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Australian Government Coat of Arms

Budget | 2015-16

Budget 2015-16
Australian Government Coat of Arms, Budget 2015-16
  1. budget.gov.au
  2. 2015‑16
  3. Overview
  4. Making the tax system fairer

Making the tax system fairer

The Government is taking steps to enhance public confidence in the integrity and fairness of the tax system at home

Improving fairness

Some employees of not-for-profit organisations have been able to salary package excessive amounts of benefits that are not available to other taxpayers. These ‘meal entertainment’ benefits include holidays, cruises, weddings, and meals and alcohol in restaurants.

The benefits are not capped and not reportable for fringe benefits tax, or for other government tax and transfer payment income tests. These benefits will now be subject to a new grossed-up exemption cap of $5,000, which improves fairness in the taxation system. These workers will still retain access to generous concessions.

Doing the right thing

The Government will provide $265.5 million to the Australian Taxation Office (ATO) over three years to extend the GST compliance programme.

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. This programme will allow the ATO to continue to identify fraudulent GST refunds, under reporting of GST liabilities, failure to lodge GST returns and outstanding GST debts.

Fighting financial crime

There are significant risks around investment and financial market fraud, superannuation and tax fraud and cyber and identity crimes in Australia. The problem is broader than any individual agency or jurisdiction.

The Government is creating a taskforce to fight serious financial crime. We need a coordinated national partnership of law enforcement and regulatory agencies that will develop inter‑agency intelligence and conduct operations to target nationally significant serious financial crime and tax evasion.

A coordinated approach to fighting financial crime
The graphic shows a map of Australia and the law enforcement and regulatory agencies that will coordinate information exchange to tackle financial crime. The agencies are: the Australian Federal Police, the Australian Transaction Reports and Analysis Centre, the Australian Taxation Office, the Australian Customs and Border Protection Service, the Australian Securities and Investments Commission, the Commonwealth Director of Public Prosecutions, the Attorney-General’s Department and the Australian Crime Commission.