Initiative overview
Real-time analytics enabled over 712,000 real-time prompts to taxpayers to check amounts in their 2023–24 income tax returns for mistakes they may have made. This resulted in an estimated $92.6 million of revenue protected by averting incorrect returns. Providing tailored assistance when needed makes the tax return process easier for taxpayers and contributes to a more efficient tax system. Supporting voluntary compliance through proactive and preventative activities is key to sustainably reducing the tax gap. The tax gap is the difference between what the ATO expects to collect and what would have been collected if every taxpayer was fully compliant with the law.
While real-time analytics nudge messaging has been successful, the ATO is cautious with its approach to expanding the program. The ATO recognises that adding more nudge messages may diminish their impact on taxpayer behaviour. It is therefore carefully considering how the program may be extended while striking the right balance. The ATO continues to assess how advances in AI technologies and techniques can enable further improvements to the tax time experience and help support taxpayers to voluntarily comply with tax obligations.
