What’s New in Tax: The ATO is Reviewing 273,000 Private Tax Groups

If your business or personal wealth falls within the ATO’s new target range, it’s no longer a question of if you’ll be reviewed, but when. Over the last five years, the ATO has meticulously examined the tax affairs of Australia’s largest private taxpayers. Now, they’re expanding their scrutiny to 273,000 private tax groups. If you control wealth of between $5 million and $50 million or run a business with a turnover exceeding $10 million, you are in the ATO’s sights.

At Hoffman Kelly Accountants, we’ve already guided clients through the ATO’s initial review program, helping them prepare before the ATO even knocked on their door. Now, as this program extends, the need for proactive planning has never been more critical.

What You Need to Know About the ATO’s Tax Performance Program

The ATO’s Medium and Emerging Private Groups Tax Performance Program is designed to ensure that high-wealth individuals and businesses have the correct systems and processes to manage their tax obligations. The review process follows a structured approach:

1. Initial Notification – The ATO sends a letter advising that your group is under review and requests preliminary information (typically allowing only four weeks to respond).
2. Interview Stage – The ATO conducts an interview to understand your tax affairs, business operations, and identify key areas of focus.
3. Data Collection – A further request for information is issued, allowing the ATO to verify how high-risk tax areas are being managed.
4. ATO Review – The ATO analyses the information provided and may request further clarification.
5. Finalisation Letter – The ATO issues a position letter outlining their findings and any required actions.

For larger groups, this process has taken six to nine months from start to finish. The time and effort required can be significant, especially if you aren’t well-prepared.

Why You Need to Act Now

If you fall within the ATO’s criteria, you will be reviewed. The question is whether you will be ready.

Hoffman Kelly has extensive experience in helping clients navigate these ATO reviews. The businesses and individuals we have assisted in previous review rounds have benefited significantly from preparing in advance, ensuring their tax structures, reporting systems, and compliance frameworks are rock solid before the ATO comes knocking.

How Hoffman Kelly Can Help

Before the ATO begins its review, we can:

• Assess Your Tax Risk – We evaluate your current tax structures, identifying potential red flags before the ATO does.
• Strengthen Systems & Processes – We ensure your tax management frameworks are compliant with ATO expectations.
• Provide Risk Mitigation Strategies – Where risks exist, we help you understand the ATO’s likely position and explore options to resolve issues proactively.

Don’t Wait for the ATO to Call

This isn’t just another compliance exercise—it’s a direct review of how your tax affairs are managed. If you fall within the ATO’s criteria, you need to be proactive. The sooner you act, the stronger your position will be when the ATO comes knocking.

At Hoffman Kelly, we don’t just react to ATO audits—we help our clients stay ahead of them. Book a consultation today and ensure your tax affairs are in order before the ATO makes its move.