Tax Planning
How Australia’s Extended Tax Avoidance Taskforce Will Affect High-Wealth Individuals & Multinationals
New funding and extended scope for the Tax Avoidance Taskforce will shift the compliance landscape—understand what’s changing, who’s targeted, and how to prepare.
By NomadicTax Research Team • 5-8 min read • April 7, 2026
## Australia’s Extended Tax Avoidance Taskforce: What It Means
Australia has announced a **two-year extension** of the ATO’s Tax Avoidance Taskforce from **1 July 2026**, backed by an additional **$1.2 billion** in funding.([ato.gov.au](https://www.ato.gov.au/media-centre/key-developments-in-tax-administration-in-australia?utm_source=openai)) The Taskforce intensifies scrutiny of multinationals, large public and private enterprises, and high-wealth individuals.([ato.gov.au](https://www.ato.gov.au/media-centre/key-developments-in-tax-administration-in-australia?utm_source=openai))
### Who’s in Focus
- Multinational corporations with Australian operations.([ato.gov.au](https://www.ato.gov.au/businesses-and-organisations/international-tax-for-business/private-wealth-international-program/new-international-tax-measures-affecting-private-groups?utm_source=openai))
- Large private groups, especially those with complex structures.([ato.gov.au](https://www.ato.gov.au/businesses-and-organisations/international-tax-for-business/private-wealth-international-program/new-international-tax-measures-affecting-private-groups?utm_source=openai))
- High-wealth individuals and groups engaging in cross-border arrangements.([ato.gov.au](https://www.ato.gov.au/media-centre/key-developments-in-tax-administration-in-australia?utm_source=openai))
### Key Changes to Note
- Broader powers to investigate high-risk tax avoidance schemes.([ato.gov.au](https://www.ato.gov.au/media-centre/key-developments-in-tax-administration-in-australia?utm_source=openai))
- Greater enforcement via the **Shadow Economy Compliance Program**, and personal income tax compliance activities.([kwm.com](https://www.kwm.com/content/kwm/au/en/insights/latest-thinking/australian-federal-budget-may-2024-25-tax-compliance?utm_source=openai))
- Increased transparency demands, especially under global minimum tax (GloBE) rules.([softwaredevelopers.ato.gov.au](https://softwaredevelopers.ato.gov.au/Pillar2_20250305?utm_source=openai))
## Practical Tips for Compliance
1. **Review your international structures** for tax risks, especially in high-inventiveness areas like royalties, intangibles, digital services.
2. Maintain strong documentation—commercial rationale rather than just tax outcomes.
3. Evaluate whether you’re eligible under existing treaties or global rules for relief or safe harbours. For example, the **TCbCR safe harbour** applies until **31 December 2026** for certain jurisdictions.([ato.gov.au](https://www.ato.gov.au/about-ato/consultation/in-detail/special-purpose-working-groups-key-messages/pillar-two-global-and-domestic-minimum-tax-working-group/pillar-two-global-and-domestic-minimum-tax-working-group-key-messages-3-april-2025?utm_source=openai))
4. Seek proactive advice from tax professionals ahead of the 2026–27 financial year, when many changes take effect.
## Example Scenario
Suppose you’re a private group with foreign operations that pay royalties through jurisdictions with low effective tax rates. Under the extended Taskforce, these payments will likely receive deeper ATO scrutiny. You should:
- Ensure the royalty withholding obligations are met and properly documented.
- Consider applying for new safe harbours.
- Review whether your global tax structure might attract income inclusion under GloBE rules.
## Implications for Stakeholders
| Stakeholder | What to Do Now | Impact Level | Risk Areas |
|---|---|---|---|
| Multinational businesses | Audit cross-border payments and intangible value flows | High | GloBE non-compliance, royalty mismatches |
| Large private groups | Update governance, ensure justified trust | High | Thin capitalisation, debt deductions |
| Tax advisors | Keep clients attuned to law changes, provide early guidance | Medium–High | Structuring, disclosures |
| Local businesses | Likely less directly impacted but watch for spillovers | Medium | Unexpected audit or rulings |
**Bottom Line**: With stronger enforcement and global minimum tax rules now in force, high-risk taxpayers must sharpen their tax planning. Transparent structures, rigorous documentation, and early engagement with advisers will be crucial in avoiding penalties or unfavourable audit outcomes.