The government has proposed a 55% increase in audit funding over the next four years. A target of $3.7 billion is anticipated for the gross revenue that will be raised as a result. So what does this mean for you? We suspect an increase in audit activity in relation to individual, business and SMSF lodged returns.
Our recommendations to combat the increase in audit activity
1. Be in the know
Gain a better understanding of your financial position and tax particulars by talking with your accountant. Your accountant can also conduct a risk assessment, and in doing so you could both discover a better way to structure your affairs.
2. Seek expert advice
In the event that you are contacted by the ATO or other government revenue agencies, the best action for you to take is to advise them that you would firstly like to talk to your accountant. As your accountant, we have the experience in dealing with these matters and will be more likely to reduce the time and cost required to attend to the audit activity in question.
3. Consider Audit Shield
We proudly offer our Audit Shield service as a mechanism to protect you against unplanned professional fees that can arise as a result of audit activity. With the government’s focus on increasing gross revenue, taxpayers will be scrutinised – increasing your chances of an audit, enquiry, investigation or review. Even if no adjustments are required to your lodged returns, significant costs can still be incurred in order to satisfy the requests of the ATO or other government revenue agencies responsible for the instigation.
If you would like to hear our experiences with the increase in audit activity, or if you would like to learn more about how you can protect yourself with our Audit Shield service, please contact one of the team on 07 3391 1188.