IGT to review ATO employer audits

The Inspector-General of Taxation (IGT) will review the ATO’s employer obligations audits and compliance activities, with a particular focus on the impact on small businesses.

A major focus of the review will be the difficulties caused by the need to determine employee or independent contractor status. Other issues raised for consideration by the IGT include:

• situations in which genuine employees cannot recover their unpaid entitlements
• the conduct of ATO employer obligations audits which, among other things, may involve onerous information requests and a perceived unwillingness to discuss issues and solutions, leading to unnecessary compliance costs