What Australian Taxation Office (ATO) Is Focusing On this financial year and What It Means For Small Business Owners

Introduction

As a business owner, it’s important to be aware of what the ATO is watching. While much of the ATO’s recent focus is on larger privately‑owned and wealthy groups, the behaviours they’re looking at can be used as a useful indicator for all business owners: things to stay on top of now so you’re in a strong position.

(Disclaimer: I’m not a registered tax agent. This post is based on public information from the ATO website.)

What Is a “Private Group”? And What Is a “Wealthy Group”?

Firstly, let’s break down the terminology:

Private Group

·        According to the ATO, a private group is a group of business entities (like companies, trusts, partnerships) that are under the control of a single individual (“the controlling individual”) and their associates.

·        “Control” here means that person is the main decision-maker for the entire group.

·        The ATO treats the group as a single unit for risk assessment.

·        Because these groups often have many linked entities (trusts, companies, partnerships), their structures can be complex.

Wealthy Group

·        Wealthy groups are linked to high-net-wealth individuals. According to the ATO, this includes Australian resident individuals (and their associates) who control net wealth over $5 million.

·        These individuals typically have associated business entities (private companies, trusts) that form part of the group.

·        The ATO has special “tax performance programs” for different segments of these groups.

Focus Areas; what the ATO are looking for

According to the ATO, some of the key behaviours, structures and activities that attract attention include:

·        Late, missing or incomplete lodgements of tax returns or activity statements.

·        Use of complex or unclear business structures (trusts, inter‑entity loans, ownership/control flows).

·        Cross‑border transactions (financial exchanges between parties in different jurisdictions) or dealings with associated parties overseas.

·        Restructuring, or other significant changes in a business.

·        Higher‑risk areas such as trust distributions, CGT concessions, Division 7A loans, and specific industries like property, construction and retail.

What it means for business

Even if you’re a small business or community organisation, according to the ATO, the above focus areas are useful reminders for your business to follow good governance and compliance practices. Here are some practical actions you can take:

·        Ensure your lodgements are up‑to‑date and complete (BAS, activity statements, income tax).

·        Keep your business structure and paperwork clear and well documented.

·        If you’re planning major changes like succession or restructuring, get advice early.

·        Review your tax‑governance processes and document decision‑making.

·        Understand your industry-specific risks and check you’re meeting your obligations.

Why this matters

Keeping up with these areas is important for every business, even small businesses and community groups. Keep it simple, stay organised and follow the rules.

By aligning practices now, ensures being better prepared for future growth and opportunities.

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Final Disclaimer

I am not a registered tax agent. This blog post is for general awareness only and is based on publicly available information from the ATO. It is not personalised tax advice. Please seek a registered tax agent for specific guidance.