I would like to take this opportunity to acknowledge the role played by accountants in supporting our tax and superannuation systems. You are a valuable resource to the community and it is with your assistance that Australia boasts a tax system with high levels of compliance.
With the memorandum of understanding signed with the Tax Practitioner Board, the relationship between the ATO and the Board remains a strong one. As well as the consumer protection focus of the Board, we will be seeking to work together to support a well-regulated tax profession of high integrity.
Compliance focus
The ATO’s 2011/12 Compliance Program released earlier this year aimed at supporting and protecting the community. It outlined what we consider to be current risks and the actions we are taking to address these concerns. Focus areas in our compliance plan included businesses participating in the cash economy, incorrect superannuation guarantee contributions and some high wealth individual groups.
With the belief that prevention is better than cure, it is important to prioritise our operations using risk-based choices, and to collaborate with the community to make it easier to comply. As always we welcome your feedback on our compliance plan.
Highlights of 2011
- Tax time 2011 went well, with the bulk of returns processed within service standards and a more responsive telephone service.
- We helped over 81,000 small businesses with their tax and superannuation issues.
- Benchmarking activities have started to make an impact on the cash economy.
- Project Wickenby has reached a new milestone in its fight against tax crime, with one billion dollars in tax liabilities raised since 2006.
- While we helped many businesses facing short-term financial difficulties, we also slowed growth in tax and superannuation debts.
- This year marked the 20th birthday of superannuation guarantee. This was a significant anniversary for the nation, as it represents wise and careful planning for the years ahead.
Future planning
No sooner had we completed our change program than we started work on ATO Online 2015, our forward-looking IT plan. The focus of the program covers the delivery of systems to complement the Stronger Super measures, including the development of a portal for individuals, as well as an emphasis on online dealings to help streamline processes for taxpayers and their agents.
While on the topic of business efficiency, there has been a disappointingly slow take-up of the benefits of Standard Business Reporting (SBR). The capability now exists for businesses to lodge electronically many forms and reports required of them by all tiers of government, with reports of themselves being a by-product of the software packages used by businesses for their own accounting purposes.
I encourage businesses to ask their software provider whether their packages are SBR-enabled and, if they are, the benefits of using SBR to facilitate their reporting requirements. If they are not SBR-enabled, the providers should be sent the message that small businesses are on the lookout for ways to reduce their compliance costs and which make them and Australia more efficient.
While on SBR, if you have used it and would like to provide feedback on your experience, please send me a note about it. I think it is in the national interest to garner all the potential benefits that SBR could provide.
Next year promises to bring its own challenges, including a heavy legislative agenda and potential changes arising from this year’s tax forum.
