ATO Bolstered By Increased Funding In Tuesday's Australian Budget

by Mary Swire, Tax-News.com, Hong Kong

16 May 2002

Australian Treasurer Peter Costello announced an increase in funding of around $415 million per year for the Australian Taxation Office (ATO) on Tuesday, a move which will doubtless strike fear into the hearts of both corporate and individual citizens.

Mr Costello revealed that the boost in funding contained in Tuesday's budget was intended to enhance the agency's collection and compliance activities, particularly in areas such as fringe benefits tax for the country's small and medium enterprises (SMEs). This forms part of the federal government's agenda to improve 'the integrity of tax administration'.

However, taxpayers will doubtless be relieved to know that, as a counterbalance to the extension of the ATO's budget, $2 million per year will be allocated to fund an Office of the Inspector-General of Taxation. According to reports, this body will act as independent advisor to the government on tax matters, and will also act as an advocate for taxpayers.

Other than the massive increase in funding to the already expanded Australian Taxation Office, there were few surprises in this year's Australian budget, which broadly delivered on last year's election promises, and while not imposing any major new taxes offered very little in the way of pleasant surprises either.

Delivering their verdicts on Wednesday many commentators slammed this budget, formulated just seven months after the Howard Government won their third election, as a 'wasted opportunity'.

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