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Key takeaways
- Additional funding for the ATO to strengthen tax integrity.
- Funding to enforce restrictions on foreign ownership of housing.
Funding for the ATO
The Budget contains additional funding for the ATO to strengthen the fairness and sustainability of Australia’s tax system. $999m will be provided to the ATO over four years to extend and expand the following tax compliance activities:
- Tax Avoidance Taskforce - $717.8m provided over four years from 1 July 2025 for a two-year expansion and a one-year extension of the taskforce to support the ATO’s continued tax compliance scrutiny on multinationals and other large taxpayers.
- Shadow Economy Compliance Program - $155.5m provided over four years from 1 July 2025 to extend and expand the program to reduce shadow economy behaviour such as worker exploitation, under-reporting of taxable income, illicit tobacco and other shadow economy activity that enables non-compliant businesses to undercut competition.
- Personal Income Tax Compliance Program - $75.7m provided over four years from 1 July 2025 to extend and expand the program to enable the ATO to continue to deliver a combination of proactive, preventative and corrective activities in key areas of non-compliance.
- Tax Integrity Program - $50m provided over three years from 1 July 2026 to extend the program to enable the ATO to continue its engagement program to ensure timely payment of tax and superannuation liabilities by medium and large businesses and wealthy groups.
The measure is estimated to increase receipts by $3.2bn over five years from 2024-25, and increase payments by $1.4bn.
Funding to enforce foreign ownership restrictions on housing
As part of the Government’s broader agenda to boost housing supply in Australia, restrictions will be put in place to ban foreign persons from purchasing established dwellings, unless an exception applies. Exceptions include investments that significantly increase housing supply or support the availability of housing on a commercial scale, and purchases by foreign-owned companies to provide housing for workers in certain circumstances.
To assist with the enforcement of the restrictions, the ATO will receive:
- $5.7m over four years from 2025-26 to enforce the ban, and
- $8.9m over four years from 2025-26 and $1.9m per year from 2029-30 to implement an audit program and enhance their compliance approach to target land banking by foreign investors.
Illicit Tobacco Taskforce
The Government will provide $156.7m over two years to a number of agencies to strengthen compliance and enforcement action in relation to the trade of illicit tobacco and nicotine products.
Andrew Korlos
Nick Rogaris
Partner, Corporate Tax, Real Estate and Infrastructure, Sydney, PwC Australia
+61 2 8266 1155
Sarah Saville
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