As part of the 2011-12 Federal Budget, the government announced the introduction of taxable payments reporting for businesses in the building and construction industry. The aim of the system is to improve compliance with tax obligations by those contractors who are currently not doing the right thing.
The Australian Taxation Office ("ATO") is making it harder for people in business who deliberately use cash transactions to hide income and evade tax obligations. Data matching is an expanding program used by the ATO to identify those who are not reporting all their income. The latest targets include coffee suppliers' and hardware store trade account holders.
On 11 May 2010, the government released an announcement that it would provide individual taxpayers with an optional standard tax deduction of $500 from 1 July 2012 in lieu of claiming work-related expenses and the cost of managing their tax affairs.