Budget 2015: $265 million to the ATO to crack down on GST fraud

The federal government will give the Australian Tax Office an additional $265.5 million over three years to continue its work to stamp out fraud related to the goods and services tax.

In the budget papers, the government said the money will be spent to help the ATO identify fraudulent GST refunds, under reporting of GST liabilities, failure to lodge GST returns and outstanding GST debts.

The government said the compliance program will generate an additional $2.5 billion in revenue, although expenses associated with the program will increase to $2.1 billion meaning the net benefit to the budget bottom line will be $445 million over four years.

Of the $2.5 billion in revenue, $1.8 billion will go to the states and territories as GST revenue.

“While the government recognises that most taxpayers do the right thing, the ATO will continue a series of compliance actions to make sure honest businesses have a level playing field,” the government said.

The government will also provide an additional $14.6 million over five years to the Inspector-General of Taxation to support the handling of tax complaints.