ATO Compliance Model

The Compliance Model is a structured way of helping us to understand the factors that influence different compliance behaviour. This enables us to choose the most appropriate intervention for the circumstances.

Taxation compliance behaviour is influenced by many factors – business, industry, sociological, economic and psychological – all of which influence whether a person chooses to meet their obligations. The model shows a continuum of taxpayer attitudes towards compliance. At the base of the continuum, taxpayers have the desired attitude of being ‘willing to do the right thing’. At the other extreme, taxpayers have decided not to comply – choosing to evade or opt out of the tax system.

The model also summarises the different sorts of support and intervention that we may need to provide to collect the required revenue. The model suggests that the Tax Office has the ability to influence taxpayer behaviour through our response and interaction.


ATO