Focus areas in 2024
The Australian Taxation Office (ATO) presented 3 focus areas in 2024 for consideration, based on community intelligence received by the Tax Integrity Centre, covering the following areas:
- reporting and data controls
- digital shadow economy behaviours
- manipulating employment relationships.
A structured roadmap and program schedule were introduced to give visibility of the proposed timelines and key deliverables.
Members agreed that drivers of shadow economy behaviours are imperative to explore further.
Potential benefits of bringing regulatory agencies into the discussion, such as Treasury, were noted.
|
Action item |
20240219-1 |
|---|---|
|
Due date |
March 2024 |
|
Responsibility |
Members |
|
Action item details |
Provide feedback on the proposed focus areas, including identifying the likely drivers of shadow economy behaviour and suggesting for subject matter experts relevant to the discussion. |
|
Action item |
20240219-2 |
|---|---|
|
Due date |
March 2024 |
|
Responsibility |
Secretariat |
|
Action item details |
Provide members with a detailed schedule for the proposed focus areas and dates for consideration. |
Member updates
Industry members shared observations which focussed on current environmental pressures, including:
- Ongoing skilling shortages, frequent regulatory changes and cash flow constraints continue to place pressure on many industries.
- Small business confidence is low and may decline further as influenced by the cash rate increase.
- Insolvencies and personal bankruptcies are likely to rise, as most businesses are just breaking even.
- A digital first solution may not be suitable to every business due to a lack of digital skills.
- Start-up companies require more assistance from the regulators and professionals to understand their obligations.
Agency updates
Treasury
A dedicated taskforce was established by Treasury to conduct the 5-year review on shadow economy as commissioned by the government.
It will focus on new and emerging shadow economy risks and trends, while considering the recommendations made by the 2017 Taskforce Final Report.
The 5-year review is expected to be completed by June 2025.
Shadow Economy Program
The ATO has undertaken more than 105,000 activities and raised more than $1.36 billion in liabilities.
The Illicit Tobacco Taskforce has been involved in 6 operations, which resulted in 70 seizures consisting of more than 6 tonnes of loose-leaf tobacco and over 10 million cigarettes with the total excise evaded being more than $21 million.
The Shadow Economy Taskforce made 77 disclosures to member agencies in line with the Memorandum of Understanding and Regulations.
Australian Border Force (ABF)
The ABF will refocus on stopping threats at border through managing approximately 62 million air cargo consignments entering each year.
The importation of disposable vapes is prohibited from 1 January 2024, while the importation of all non-therapeutic vapes will be prohibited from 1 March 2024.
ABF-led Operation CALOR commenced in December 2023, which was supported by the Therapeutic Goods Administration and other partner agencies, has executed 39 Commonwealth warrants across the Sydney metropolitan area.
Other business
The SEAF co-chair outlined the governance processes in the coming months, consisting of:
- updating the SEAF Charter for 2024-25
- conducting a member survey to solicit feedback
- reviewing the current membership composition.