ATO at it Again!

The main cause of inflation to any country is its government's mis-management of the public purse. Government officials of this new generation of politics, as well as some of the old guard, are the worst financial planners you will ever know of. 

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When COVID-19 hit, instead of conserving federal funds, we gave the money away to all of the bums who refused to work. No longer would a person on New Start allowance have to look for work during the pandemic, but no "We will also DOUBLE your current New Start Allowance". 

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During this time period we also saw the largest drop in casual workforce employees within the last 50 years. Government mismanaging of our money also made life so easy for the casual worker to essentially not work and receive more money for not working than they would if they continued their regular shifts. This was most prominent in positions such as cafe staff and dental assisting. 

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This then led to overspending, and when the government overspends they need to find a way to recoup that cash, and now the time has come to recoup. Who are they targeting? The SME's. Why not? It's easy money. 

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Beyond the corporate report, small business taxpayers are already keenly aware of how the ATO is approaching its debt collection duties.

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Director penalty notices, which threaten to make company directors liable for a business’ tax debts, are on the rise, and the ATO is disclosing major outstanding debts to credit reporting agencies.

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The new corporate plan suggests the return to standard compliance activities in the final stages of Jordan’s tenure is unlikely to stop any time soon.

“We will take decisive and swift action with those clients who make the choice not to engage and who purposefully avoid payment obligations,” the new plan said.

“Through our enhanced data and improved analytics capability, we will better identify the drivers for non-payment and refine our strategies to drive on-time payment.”

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New digital blueprint for SMEs on the way

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What is new is the ATO’s upcoming approach to helping small businesses comply with their obligations before those debts even arrive.

“Blueprinting a future small business digitalised tax experience” is also on the ATO’s six-point priority list.

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“We will continue to consult with key partners and publish a multi-year approach designed to make it easier for small businesses to meet their tax obligations from the start and on time,” it said.

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“Our co-designed initiatives and digitalised, integrated options implemented at broader scale will support small businesses accurately report, and pay at the right time.”

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It is vital the ATO’s digital services “make it easy for taxpayers to engage with us and that we enable streamlined services so they ‘just happen’,” the report added.

That pledge echoes one of the last statements made by Jordan in his tenure as commissioner, when he asked taxpayers to imagine a “BAS-free future”.

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The precise shape and timing of the ATO’s blueprint is yet to be seen, but the ATO plan suggests it sees instantaneous and digital tax reporting as a bulwark against poor tax performance.

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Balancing integrity and artificial intelligence

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The corporate plan also appears to address the recent on-hold debt fracas, by reiterating the ATO’s need to meet community expectations.

It will work with “integrity, fairness and compassion,” the plan said.

“We aim to deliver on our responsibilities in a way that meets community expectations and is in accordance with the law.”

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Crucially for the ATO, incoming legislation will remove its requirement to recoup particularly old and minor debts, allowing it to focus on more significant payments.

Elsewhere, the plan recommits the ATO to the responsible use of artificial intelligence in its activities.

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“We are committed to ensuring responsible process automation and AI development,” said the ATO, which already deploys some AI activities to identify suspected superannuation guarantee underpayments.

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“We seek to lead the way in setting ethical standards, governance arrangements and clear accountability for responsible data collection, management, sharing and use.”

All told, the plan attempts to strike the balance between guidance and support, versus the need to recoup billions in outstanding payments attributed to the nation’s small business taxpayers.

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“We need to do what we say we will do and not do what we say we won’t,” Heferen said in the plan’s foreword.

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“To maintain high levels of integrity within the system, we will provide tailored education and advice, and target those who promote or facilitate deliberate and persistent non-compliance.