PwC’s October Tax Briefing, hosted by Patricia Muscat, featuring special guests Deputy Commissioner, Litigation and Legal Services, Rebecca Saint and Acting Deputy Commissioner, Public Groups Michelle Sams from the ATO and PwC’s Sarah Saville and Suzanne Kneen unpacked the latest findings, priorities and what large businesses can expect next from the Top 100 and Top 1,000 assurance programs.
The session opened with a rapid flyover of recent developments, including Payday Super reforms and the ATO’s draft compliance approach to complying with these rules in the first year, final guidance on the thin capitalisation third party debt test, the ATO’s compliance framework for franked distributions funded by capital raisings, significant court decisions on State land tax surcharge validity and refinements to the Government’s superannuation tax proposals.
The ATO’s core message was clear: assurance is moving decisively into real time. For the Top 100, 90% now have a current‑year review in progress, with the ATO aiming for the vast majority to be in real time by year‑end. High or medium overall assurance now covers 83% of this cohort, including 64% at high assurance. Governance continues to strengthen, with 41% at Stage 3 (effectively designed and operating in practice) and a further 40% at Stage 2. On GST, 97% have achieved high or medium overall assurance and 38% are at high, though governance remains more mixed with 42% still at Stage 1. The new supplementary annual GST return, introduced from 2024–25, will underpin a lighter‑touch ‘assurance check‑in’ for high‑assurance Top 100 taxpayers, replacing the four‑year refresh review.
In the Top 1,000, 82% of the recalibrated population have now been assured, with 26% at high overall assurance, 63% at medium and 11% at low. The ATO’s differentiated approach—separating a significant pool (roughly >$1bn revenue) from the general pool—is already shortening timelines and sharpening focus, with the most pronounced improvements in the significant pool segment. Governance is a decisive unlock: 52% have reached Stage 2 or 3 for income tax (up from 40% last year) and, for GST, 42% are at Stage 2 and 5% at Stage 3. The ATO stressed that board‑endorsed control testing plans are now baseline for Stage 2, and regular independent testing is the expectation for Stage 3. Where plans are promised but not actioned, governance ratings can be downgraded.
The panel addressed the compliance burden for large businesses head‑on. The ATO acknowledged the proliferation of reporting—across local file, International Dealings Schedule and the Reportable Tax Position Schedule—and confirmed work is underway with the Large Business Stewardship Group to identify duplication, embed a ‘provide it once’ principle across forms and increase transparency on how the ATO uses the data collected on forms. The ATO confirmed that Pillar Two and public country‑by‑country reporting (PCBC) will not be brought into justified trust reviews, however Pillar Two is likely to be the subject of risk-based reviews in the future. The application of the new thin capitalisation rules will be a priority for future reviews, including how taxpayers have responded to the new rules. On cross‑border dealings, the ATO stressed that high overall assurance remains achievable without high assurance on every transaction—provided taxpayers are prepared, with transfer pricing documentation and evidence ready within the Top 1,000’s shorter review windows.
The ATO explained their recently released three‑tier model mapping behaviours and events across public and multinational businesses, flagging that taxpayers can use this to understand whether their positions align with the norm or sit out of tolerance, signalling where attention is more likely.
For taxpayers, the benefits of stronger governance are tangible. High assurance translates into more targeted, lighter engagements; for GST, strong governance and clean risk flags can mean very limited or even no GST component in a combined review. The ATO also signposted potential new service offerings for the Top 100 and Top 1,000 significant pool taxpayers—for example, pre‑lodgment engagement channels that will help deliver timely, practical certainty for those with strong assurance track records.
The takeaway from the panel was pragmatic and optimistic: be ready, understand how your positions compare with peers and published ATO views, and use governance and testing to turn assurance into a sustained compliance dividend.
You can watch the virtual event on demand now, and additionally, find out more in our Top 100 and Top 1,000 Tax Alerts.
