The inspector-General of Taxation’s (IGT’s) report into aspects of the Pay As You Go (PAYG) Instalments system has been publicly released, which is the first IGT review undertaken in direct response to insights drawn from the IGT’s complaint handling service. It also had stakeholder support during consultation on the IGT 2017 work program and attracted submissions from individual taxpayers, tax practitioners and their representative bodies.
The key focus of the review was individual taxpayers’ awareness and understanding of the PAYG instalments systems.
Individual taxpayers were:
- Unclear as to why hey had been entered into the system;
- The system’s requirement and exemptions;
- The system’s interaction with the annual income tax system; and
- The support tools available to them.
As such, the IGT recommended several improvements to the ATO’s taxpayer communication and guidance materials as well as internal staff education and support.
Following the review, the ATO has agreed in full of six out of the seven broad recommendations and partly agreed with the other.