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 ago

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

2 months ago

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

4 months ago

Entireti has unveiled the new name for the AMP financial advice businesses that it acquired last year....

4 weeks 1 day ago

A Sydney financial adviser has been permanently banned from providing any financial services, with the regulator deriding his “lack of integrity, trustworthiness and prof...

3 weeks ago

Minister for Financial Services, Stephen Jones, has provided further information about the second tranche of the Delivering Better Financial Outcomes (DBFO) reforms....

1 week 6 days ago

TOP PERFORMING FUNDS