There doesn't appear to be a 'centrepiece' to this budget – as in previous years. If there is a theme then it's that the ATO is to be resourced to increase its audit investigations. This is across a large number of areas where revenue 'leakage' has already been identified – particularly the black economy, employee obligations and phoenixing activities.
Specifically the reform of the R&D tax incentive continues to send mixed messages (on the one hand encouraging participation in the program whilst on the other complaining about it being exploited). We welcome the increased vigilance – as opposed to making wholesale changes to what is essentially an efficient system.
In a paper recently delivered (23 April 2018) by Holding Redlich (tax) litigation partner Damien Bourke these changes to the R&D tax regime were flagged.
The $318m to target the 'cash' economy is boosted by a further $133m to increase tax debt collections and an additional $130m for increased compliance and audits.
Holding Redlich has strengthened its capability to respond and advise clients on revenue disputes (ATO Risk Reviews and Audits) as well as any tax litigation which ensues, with the appointment - last November - of former EY Tax Controversy partner Damien Bourke.
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