia |
Rhys Guild |
|
Property Council of Australia |
Elke Bremner |
|
RSM Australia |
Sam Mohammad |
|
Small Business Representative |
Amanda Gascoigne (Co-chair) |
|
The Tax Institute |
Bastian Gasser |
|
Treasury |
Kirby Wu |
|
University of New South Wales |
Michael Walpole |
|
Wesfarmers Limited |
Caryn Bovell |
Guests
|
Organisation |
Attendee |
|---|---|
|
ATO |
Claudia Bianco, ATO Corporate |
|
ATO |
Jack Messaike, Law Design and Practice |
|
ATO |
Jenny Lin, Private Wealth |
|
ATO |
Lara Cavanough, Public Groups |
|
ATO |
Melinda Balkin, Individuals and Intermediaries |
|
ATO |
Tony Goding, Small Business |
|
Department of Treasury and Finance, South Australia |
Eka Baker |
|
Treasury |
Blake Ford |
Apologies
|
Organisation |
Member |
|---|---|
|
ATO |
Narda Phillips, Enterprise Solutions and Technology |
|
Chartered Accountants Australia and New Zealand |
Kevin O'Rourke |
|
Treasury |
Emma Baudinette |