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Risk based reviews

How we undertake risk reviews for the Next 5,000 groups.

Published 26 November 2023

As part of the Next 5,000 program, we undertake reviews that apply a risk-based approach to groups. This is different from an assurance approach such as the streamline assurance reviews.

Comprehensive risk reviews

Since quarter 3 of the 2022–23 financial year, we commenced comprehensive risk reviews on:

  • groups that we have not engaged with recently
  • groups that did not have appropriate governance processes and procedures in place, identified in a streamline assurance review
  • the indication of one or more key priority areas
  • any new emerging issues affecting private groups.

As these reviews are currently in progress, we will provide our insights in future findings reports.

The program noted 10% of the streamline assurance reviews were escalated to a comprehensive risk review for complex issues. In some cases, we escalated reviews to a comprehensive risk review due to behavioural concerns.

For more information, see Next 5,000 private groups tax performance program.

Specific risk reviews

We undertake a small number of specific risk reviews that are considered a one or 2 potential tax risk. These tax risks generally relate to privately owned and wealth groups broader population priority issues.

We are also commencing next actions specific risk reviews. These reviews will monitor the specific recommendations made to Next 5,000 groups during a streamline assurance review and assess what steps the Next 5,000 group have taken since the finalisation of the streamline assurance review.