New powers for ATO to order attendance at record keeping course

As part of the mid-year economic and fiscal outlook (MYEFO), the Government announced a proposal to tackle a lack of financial knowledge by allowing the Commissioner discretion to order taxpayers to undertake an approved record-keeping course instead of applying financial penalties. Under the proposal, the Commissioner will be able to exercise discretion where he, “…reasonably believes there has been a failure by the taxpayer to comply with their reporting obligations.” Taxpayers deliberately avoiding their compliance obligations and/or refusing to engage with the ATO

would still be subject to the existing penalty and prosecution regimes. If enacted, the measure would come into force three months after the date of Royal Assent