THE Australian Taxation Office (ATO) has today affirmed its commitment to assisting small businesses resolve their taxation disputes. Following a successful multi-year pilot, the ATO’s small business independent review service will be offered permanently as a dispute resolution option for eligible small businesses.

The ATO’s service aims to ensure eligible small businesses have an additional opportunity to resolve a dispute with the ATO in a cost-effective and time-efficient way.

Since the pilot program started in 2018, more than 1,200 small businesses have been offered the service and more than 180 small businesses have taken up the ATO’s offer.

ATO Deputy Commissioner Jeremy Geale said the service was all about ensuring small businesses are given the opportunity to achieve an independent, fast, free, and fair resolution when they disagree with the ATO’s audit position.

“Independence is critical when handling a dispute, so we ensure each and every independent review is done by an officer from a different part of the ATO who was not involved in the original audit," Mr Geale said.

“Small businesses who participated in our pilot told us they found the process to be fair and independent, irrespective of the independent review outcome, so this is a great result, and is a big part of why we are locking this service in permanently.”

Mr Geale clarified that taxpayers could request in-house facilitation at any stage of a dispute with the ATO and that the independent review occurs prior to the ATO issuing an amended assessment and any resulting debt being raised.

Australia is the only jurisdiction that provides so many dispute resolution options to small business taxpayers, according to the ATO, allowing them to be heard at audit, independent review, objection, Court or Tribunal, with appeal rights and Tribunal funding.

The ATO’s decision to transition the pilot to business as usual is consistent with recent recommendations made by the Australian Small Business and Family Enterprise Ombudsman.

The ATO’s small business independent review service is available to eligible small businesses in addition to other dispute options, for example, lodging an objection, in-house facilitation, or by taking the matter up with the Inspector General of Taxation and Taxation Ombudsman or the Australian Small Business and Family Enterprise Ombudsman.

The service is available for eligible small businesses with an annual turnover of less than $10 million in relation to disputes about income tax, GST, excise, luxury car tax, wine equalisation tax, and fuel tax credits. Disputes about employer obligations like superannuation and fringe benefits tax are not eligible for the independent review service.

More information about the ATO’s independent review service including how to request a review and eligibility criteria is available on the ATO’s website.

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WITH Australia’s economy starting to recover from the impacts of COVID-19, this Monday (March 29) the House Economics Committee will gather key financial regulation bodies to discuss consumer protection, responsible lending, and other issues.

Witnesses from the Australian Prudential Regulation Authority and Australian Securities and Investments Commission will appear at the hearing.

Committee chair Tim Wilson said, "The COVID-19 pandemic has created unprecedented disruption and uncertainty in the financial sector.

"As Australia moves towards our 'post COVID normal', it is essential to maintain strong prudential regulation; promote competition; and ensure fair and transparent dealings to safeguard financial stability and consumer trust in the financial sector.

‘After the chair of ASIC stepped aside due to allegations of misuse of taxpayer funds during our last hearing, the committee is particularly interested in scrutinising ASIC’s response to the Treasury's review of ASIC governance, released in January this year," Mr Wilson said.

"The committee is also interested in hearing how APRA is promoting strong prudential regulation and operational resilience amongst financial institutions, including super funds."

Public hearing details

Date: Monday, 29 March 2021
Time: 9am to 1.30pm
Venue: Main Committee Room, Parliament House, Canberra, and via videoconference

The hearing will be broadcast live at aph.gov.au/live.

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INDEPENDENT funding for ICAC is needed now, according to the Public Service Association, so the corruption watchdog can focus on its investigations rather than trying find annual budget savings.

"Every year budgetary pressure sees ICAC forced to go cap in hand to the Premier for supplementary funding," PSA general secretary Stewart Little said.

"In 2021, the fearless investigator is being asked to find $3.4 million in savings for the next four years.

"Without this cash it is hamstrung in its ability to sniff out corruption or run multiple investigations. The Berejiklian government is whittling it down to its smallest size in three decades."

The latest budget pressure comes after ICAC was forced to find $4.7 million in savings in 2019/20, and $2.9 million in 2018/2019.

"Independent and consistent funding, which is allocated at arm's length from the government, is needed urgently. Keeping NSW corruption free shouldn't be treated as a line item in the budget, it is a core service we need," Mr Little said.

"ICAC is the ultimate check on government. Funding independence removes any threat of pressure from those ICAC is investigating."

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THE House of Representatives Standing Committee on the Environment and Energy today launched a new inquiry into dispatchable energy generation and storage capability in Australia. 

Committee chair, Ted O’Brien MP said, “Australia’s energy system is changing. We are seeing rapid growth in renewable energy and the retirement of thermal energy capabilities which creates a risk of unintended consequences.

“As older power stations leave the market, we can’t rely on intermittent renewables alone to keep the lights on and the costs down,” Mr O’Brien said.

“We need sufficient dispatchable generation capacity to balance renewables, so the electricity system is affordable, reliable and secure. Our new inquiry will tackle this generational challenge by assessing both sides of the equation - generation and storage.

“It’s not just about how the system works today but how it might work in the future, so we’ll assess the future need for dispatchability and the potential for different types of technology.

“We will learn from what’s happening elsewhere in the world to address this challenge while exploring opportunities for Australia to export dispatchable zero-emissions power to others.

“We’re at a turning point in how our electricity market operates and how we respond will be a major determinant of our strength as a nation well into the future. We have to get it right.”

Further information, including the inquiry’s full terms of reference, is available on its website.

The committee will accept submissions addressing the terms of reference until May 7, 2021.

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