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Review into the ATO’s employer obligations compliance activities

December 2016

Table of Contents


Telephone: (02) 8239 2111
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Australian Government - Inspector-General of Taxation crest

Level 19, 50 Bridge Street
Sydney NSW 2000
GPO Box 551
Sydney NSW 2001

2 December 2016

The Hon Kelly O’Dwyer MP
Minister for Revenue and Financial Services
Parliament House
Canberra ACT 2600

Dear Minister

Review into the Australian Taxation Office’s employer obligations compliance activities

I am pleased to present you with my report of the above review examining aspects of the Australian Taxation Office’s (ATO) employer obligations compliance activities.

I have made two recommendations for the Government’s consideration. They are aimed at reducing compliance costs and promoting voluntary compliance through a review of the Fringe Benefits Tax regime and expanding the Taxable Payments Reporting System to the engagement of contractors across all industries with the required reporting ultimately becoming automated.

Nine other recommendations have been made to the ATO. They also address the compliance burden and deal with a number of other important issues such as the classification of workers as contractors or employees, the ATO’s capability framework and risk identification processes as well as the implementation of the Single Touch Payroll initiative.

The ATO has agreed in full or in part with seven of the nine recommendations. I am of the view that whilst the implementation of the agreed recommendations will result in significant improvement, the full benefit of the review may not be realised due to disagreement with some recommendations or parts thereof.

I am grateful for the support, contribution and willingness of those who provided their time, expertise and experience in the conduct of this review.

Yours faithfully

SIGNED

Ali Noroozi
Inspector-General of Taxation


© Commonwealth of Australia 2016

ISBN 978-1-925504-17-0

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