Our Dialogue with the ATO

In our continuous efforts to keep our members well-informed and supported, the Southern Gold Coast Chamber of Commerce recently engaged in a detailed and constructive dialogue with the Australian Taxation Office (ATO). Below, we share the questions we posed and the comprehensive responses provided by the ATO, highlighting their initiatives and the implications for our business community.

Commissioner Heferen's Address: Ensuring Fairness in Taxation

Question 1: Commissioner Heferen stated, "A fair tax system is an entirely reasonable expectation. Whether you’re a large corporate, a small business or an individual, we all have skin in this game." Could you elaborate on what measures the ATO is taking to ensure this fairness is upheld across all taxpayer categories?

Response: The ATO, through the Tax Avoidance Taskforce, continues to improve compliance among multinational enterprises and both public and private businesses. The task force is dedicated to closing tax loopholes and addressing key risks, ensuring the community that businesses are paying the right amount of tax in Australia. They enhance transparency through public reporting of large business tax information, such as the Corporate Tax Transparency Report and findings from the Top 100 and Top 1,000 tax performance programs. For privately owned and wealthy groups, similar reporting ensures compliance and transparency.

Small Business Debt Crackdown: Updates and Implications

Question 2: In April of this year, the ATO announced a crackdown on more than $50 billion of unpaid tax debt, with over two-thirds owed by small businesses. Can we get an update on this, and since the announcement was made, what impact has this initiative had on small businesses? Additionally, how can small businesses better prepare to meet their obligations for the next End of Financial Year?

Response: The ATO's initiative targets the shadow economy, where small businesses that avoid tax obligations make it harder for honest businesses to succeed. The strategies include increased visibility of enforcement activities, tailored solutions for small businesses, better use of data and technology to identify shadow economy behaviors, and education for future taxpayers. This comprehensive approach ensures that small businesses are better prepared to meet their tax obligations and operate fairly within the economy.

Taxation Fairness for Small Businesses: A Closer Look

Question 3: Given that over two-thirds of the unpaid tax debt is attributed to small businesses, does this suggest that the current taxation system is overly burdensome on small businesses?

Response: The ATO recognizes that most small businesses do the right thing, but those who do not comply operate in the shadow economy, reducing funds available for essential services. The ATO's efforts focus on ensuring that the tax system is fair and that all businesses, regardless of size, meet their obligations. By targeting the shadow economy and providing support and guidance, the ATO aims to level the playing field for all businesses.

ATO's Message for the 2024/25 Financial Year

Question 4: What message would the ATO like to convey to Southern Gold Coast businesses to help them stay ahead of their tax obligations in the 2024/25 Financial Year?

Response: The ATO encourages businesses to stay proactive in meeting their tax obligations. They offer extensive support and guidance through their website and other contemporary services. The key message is to leverage these resources and ensure compliance to avoid the pitfalls of the shadow economy.

The Chamber’s Commitment

Our Chamber remains dedicated to advocating for fairness and transparency in the tax system. By engaging directly with the ATO, we aim to provide our members with crucial information that can help them navigate their tax responsibilities effectively. We thank the ATO for their detailed responses and look forward to continuing this important dialogue.

For more detailed information on the ATO's responses and for further guidance, please contact us directly. Your feedback and queries are always welcome as we strive to support our vibrant business community.