New Commissioner of Taxation Rob Heferen has introduced himself to the small business community with humility, using a conference to admit he has much to learn about life in the private sector.
“I am still going through the process of listening and learning, and working with stakeholders to gain their perspectives,” Heferen said, according to the transcript of a speech he will deliver to the Council of Small Business Organisations Australia (COSBOA) national summit in Sydney on Thursday.
But the new commissioner did not indicate the Australian Taxation Office (ATO) will slow down its tax compliance activities, which have returned to normal after years of extraordinary COVID-era leniency.
Heferen, who has taken the top job after a 35-year career in public service, said his resume gave him a unique perspective on tax administration.
He referenced experiences working within the ATO stretching back to the 1990s, a Treasury secondment that included work on the landmark Henry Tax Review, and a tenure as Deputy Secretary within the Treasury.
That wealth and depth of tax know-how is countered by what Heferen admitted was limited personal experience in the private sector.
“In one sense I have very narrow experience having always been in the APS, but in another sense, my experience is broad from being in around nine portfolios,” he said.
With only a month under his belt as Commissioner of Taxation, “I won’t sit here and pretend to have all the answers,” he added, praising the insights gleaned from the ATO’s small business stewardship group.
Despite those acknowledgements, Heferen did not indicate the ATO will change from the course set by predecessor Chris Jordan, who oversaw the normalisation of compliance activities through 2023.
“In respect to debt, you’ll be aware that in December last year we returned to normal debt collection across all markets,” he said.
“Ensuring taxpayers pay their tax and super obligations is a key focus for us.”
The ATO is still staring down around $50 billion in collectable debt – the same amount underlined at the end of Jordan’s tenure – with Heferen claiming some 65% of all collectable debts are related to small business.
About 65% of all collectable debt owed relates to small business and 74% of that relates to activity statements.
“It’s critical that all employers – big and small – keep on top of their obligations to their employees first and foremost, as well as their obligations to government in respect to GST, income tax, and other taxes,” Heferen said.
But the ATO will endeavour to undertake its duties with “fairness, compassion, and a strong sense of horizontal equity,” Heferen added, saying that businesses that don’t meet their obligations gain an unfair advantage against those that do.
Senior Business Journalist
Focused on the small business sector, David’s work covers the political, regulatory, and economic issues facing Australian entrepreneurs. Prior to joining SmartCompany, he was a reporter for Business Insider Australia. You can follow him on LinkedIn.
