Powered by MOMENTUM MEDIA
subscribe to our newsletter sign up

Wealthy Aussies earmarked as ‘aggressive’ tax strategies targeted

Target piggy bank wealth aussie

The ATO has collected $5.6 billion in extra tax after targeting the country’s top earners, prompting a renewed focus on the individuals leading the country’s most lucrative companies.

A $679.9 million funding boost for the ATO’s Tax Avoidance Taskforce allowed for an expansion in compliance approaches, and wealthy Australians should brace for more activity.

“This funding allows us to intensify our focus on the top 1,000 multinational and public companies as well as the top 320 private groups and the high wealth individuals who control them,” said deputy commissioner at the ATO Mark Konza.

The ATO’s current focus includes trusts and aggressive tax planning. This has involved a review or audit of approximately 700 taxpayers.

Broadly, these moves are part of the government’s intentions to ensure large corporations and multinationals are paying tax, under new and tougher anti-avoidance laws.

Advertisement
Advertisement

“As a result of the Multinational Anti-Avoidance Law (MAAL), more than $7 billion in sales annually is expected to be returned to the Australian tax base. We have also seen more than half a billion dollars in extra GST paid in 2017-18 as a result of some global entities restructuring in response to the MAAL. We expect this will continue to grow,” Mr Konza said.

Tax time

For taxpayers who don’t fall into this bracket, the ATO is also targeting smaller deductions, which compound over time.

Expenses as minor as suspect laundry claims will be in the Tax Office’s sights this financial year. You can read a comprehensive wrap of what will be on the ATO’s hit list here.

 

Wealthy Aussies earmarked as ‘aggressive’ tax strategies targeted
Target piggy bank wealth aussie
nestegg logo
subscribe to our newsletter sign up
FROM THE WEB
Recommended by Spike Native Network
Neil - I retired about a year ago and now I've got less income than I planned for. Can I sue my financial planner?....
Joe - Agree with Terry Dwyer. The really nasty part is the way it will hit self funded retirees (through their SMSF in many cases) who have direct shares.......
John - Not sure loss of 30% of income is something I just let go. Options I will be doing is investing overseas, local and international REITs and seeing if.......
Dr Terry Dwyer, Dwye... - I am amazed by these comments. The effects will be subtle but pervasive. It will have a huge effect on superannuitants in pension mode as with low.......