This corporate plan delivers on the ATO Strategy, released in 2026, which sets the long-term direction for delivering our purpose and vision through a fair, effective and trusted tax system.
The Strategy defines the fundamental shifts needed to move beyond optimising the current system and reshape the underlying settings that drive behaviours and outcomes. These shifts will also underpin improvements to the delivery of our key activities through the priorities outlined in this plan – translating strategic intent into action over the planning period.
The Strategy identifies 5 strategic shifts that will guide our administration of the tax system into the future:
- Simplifying the tax experience so doing the right thing is the easiest thing
- Closing the payment gap so we collect what's rightfully due
- Strengthening the system so it works fairly and as intended
- Partnering across the ecosystem to create a more connected tax system
- Equipping a future ready workforce to succeed in a dynamic environment
These strategic shifts provide the direction for the changes that will be progressed over the life of the Strategy. The priorities set out in this corporate plan identify where our effort and resources will be focused in 2026–27.
Simplifying the tax experience
Simplifying the tax experience focuses on reducing time, complexity and uncertainty for people interacting with the tax system, particularly businesses and their advisers.
This shift requires a deliberate and significant change to how tax is administered, embedding tax into the systems people already use, and prioritising simple, digital solutions. The result is a system where more obligations are met by default, interactions are simpler, and support is targeted to those who need it most.
Priorities for 2026–27:
Implementing the government’s $1,000 instant tax deduction – We will implement the government’s instant tax deduction election commitment to make the tax system simpler and save time for taxpayers. Over 2026–27, we will establish new systems and processes to validate whether an individual is entitled to receive a standard deduction. We will also update relevant tax return guidance materials and deliver targeted communications for individuals, their agents and employers to assist them to understand the tax deduction changes. (Improving delivery against Key activity 2)
Expanding pre-filled data for business – As part of tax time 2026, we will pre-fill information for contractors using taxable payment reporting system data. We continue our focus on identifying opportunities to expand pre-fill for business using third party data, with the aim of delivering similar productivity benefits to businesses that we have for individuals over the past two decades. (Improving delivery against Key activity 2)
Expanding the dynamic Pay-as-you-go instalment (PAYGI) pilot – We will simplify the tax experience for small and medium business through expansion of the dynamic PAYGI pilot to enable businesses to pay instalments based on current business performance. As part of this work, we will work collaboratively with digital service providers to integrate PAYGI calculations into business software. This will reduce the administration burden for business and support more accurate PAYG instalments throughout the year, lowering the risk of over or under payment and helping businesses avoid unexpectedly large tax bills and potential penalties. (Improving delivery against Key activity 1)
Enabling a move to real time taxation – We will align our actions to collectively progress a real-time tax system for business through delivering on our government commitments, maximising changes within existing legislative settings, and identifying opportunities for further reform. (Improving delivery against Key activity 1)
Closing the payment gap
Closing the payment gap focuses on improving payment outcomes, particularly for businesses, by supporting earlier and more consistent payment of tax closer to when income is earned.
This requires a deliberate change to how payment operates across the system, shifting from managing debt after it arises to aligning payment and reporting settings more closely with economic activity. We will make it easier for people to understand what’s owed, when it’s due and how to meet their obligations, with clearer visibility of tax positions and timely support where needed. The result is more consistent, on-time payment, fewer debts accruing and stronger protection of employee entitlements, supporting a more sustainable system where intervention is needed less often.
Priorities for 2026–27:
Implementing Payday Super – From 1 July 2026, we will embed superannuation guarantee payments into routine payroll processes, establishing a new payment norm that helps employers get it right and supports closing the payment gap. This will enable timely and accurate payment, strengthen protection of employee entitlements and improve confidence in the superannuation system. (Improving delivery against Key activity 3)
Strengthening payment performance and debt collection – We will embed consideration of debt and payment positions into every taxpayer interaction and support taxpayers to make payment where possible. Beginning with our frontline services, when we engage with taxpayers we will ensure all outstanding obligations are identified and appropriate resolution pathways are provided, that take into account taxpayer circumstances. We will build this approach across the ATO to strengthen performance of the tax system, promote a level playing field, and enable earlier, more targeted intervention. (Improving delivery against Key activity 1)
Strengthening the system
Strengthening the system focuses on maintaining the integrity, resilience and fairness of Australia’s tax system so they continue to operate effectively in a changing economic and digital environment.
This requires deliberate action to address emerging risks, modernise core systems, strengthen governance and assurance, and ensure the law is administered consistently and transparently. The result is a system that remains robust against abuse, adapts to new business models and technologies, and sustains community trust and confidence.
Priorities for 2026–27:
Enhancing counter-fraud measures – We will strengthen our approach to preventing, detecting and responding to external fraud by enhancing enterprise-wide counter fraud capability and improving how we identify, detect and disrupt fraudulent activity. We will protect revenue and community trust by promoting secure interactions, increasing awareness of fraud risks and consequences, and fostering a strong organisational culture focused on fraud prevention. (Improving delivery against Key activity 1)
Partnering across the ecosystem
Partnering across the ecosystem focuses on working collaboratively with government, industry, intermediaries and the broader community to achieve better outcomes than we can deliver alone.
This requires a shift from operating in isolation to actively designing, delivering and improving the system with others, including through shared data, aligned incentives and early engagement. Effective partnering supports coordinated approach to simplification, payment reform and system integrity at scale. The result is more coordinated policy and administration, reduced duplication, and solutions that are better targeted to real-world needs.
Priorities for 2026–27:
Building system stewardship across digital partners – We will strengthen our partnership with digital service providers to reflect their role as system partners, supporting shared stewardship of the digital ecosystem, and collaboration that improves the tax and superannuation system. Working with the Tax Practitioners Board and the tax profession we will clarify roles and expectations, improve system‑wide readiness and sequencing of change, and jointly manage cross‑system risks to support secure, resilient and trusted digital services at scale. (Improving relationships and engagement under Cooperation)
Equipping a future-ready workforce
Equipping a future-ready workforce focuses on ensuring our people have the skills, capability and flexibility needed to deliver a modern, digital and insight-led tax and superannuation system.
This requires deliberate investment in capability, leadership, culture and ways of working, alongside modern tools and fit-for-purpose workforce models to support contemporary service delivery and decision-making. The result is a skilled, adaptable workforce that can respond to change, make decisions with confidence, and deliver high-quality outcomes for the community.
Priorities for 2026–27:
Embedding our culture commitments – We will embed our refreshed culture commitments as a core enabler of a future-ready workforce. We will activate the commitments through visible SES leadership role-modelling, staff communications and embedding them into core people and governance systems. (Improving efficiency and quality in our organisational capabilities)
Scaling and embedding the responsible use of AI – We will embed and expand the use of automation and AI across our work to improve productivity, strengthen decision‑making and enable higher‑value outcomes. Guided by our focus on trusted data we will uplift workforce capability, tools and governance to support confident, consistent and responsible adoption of AI at scale. This includes building the skills, platforms and safeguards required for safe and effective use. We will apply a clear risk‑based approach that reflects our risk appetite and community expectations, ensuring transparency, accountability and appropriate human oversight. This will enable more efficient operations, consistent insight‑driven outcomes, and greater value for the Australian community. (Improving productivity and decision-making in our organisational capabilities)