Deputy Commissioner’s Update in Australia: ATO Changes for Top 1000 and GST Risk Focus Areas

On October 24, 2024, Deputy Commissioner and Senior Director presented at the TIA GST National Conference, discussing updates relevant to public and multinational businesses, such as the Top 1000 Program, GST input tax credits, GST risk focus areas and the supplementary annual GST return.

The Deputy Commissioner and Senior Director presented at the TIA GST National Conference, on October 24, 2024, discussing updates relevant to public and multinational businesses, including:

• Top 1000 Program Changes: The program will be recalibrated to reflect growth, with the turnover threshold for the largest 1,000 taxpayers increasing from AUD 250 million to approximately AUD 350 million for the 2025 financial year. Additionally, entities with turnovers exceeding AUD 1 billion will be classified as "significant taxpayers," subject to a different assurance approach by the ATO,
• GST Input Tax Credits: The ATO published draft guidance on division 93 of the GST Act regarding the four-year limit for claiming input tax credits. Taxpayers should send in their amendment requests as soon as possible instead of waiting until the deadline, as changes in long-standing positions may attract additional examination by the ATO,
• GST Risk Focus Areas: The ATO is concentrating on various GST risk areas, including financial services, product classification, property and construction, and international GST compliance,
• Supplementary Annual GST Return: It allows the ATO to gather information from businesses to better identify changes in their operations and GST positions. This return will help the ATO monitor compliance without needing to engage with every taxpayer individually. For businesses that consistently meet standards and submit the return, there is a reduced chance of undergoing intensive justified trust reviews. Some businesses in the Top 1000 program may even avoid these reviews altogether.

These updates emphasize the ATO's commitment to enhancing compliance and assurance for large businesses in Australia.