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ATO – Tax gap estimates reported in the 2019–20 ATO annual report

The tax gap is an estimate of the difference between the amount the ATO collects and what we would have collected if every taxpayer was fully compliant with tax law. No tax system can eliminate tax gaps. Our goal is to sustainably reduce tax gaps over time.

In 2017–18 the tax gap for the tax and superannuation system was estimated at approximately $31 billion or 6.9%.

This year sees the full release of our tax gap research program for the first time, with the release of five new gap estimates: medium business, fringe benefits, luxury car tax, alcohol, and product stewardship for oil. The previously-released gaps have been refreshed with new figures and insights. Attached a summary of the tax gaps estimates which outlines some high level information. The gaps have been published in line with the Australian Taxation Office 2019-20 Annual report, which is now available for you to view or download at ato.gov.au.