2024-2025 Federal Budget - Corporate Affairs

Corporate Affairs

Strengthening Tax Compliance - Extending the Tax Avoidance Taskforce

The Government will extend the ATO Tax Avoidance Taskforce for two years from 1 July 2026. Extending the Taskforce ensures the ATO continues to be well-resourced to pursue key tax avoidance risks, with a focus on multinationals, large public and private businesses, and high-wealth individuals. This measure is estimated to increase receipts by $2.4 billion and increase payments by $1.2 billion over the 5 years from 2023-24.

Budget Paper No 2 p 17
Media Release

Strengthening Tax Compliance - Extending the Shadow Economy Compliance Program

The Government will extend the ATO Shadow Economy Compliance Program for two years from 1 July 2026. This extension of the Shadow Economy Compliance Program will enable the ATO to continue to reduce shadow economy activity, thereby protecting revenue and preventing non-compliant businesses from undercutting competition. This measure is estimated to increase receipts by $1.9 billion and increase payments by $610.2 million over the 5 years from 2023-24. This includes an increase in GST payments to the states and territories of $429.6 million.

Budget Paper No 2 p 16

International Assistance

The Government has provided a loan of $600 million to the Government of Papua New Guinea (PNG) to address the PNG Government's estimated 2023 budget shortfall. The loan was provided in response to a request from the PNG Prime Minister and will also assist PNG in delivering economic reforms under the International Monetary Fund Extended Credit Facility and Extended Fund Facility Program.

Budget Paper No 2 p 181

Digital ID

The Government will provide $288.1 million over four years from 2024-25 to support the initial delivery of the Digital ID system and support more Australians to realise Digital ID's economic and privacy benefits. Funding includes:

• $155.6 million over two years from 2024-25 to the Australian Taxation Office (ATO) to continue operating and improving the Government's Digital ID, myGovID, and the system which supports authorised access to a range of government business services
• $46.0 million over two years from 2024-25 to Services Australia to continue operating and improving the identity exchange which enables transactions across the Australian Government Digital ID System and performs the function of Digital ID System Administrator
• $35.2 million over two years from 2024-25 to the Department of Finance to continue policy leadership and governance of the Digital ID program
• $23.4 million over two years from 2024-25 for the ATO, Department of Finance and Services Australia to pilot the use of government digital wallets and verifiable credentials.

Budget Paper No. 2 p 97
Budget Paper No. 4 p 11
Media Release

Cyber Security of Regulators and Improving Registers

The Government will provide $206.4 million over four years from 2024-25 (and $7.2 million per year ongoing) to improve the data capability and cyber security of the Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC) and to continue the stabilisation of business registers and modernisation of legacy systems. The cost of this measure will be partially met from cost recovery through ASIC and APRA industry levies.

Budget Paper No 2 p 179

ABS - Delivering Census and modernising operations

The Government will provide $267.4 million over six years from 2023-24 (and $3.8 million per year ongoing from 2029-30) to the Australian Bureau of Statistics (ABS) to support the delivery of the 2026 Census, modernisation of ABS operations, and to further invest in data capabilities. This measure builds on the 2023-24 Budget measure titled Big Data, Timely Insights Phase 2 - securing Australia's critical economic data and supporting better informed macroeconomic policy.

Budget Paper No 2 p 177

Strengthening Tax Compliance - Australian Taxation Office Counter Fraud Strategy

The Government will provide $187.0 million over four years from 1 July 2024 to the ATO to strengthen its ability to detect, prevent and mitigate fraud against the tax and superannuation systems.

• $78.7 million for upgrades to information and communications technologies to enable the ATO to identify and block suspicious activity in real-time
• $83.5 million for a new compliance taskforce to recover lost revenue and intervene when attempts to obtain fraudulent refunds are made
• $24.8 million to improve the ATO's management and governance of its counter-fraud activities, including improving how the ATO assists individuals harmed by fraud.

This measure is estimated to increase receipts by $302.2 million and increase payments by $187.4 million over the 5 years from 2023-24.

