The ATO has been targeting lump sum payments received by medical practitioners. A recent decision of the Federal Court means that ATO audit activity is likely to continue in certain cases.

AUSTRAC collects and shares financial data with the ATO. The ATO uses this data to identify individuals who may not be declaring all of their income. Taxpayers should expect the ATO to review funds coming into Australia – regardless of the amounts – and be prepared to explain the source of those funds.

Medical and allied health industry businesses using service entities must check their service entity arrangements comply with payroll tax laws.