Australia: Update on “Next 5,000” private groups tax performance program
How the ATO will engage with the “Next 5,000” privately owned and wealthy groups
The Australian Taxation Office (ATO) on 21 April 2024 issued an update on how it will engage with the “Next 5,000” privately owned and wealthy groups in its Next 5,000 private groups tax performance program.
The ATO defines the Next 5,000 as entities linked to “Australian residents who together with their associates control wealth of more than $50 million.”
According to the ATO release, it is expected that the record-keeping and administrative procedures of entities in the Next 5,000, to be able to keep pace with the changing scale and complexity of their business. The ATO advises entities to get “relevant, expert guidance” that can help them keep track and stay on top of their obligations and avoid tax debt.
As part of the Next 5,000 program, the ATO will also be communicating with tax professionals and other advisers to let them know what to focus on while guiding private and wealthy groups.
Entities in the program may also be contacted by the ATO to conduct a streamline assurance review.