Australia’s high wealth tax gap stands at 7.7%

ATO/australian-taxation-office/taxes/

13 March 2020
| By Mike |
image
image
expand image

Australia’s high wealth companies and individuals are mostly doing the right thing, according to the latest data released by the Australian Taxation Office (ATO). 

The Commissioner for Taxation, Chris Jordan revealed the ATO’s first-ever tax gap for the high wealth market working on 2016-17 data which showed that the cohort met more than 90% of its obligations voluntarily. 

“Our intervention further increases the collection rate to over 92%, resulting in a revenue collection of nearly $9.3 billion. This means the gap is $772 million, or 7.7%,” he said. 

Jordan said that the gap sat midway between the ATO’s estimates for large and small business markets and slightly behind individuals. 

“In Australia the high wealth market represents 5,000 high wealth groups, comprising 9,000 individuals and 18,000 private companies,” Jordan said. “So it’s pleasing to see this market performing reasonably well compared to our other client segments.” 

“However, with a net tax gap of 7.7%, there is clearly still work for us to do. And that’s the benefit of the tax gaps – they show us where to focus our attention to achieve the best outcomes.” 

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

2 months 3 weeks ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months 3 weeks ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months 4 weeks ago

ASIC has suspended the Australian Financial Services Licence of a Melbourne-based financial advice firm....

1 week 5 days ago

The corporate regulator has issued infringement notices to three AFSLs whose financial advisers provided personal advice to a retail client while unregistered....

2 weeks 3 days ago

ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test....

3 weeks 1 day ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND