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Reliability

How we make sure the tax gap estimate is reliable.

Published 24 October 2023

We seek feedback and advice about how we estimate the gap from our external and internal subject matter experts. Based on the advice, the reliability rating for this estimate is high with a score of 22.

The estimate draws on the results from the random enquiry program. It looks at all items on an income tax return and the taxpayer information we have received. Non-payment is also addressed. The gap has not materially moved between years, giving us confidence in the results we are seeing.

Figure 7: Reliability rating scale from very low to very high – individuals not in business income tax gap

"Figure 7: This image shows a graph that represents the reliability rating for the current individuals not in business income tax gap estimate. The rating scale includes: -          Very low which is a score between 0 and 10 -          Low which is a score between 11 and 15 -          Medium which is a score between 16 and 20 -          High which is a score between 21 and 25 -          Very high which is a score between 26 and 30. The graph shows the current individuals not in business income gap estimate has a rating of 22, which is high."

In April 2023 the Australian National Audit Office (ANAO) found the ATO 'is largely effective at identifying and reducing the tax gap for individuals not in business'. There were also recommendations made by the ANAO which the ATO has agreed to implement.

More detail can be found in Identifying and reducing the tax gap for individuals not in businessExternal Link.

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