What is the ATO?
Answer
Australian Taxation Office managing taxation
Explanation
The Australian Taxation Office (ATO) is the federal agency that administers the Australian taxation system, collects most federal taxes, and oversees the superannuation system. It is one of the largest Commonwealth departments, with about 21,000 staff and an annual budget of about 4.5 billion dollars, operating from offices in every state and territory.
The ATO collects income tax (the largest source of federal revenue), the Goods and Services Tax (GST), fringe benefits tax, capital gains tax, the Medicare levy and surcharge, the Higher Education Loan Programme (HECS-HELP) repayments, and superannuation guarantee charges from non-compliant employers. It also administers a range of business and tax incentive programmes such as the Research and Development Tax Incentive and the small business instant asset write-off.
Most Australians interact with the ATO through myGov, which links to ATO online services through a single sign-on. Through ATO online, individuals can lodge tax returns, view PAYG payment summaries, manage TFNs, view superannuation accounts, claim the low-income super tax offset, and check the status of refunds. The ATO mobile app provides a similar set of features and can scan receipts for record-keeping. Telephone support is available on 13 28 61 for individuals and 13 28 66 for businesses, with TIS interpreting service available for callers with limited English.
The ATO also operates a wide range of compliance programmes targeting tax avoidance, the cash economy, international tax evasion, and superannuation underpayment by employers. Major recent initiatives include Single Touch Payroll (employers report wages and PAYG to the ATO at each pay event), real-time reporting of share trades through the Investments Hub, and automated data-matching with banks, Centrelink, Medicare, the share registries, and international tax authorities under information-sharing treaties. The Tax Practitioners Board, an independent body, regulates the about 75,000 registered tax agents and BAS agents who lodge returns on behalf of clients.
Why this matters for your test
The ATO is the agency every Australian deals with for income tax, super, and many business matters, and knowing how to access it through myGov makes tax compliance much easier.
Source: Australian Citizenship: Our Common Bond (2024)
