Community and industry insights roundtable
The use of artificial intelligence and the supplementary annual GST return have been scheduled in meeting agendas.
Further topics discussed included:
- processing documents and forms, particularly for grouping and GST registration
- online services for legal firms
- issues faced by non-resident entities relating to registration, grouping, refunds, systems
- director penalty notices and increased levels of debt and vulnerable clients
- fraud issues, particularly in construction, payroll and service provider sectors
- exploring Australian Taxation Office (ATO) data resources to improve compliance across the cash economy.
Supplementary annual GST return
The group discussed the implementation of the supplementary annual GST return. A broad communication strategy is raising awareness of the new lodgment obligations and providing clarity for taxpayers on what they need to do. The first notices requiring lodgment will issue in May with lodgment due in August.
Taxpayers involved in a pilot have provided feedback to the ATO. While the majority said the questions were clear and guidance was relevant and easy to follow, the ATO is considering making further refinements to questions relating to GST governance and the GST Analytical Tool (GAT).
The ATO will share a further update after analysing and evaluating the first year of lodgments.
Member comments
A member asked if taxpayers who do not need to do an assurance review, based on the responses provided in the supplementary annual GST return, will get an updated GST assurance rating. The ATO is considering this and what will be communicated to taxpayers.
The ATO acknowledged a request for further web guidance for taxpayers regarding GAT and confirmed that undertaking the GAT is expected as part of good governance. The ATO reiterated there is no threshold applied when analysing the GAT and that each circumstance is considered individually.
A member asked if there are likely to be any more risk-based interactions with taxpayers because of the supplementary annual GST return, such as a letter or phone call. The ATO noted information used for risk-based programs will depend on the information provided by taxpayers in the return.
Future GST PAG priorities
Following discussions on GST public advice and guidance (PAG) products at the July and November 2024 meetings, the ATO canvassed members' views and insights on what issues they consider the ATO should prioritise for future PAG to improve the GST system.
The ATO asked members to consult within their industry or professional groups on priorities. Members were asked to consider the ATO PAG prioritisation factors and were reminded that their insights would be fed back to relevant areas within the ATO as part of normal PAG prioritisation processes.
Members elaborated on the first 2 of the topics raised in their written comments: the need for specific public guidance on modern build-to-rent development arrangements, and modern social and affordable housing development arrangements. An out-of-session meeting will be arranged for members to further discuss PAG priorities.
Member comments
Investors, particularly foreign investors, in sectors such as build-to-rent, need a level of certainty within specific time horizons, before they commit to investment. Members noted it would be helpful for the ATO to provide more guidance on its website with extra examples.
Members asked for more guidance on the sector of social housing, particularly surrounding the provision of advice to community housing providers, to give them greater levels of comfort about what they are doing.
GST system background and context
The ATO guided members through the current GST product ecosystem, risks and challenges, and reflected on the outcomes of previous stewardship group workshops that focused on improving the system.
Members highlighted GST administration focus areas such as natural systems, digitalisation, contemporary business practices, supply chains, support, and education.
As the GST gap has increased, the group considered practices implemented by other jurisdictions to reduce their value-added tax gaps.
Predictions for the future of GST
The group discussed a range of ideas for improving the future administration of GST. Broader societal and technological trends and what that might mean for GST were also canvassed.
The GST payments process is expected to become more streamlined and flexible with the rollout of new payment platforms, providing an opportunity to change peoples' perspective on payments. The group will continue to be discuss this topic at future meetings.
Member comments
Members predicted an increasing prevalence of grey law, that is rules that aim to influence conduct but are not legally binding, and discussed what that might mean.
System-generated data that goes directly to the ATO from platforms such as Amazon, eBay and Airtasker provides the ATO with a broad range of data that might enable it to fully complete tax returns then seek confirmation from the taxpayer or provide them with an avenue to challenge it.
GST has shifted over the 25 years since its inception, from theoretically pure to incorporating more practical approaches such as reverse charging.
Members discussed a range of ideas for improving the future administration of GST in the areas of digitalisation, better use of natural systems, payments, support and education.
Legislation and ATO updates
Members had an opportunity to ask questions on updates, which included:
- legislation and consultation
- news and program updates
- GST discussions at other ATO stewardship groups
- GST public advice and guidance
- GST litigation.
Attendees
|
Organisation |
Member |
|---|---|
|
ATO |
Hector Thompson (Co-chair), International Support and Programs |
|
ATO |
Andrea Wood, International Support and Programs |
|
ATO |
Darryl McCarthy, International Support and Programs |
|
ATO |
Narda Phillips, Enterprise Solutions and Technology |
|
ATO |
Will Day, Small Business |
|
Australian Banking Association |
Chris Plakias |
|
Australian Bookkeeping Association |
Kerrie Jarius |
|
Chartered Accountants Australia and New Zealand |
Kevin O'Rourke |
|
Corporate Tax Association |
Stephanie Caredes |
|
CPA Australia |
Ken Fehily |
|
Digital Service Providers Australia New Zealand |
Matthew Prouse |
|
Independent Member |
Jennee Chan |
|
Law Council of Australia |
Rhys Guild |
|
RSM Australia |
Sam Mohammad |
|
Small Business Representative |
Amanda Gascoigne (Co-chair) |
|
The Tax Institute |
Bastian Gasser |
|
University of New South Wales |
Michael Walpole |
|
Wesfarmers Limited |
Caryn Bovell |
Guest attendees
|
Organisation |
Attendee |
|---|---|
|
ATO |
Cathy Joseph, International Support and Programs |
|
ATO |
Jenny Lin, Private Wealth |
|
ATO |
Michael Morton, Small Business |
|
ATO |
Nadia Alfonsi, Public Groups |
|
ATO |
Rowan Fox, International Support and Programs |
|
ATO |
Virginia Gogan, Public Groups |
|
Department of Treasury and Finance, Tasmania |
Damien Jarvis |
|
Queensland Treasury |
Matheus Yeo |
|
Treasury |
Chadd Gunton |
Apologies
|
Organisation |
Member |
|---|---|
|
ATO |
Sarah Vawser, Individuals and Intermediaries |
|
Property Council of Australia |
Elke Bremner |
|
Treasury |
Emma Baudinette |