The Australian Taxation Office (ATO) has released its latest Disputes and Outcomes Findings Report 2024–25, providing fresh insights into compliance efforts, dispute resolution, and areas of focus for large businesses.

The report shows that overall compliance continues to strengthen, with the latest tax gap data indicating that 94.1% of tax from large businesses was paid on time at lodgement. This represents the highest level of voluntary compliance since the establishment of the Tax Avoidance Taskforce.

Despite these gains, the ATO continues to pursue significant disputes with large corporations. In the 2024–25 period, audits and compliance activities led to more than $4 billion in additional income tax liabilities and $385 million in GST liabilities being raised.

Dispute resolution remains an important part of the compliance framework, with the ATO securing approximately $811 million in tax revenue through settlements over the past year.

Assistant Commissioner Jonathan Tang noted that while compliance rates are encouraging, the ATO will continue to invest in audit and enforcement programs to ensure a fair tax system.

“Large businesses are showing record levels of compliance, but where disputes arise, we are committed to resolving them effectively and ensuring the right amount of tax is paid,” Mr Tang said..

Source: ato.gov.au/business bulletins