BUDGET 2015: Tax dodgers targeted in widespread crackdown

Health workers claiming their weddings on tax and tourists on working holidays will be targeted in a bid to make a fairer tax system.

A loophole which had allowed health workers and those at not-for-profit organisations to salary sacrifice meals, entertainment, alcohol in restaurants, wedding expenses and even cruising holidays will now be tightened.

The Government expects to claw back $100m over four years by introducing a cap of $5000 for these claims.

It follows Treasurer Joe Hockey’s earlier announcement that multi-nationals avoiding their onshore tax obligations would be investigated and hit with stiff penalties.

Strengthened tax avoidance measures include:

• Digital music, books and movies bought online from overseas suppliers will now be subject to GST;

• Thirty major companies who use ‘contrived or artificial’ tax avoidance schemes will be targeted;

• These companies face penalties of double their outstanding tax bills;

• Australians living overseas will be chased down to repay their university debts;

• Working holidaymakers must now pay tax from their first dollar earned, saving half a billion over four years;

• Some fly-in, fly-out workers will no longer be able to claim the Zone tax offset if they don’t permanently live in a remote area; 

• Offshore accounts are now subject to review in a deal between Australia and tax haven Switzerland;

Mr Hockey told Parliament the measures were an attempt to get everyone to “pay their fair share”.

“Everyday Australians rightly believe that if a dollar of profit is earned here, then you should pay tax here.

“Under this new law, when we catch companies cheating, they will have to pay back double what they owe, plus interest.”

FULL COVERAGE: Budget all about boosting small businesses and getting people into work

SMALL BUSINESS: Cuts in tax and red tape

FARMERS: Reprieve for struggling rural communities

JOBSEEKERS: Tougher hurdles for young to access benefits

FAMILIES: Overhaul to change how families parent

HEALTH: New treatments in ‘moderate’ spending increase

EASTER EGGS: Weird and wacky moments in the Budget