Individuals, corporations, or organisations could receive a multi-million-dollar fine if caught using or disclosing confidential government taxation information, according to recently passed NSW government legislation.
If found accused, individuals could receive maximum penalties of $1,109,900 and corporations of $5,549,500 under the Revenue, Fines and Other Legislation Amendment Bill 2023.
Finance minister Courtney Houssos said the hefty penalties send the strongest signal that divulging confidential government information won’t be tolerated.
“Our new confidentiality laws ensure integrity remains at the heart of the NSW Government’s tax system,” Ms. Houssos said.
The legislation was introduced to the parliament on Aug. 1 to modernise penalties, address dishonest business practices like “phoenixing” and promote integrity. It could also offer greater fairness and transparency for the people of NSW.
“Since being sworn in, the Minns Labor Government has consistently demonstrated its commitment to the highest levels of integrity,” Ms. Houssos said.
On Aug. 1, the Revenue, Fines and Other Legislation Amendment Bill also introduced a series of changes that promote integrity and compliance and improve the administration of the state’s fines system, including a maximum penalty of $100,000, 2 years’ imprisonment, or both, for evading or attempting to evade tax through a deliberate act or omission.
Also introduced were increased penalties for some offences under the “Taxation Administration Act 1996,” like providing false or misleading information or wilfully destroying records, ranging from $27,500 to $110,000.
This introduction could align NSW with current penalties imposed by the Commonwealth and other states.
Thirdly, a maximum penalty of $5500 for an individual or $10,100 for a non-individual for offering or agreeing to be falsely nominated was introduced, including for driving and traffic offences. It comes after appointing another individual for the act is already an offence.
“We’re putting on notice people who actively and deliberately seek to mislead for personal gain,” Ms. Houssos said.
Relief for GPs
On Aug. 24, the NSW government included a 12-month hiatus on tax penalties and interest accrued on outstanding payroll tax debts incurred before and at the commencement of the 12 months after routinely consulting externally on tax policy and legislation confidentially.Another 12-month hiatus on payroll tax audits for GPs and their practices were included, allowing for ongoing consultation with the sector, including the Royal Australian College of General Practitioners and the Australian Medical Association.
Ms. Houssos said the pause relieves GPs under cost pressure “because of the actions of the previous Federal Liberal Government.”
The current increased cost pressures on GPs follow the former Federal Liberal Government’s decision to freeze the indexation of bulk-billing rebates for many years.
Any threat to bulk-billing rates for NSW patients is a concern for the government, given the potential flow-on increase in presentations to emergency departments and hospitals, already under significant strain.
“This matter is historic and dates back to before 2018. Multiple court hearings and the neglect of the previous Coalition government have hampered its resolution. We understand this neglect has created great uncertainty in the GP community,” Ms. Houssos said.
Shadow treasurer Damien Tudehope said some GP clinics were facing demands for retrospective payroll tax bills of half a million dollars or more, and “many medical clinics are now discovering that operating in a particular way made them liable to additional payroll tax.”
“The best solution to this urgent problem is to provide an amnesty from all such payroll tax for the past five years and an exemption for the next two years while a satisfactory solution is found,” Mr. Tudehope said.
“Retrospective audits leading to demands for payments of payroll tax covering five years of operation are creating a crisis for these clinics that must be addressed,” he said.
“This will put serious additional pressure on emergency departments and could result in patients having to wait even longer to receive care,” Mr. Kean said.
Finance shadow minister Eleni Petinos said the immediate tax relief would help ensure the survival of many clinics and local GP clinics that provide invaluable community services across the state.
“With growing waiting lists across NSW hospitals and ongoing industrial chaos in the health sector, NSW should be seeking to support medical clinics,” she said.
“We are working hard to rebuild and restore essential services ignored by the previous government,” Ms. Houssos said.
“This will take time, but we are committed to doing this carefully and thoughtfully to achieve the best result we can,” she said.
