Our operating environment is complex and interconnected, presenting both opportunities and challenges to the achievement of our purpose and vision. It is shaped by changing expectations of government, the Australian community, taxpayers, our partners and our workforce.
To deliver on our commitments now and into the future, we must remain agile and adaptable in responding to factors within and beyond our control, including economic uncertainty, emerging technologies, large scale cyber incidents and extreme weather events.
The government has identified lifting productivity as a key priority for its current term, with clear expectations that regulators contribute by reducing regulatory burden. In response, we are prioritising regulatory reform to deliver productivity benefits, including through smarter use of data and embedding tax compliance into business processes.
Megatrends and our approach
Economic conditions and geopolitical uncertainty
Geopolitical and economic conditions continue to be shaped by international conflict, changes in international trade and heightened economic uncertainty. The challenges facing governments and revenue collection agencies worldwide are shared. We will continue to collaborate with other tax jurisdictions to ensure we collectively grapple with international tax challenges.
A range of challenges may adversely affect taxpayer compliance and payment behaviour, increasing debt levels and reducing revenue collection. Monitoring these trends is essential to adapting our strategies and mitigating negative impacts.
The globalisation of the economy, climate change and Australia’s position in the geopolitical environment will affect our policy and regulatory environment into the future. We need to remain responsive to the effects of political and economic uncertainty, climate change and natural disasters, while we continue to deliver on our commitments to government and to the Australian community.
Technology, data and security
It is vital that all services we provide make it easy for all taxpayers to engage with the tax and superannuation systems. To do this we are harnessing the digitalisation of the Australian economy to move, over time, to a system where ‘tax just happens’ – that is, where tax is collected using the systems Australian people and businesses already use to transact and manage their affairs. We also recognise the importance of supporting people experiencing vulnerability when they interact with the tax and superannuation systems.
As custodians of large data sets held in trust for the Australian community, we use data and analytics (including automation and AI) and the insights they provide to help us administer the tax and aspects of the superannuation systems more effectively, tailor our regulatory services and inform our decision-making. We ensure our data is appropriately protected, fit-for-purpose, well governed and used and shared ethically.
The pace of technological advancement introduces new risks related to escalating cybersecurity threats, activities of serious and organised crime and AI-enabled fraud. The protection of our systems and information is critical. We continue to balance opportunities and risks, working with our partners to safeguard our systems, maintain trust, and ensure operational resilience.
Misinformation and disinformation
Misinformation and disinformation continue to spread rapidly, undermining public trust in government, distorting information and creating false narratives. These risks have been further exacerbated by the growing sophistication of fraudulent activity, including scams that replicate government and trusted industry partners, and by advances in AI that challenge the accuracy of tax information and advice.
Trust in our administration is vital and underpins willing participation in the tax system. To maintain this trust, it is important that we continue to treat all taxpayers fairly and that we continue to ensure that non-compliance, particularly deliberate non-compliance, is appropriately dealt with.