Tax Office Tightens Compliance Monitoring

Posted on Nov 21, 2012 | 0 comments


The tax office has recently signalled its intention to tighten compliance monitoring in a number of areas.

1. Risk Profiling:

The ATO will target taxpayers regardless of industry by looking over their whole database rather than targeting particular industries. “We check over 600 million transactions a year. This means that we can detect those who do not report all their income from things like dividends and interest, capital gains, and foreign income”, said Michael D’Ascenzo.

Compliance monitoring will be undertaken by the following actions (amongst others):

  • Conducting reviews into industries with a focus on unrecorded and unreported cash transactions.
  • Undertaking 1500 reviews to ensure businesses have systems that adequately support the correct reporting of GST.
  • Undertaking 1,000 reviews and audits associated with the sale, transfer and acquisition of property.
  • Ensuring businesses are correctly registered by undertaking 35,000 GST registration application reviews and 500 enterprise reviews.

 2. Superannuation risk monitoring:

Compliance with the Superannuation Guarantee requirements will be checked by:

  • Contacting around 13,000 employers regarding complaints about unpaid superannuation.
  • Conducting approximately 400 audits on employers who are seen to be at high-risk of not paying employee superannuation contributions, with a particular focus on cafes and restaurants, real estate businesses and carpentry businesses.
  • Checking of superannuation guarantee compliance through 3,000 employer reviews.

 3. Construction Industry:

Businesses in the building and construction industry are required to report the total payments they make to each contractor for building and construction services. Employers in this industry need to adjust how their payments to contractors are recorded. The following should be recorded:

  • ABN, name, address,
  • Total gross amount they paid for the financial year (total paid, including GST),
  •  Total GST included in the gross amount paid.


The information collected will be used to detect those contractors who may not have lodged their tax returns or who may not have included all of their income when lodging their tax returns. The first taxable payments annual report is due 21 July 2013 for payments made in the 2012-13 financial year.


If you have any concerns in regard to your compliance arrangements please contact us to discuss your options.

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