The Committee will inquire into how taxpayers, particularly individuals and small businesses, engage with Australia’s tax system and examine opportunities to improve this experience through the greater use of information technology, automated and natural systems, and ‘nudges’.

As part of this inquiry, the Committee will examine:

• The prevalence and impact of the ‘cash economy’ on the tax system, mechanisms to ensure tax compliance and strategies used by comparable countries’ revenue authorities;
• how taxpayers currently interact with the tax and superannuation system, including through tax agents and other intermediaries, and the different compliance burdens of doing so;
• the contemporary use of information and communication technology by the Australian Taxation Office and comparative tax administrators to deliver services; and
• behavioural insights from other service delivery agencies including possible ways to better inform taxpayers to help them make decisions in their best interests.

 An explanatory paper, as attached, supports the terms of reference.