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Working Paper: Vignette

The Australian Taxation Office: Creating Value with Advanced Analytics

The Australian Tax Office has leveraged AI to nudge productive work-related expense claim behavior in real time.
By Ida A. Someh, Barbara H. Wixom, and Robert W. Gregory
VIGNETTE

A description of a firm’s approach to an IT management issue, written according to a prescribed template

Abstract

The Australian Tax Office (ATO) was a large government department in Australia that in 2015 established a dedicated program called Smarter Data to cultivate advanced data analytics capabilities. This vignette describes how the ATO created an AI solution that nudged taxpayers toward productive tax claim behaviors in real-time. The ATO intended for the solution to improve Australia’s complex tax lodgment (i.e., filing) process by making the process easier for taxpayers to accurately lodge and for auditors to equitably oversee. In 2018, the nudging resulted in $113 million in changed claim amounts. This vignette is second in a series of stories that illustrate value creation using AI.

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About the Researchers

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Ida A. Someh, Lecturer in Business Information Systems, UQ Business School at The University of Queensland, Australia

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Robert W. Gregory, Verizon Associate Professor of Commerce, McIntire School of Commerce, University of Virginia

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