Budget Paper No 2 p 15

Amendments to existing measures

• Make minor amendments to Treasury portfolio legislation that clarify the law to ensure it operates in accordance with the policy intent and make minor policy changes to improve administrative outcomes.
• Amend the start date of the 2023-24 Budget measure Tax Integrity - expanding the general anti-avoidance rule in the income tax law from income years commencing on or after 1 July 2024 to income years commencing on or after the day the amending legislation receives Royal Assent.
• Make minor amendments to the start date of certain components of the 2022-23 March Budget measure Streamlining excise administration for fuel and alcohol package.
• Extend refunds of indirect tax (including GST, fuel and alcohol taxes) under the Indirect Tax Concession Scheme (ITCS).
• No longer proceed with the 2019-20 Budget measure announced by the former Government Black Economy - Strengthening the Australian Business Number system.
• Further to the measure Rugby World Cup 2027 (men's) and Rugby World Cup 2029 (women's) announced in the 2022-23 March Budget, the Government will provide income tax exemptions to World Rugby and/or related entities for income derived in relation to the Rugby World Cup 2027 (men's) and Rugby World Cup 2029 (women's) events.
• Make changes to the agricultural levy and charge on sweet potatoes at the request of Australian Sweetpotato Growers Inc.
• Amend the 2022-23 October Budget measure Multinational Tax Integrity Package - amending Australia's interest limitation (thin capitalisation) rules to exempt Australian plantation forestry entities from the new earnings-based rules.
• Discontinue the measure Denying deductions for payments relating to intangibles held in low- or no-tax jurisdictions.
• Amend the tax law to give the Commissioner of Taxation (Commissioner) a discretion to not use a taxpayer's refund to offset old tax debts, where the Commissioner had put that old tax debt on hold prior to 1 January 2017.

These changes will decrease receipts by $158.7 million and increase payments by $122.3 million over the 5 years from 2023-24.

Budget Paper No 2 p 10

Treasury Portfolio - Additional resourcing

The Government will provide $136.9 million over five years from 2023-24 (and $20.2 million per year ongoing) to support the delivery of Government priorities in the Treasury portfolio. Funding includes:

• $79.7 million over four years from 2024-25 (and $9.9 million per year ongoing) to provide additional capability to the Treasury to meet Government priorities, including in consultation with the Department of Infrastructure, Transport, Regional Development, Communications and the Arts, and to the Inspector-General of Taxation and Taxation Ombudsman to support the performance of its functions
• $41.7 million over four years from 2024-25 (and $9.6 million per year ongoing) to the Treasury, the Australian Securities and Investments Commission (ASIC) and the Attorney-General's Department to regulate and support new beneficial ownership transparency requirements for Australian companies and other entities
• $8.9 million over four years from 2023-24 to improve monitoring of supermarket pricing practices, through an Australian Competition and Consumer Commission inquiry into supermarket practices and tracking and the publication of supermarket prices by CHOICE
• $2.9 million in 2024-25 to review the Australian Small Business and Family Enterprise Ombudsman, the Food and Grocery Code of Conduct, and the Tax and Corporate Whistleblower Protection Framework, as required by legislation
• $2.7 million over four years from 2024-25 (and $0.7 million per year ongoing) to support the SuperStream Gateway Network Governance Body, an industry-owned not-for-profit organisation, to manage the integrity of the Superannuation Transaction Network, which allows Gateway Members to transmit contribution data between employers and superannuation funds, with funding provided through the Australian Taxation Office
• $1.0 million over two years from 2024-25 for ASIC to maintain the North Queensland home insurance comparison website.

Budget Speech p 6
Budget Paper No 2 p 183
Budget Overview p 18

Fighting Scams

The Government will provide $67.5 million over four years from 2024-25 (and $8.6 million per year ongoing) to continue to combat scams and online fraud through the introduction of mandatory industry codes to be established under a Scams Code Framework and increased use of the secure eInvoicing network. Partial funding for this measure will be held in the Contingency Reserve pending development of the preferred legislative approach for the Scams Code Framework.

Budget Paper No 2 p 180