The ATO has received additional Government funding to continue their focus on improving the voluntary compliance of wealthy Australians until 30 June 2017.
The ATO began focusing on wealthy Australians in 2009-10 with the ultimate goal of influencing all wealthy Australians to pay their fair share of tax. The ATO hoped to do this by changing attitudes and behaviours associated with tax manipulation, avoidance and schemes.
Wealthy Australians are defined as Australian residents who control net assets of between $5 million and $30 million.
The ATO’s strategy to influence wealthy Australians includes:
-gaining a greater and more detailed understanding of wealthy Australian’s
-treating systematic tax risk
-heightening ATO visibility in the community through education
The ATO has undertaken direct enforcement action, including comprehensive reviews and audits, as well as engaging with individuals through letter and phone campaigns.
The ATO has also recognised that many people who fall into the category of ‘wealthy Australian’ are asset rich but cash poor. This has led the ATO to work on managing disputed, collectable and insolvent debt.
As a result of their compliance activities, the ATO have exceeded liability targets.