Compliance
Compliance Spotlight: ATO’s Expanded Tax Avoidance Taskforce & Shadow Economy Measures
Australia is sharpening its focus on tax compliance, especially for multinationals, shadow economy participants, and individuals with outstanding obligations. Here’s what’s changing and how to stay ahead.
By NomadicTax Research Team • 5-8 min read • November 23, 2025
## What’s New in Compliance in 2025
Australia has rolled out several compliance-oriented policies in its 2025-26 Budget:
- **Tax Avoidance Taskforce** increased funding and extended focus toward multinationals and large businesses. ([dlapiper.com](https://www.dlapiper.com/en-us/insights/publications/2025/03/australian-federal-budget-2025?utm_source=openai))
- **Shadow Economy Compliance Program** extended and expanded to tackle under-reported income, worker exploitation, illicit trade. ([dlapiper.com](https://www.dlapiper.com/en-us/insights/publications/2025/03/australian-federal-budget-2025?utm_source=openai))
- **Personal Income Tax Compliance Program** enhancement to ensure individuals accurately report what they owe. ([dlapiper.com](https://www.dlapiper.com/en-us/insights/publications/2025/03/australian-federal-budget-2025?utm_source=openai))
## Immediate Implications for Taxpayers
| Group | What You Should Do | Risk if You Don’t |
|-------|---------------------|---------------------|
| **Multinational Businesses** | Understand Global-Domestic Minimum Tax obligations; maintain detailed transfer pricing, reporting. | Top-up tax adjustments; audits and penalties. |
| **Medium-Large Entities** | Review payments subject to withholding; ensure royalty/interest/dividend rules are respected. | Exposure under proposed stricter regimes. ([dlapiper.com](https://www.dlapiper.com/en-AU/insights/publications/2025/03/australian-federal-budget-2025?utm_source=openai)) |
| **Small Businesses & Individuals** | Keep good records; lodge on time; don’t under-declare; respond quickly to ATO notices. | Interest, penalties, audit risk. |
## Case Study: Foreign Resident CGT Measures Deferred
The budget proposed changes to how Capital Gains Tax applies to foreign residents disposing of assets with close economic connection to Australian land—also requiring notifications for disposals over AUD 20 million. However, the start date has been deferred from 1 July 2025 to the first relevant day (1 January, April, July or October) after the Act receives Royal Assent. ([dlapiper.com](https://www.dlapiper.com/en-us/insights/publications/2025/03/australian-federal-budget-2025?utm_source=openai))
## Tips to Improve Compliance Posture
- Automate systems: Use payroll, accounting, GST software integrations to minimise errors.
- Conduct regular internal audits to find and fix reporting issues before ATO finds them.
- Understand lodgment obligations: Global minimum tax forms (IIR, UTPR, DMT) may need filing if you’re a multinational or have cross-border operations. ([softwaredevelopers.ato.gov.au](https://softwaredevelopers.ato.gov.au/Pillar2_20250305?utm_source=openai))
- Seek professional reviews of entity transactions: Interest, dividends, royalties may come under new scrutiny.
**Summary**: Compliance is non-optional—Australia’s 2025 focus means stricter enforcement. Being prepared will save money, time, and headaches.