The Government will provide additional funding to the Australian Taxation Office (ATO) to improve service levels and enhance the integrity of tax administration. This funding was recommended by an independent pricing review of the ATO.
Additional funding for the ATO for base tax administration will maintain the integrity of the tax system by protecting revenue already included in the forward estimates and result in additional taxation revenue through enhanced debt collection and compliance activity.
In addition, the independent pricing review identified large business compliance and small business (income tax and fringe benefits tax) field services as areas warranting further investment. Additional funding for large business compliance activities, including research, advice, education, revenue management and active compliance, will result in increased taxation revenue. Increased funding for small business field services will improve the advisory services provided to small businesses, enhance the ATO's capacity to identify emerging risks and assist in improving compliance behaviour.
The Government has also announced additional funding to the ATO for GST administration. Further details may be found in the Treasurer's press release of 22 March 2002.