On 14 May 2024 as part of the 2024–25 BudgetOpens in a new window, the government announced it will extend the period the ATO has to notify a taxpayer when a business activity statement (BAS) refund is retained for further investigation from 14 to 30 days.
The changes will apply from the first financial year after royal assent.
The measure gives the ATO additional time to review suspected fraudulent refunds prior to their release, especially during periods of high-volume fraud events. It allows an additional 16 days to notify a taxpayer that a business activity statement (BAS) refund has been retained for further verification. Legitimate refunds will be largely unaffected. Any legitimate refunds retained for over 14 days will result in the ATO paying interest to the taxpayer.
For more information see Treasury Laws Amendment (Tax Incentives and Integrity) Bill 2024.