The aim of this trial is to improve the communication of the Australian Taxation Office (ATO) with new entrants to the tax system to increase tax compliance. New entrants to the tax system have to lodge a tax return for the first time. The trial will evaluate the effectiveness of nudge letters that aim to create a positive and supportive first experience to encourage lodgement of a taxpayer's overdue tax return. The target population consists of individuals not in business who (based on data of the ATO) have never lodged an income tax return, have a requirement to lodge in 2017, have not lodged their 2017 income tax return, are new to the tax system in 2017 and would not otherwise be contacted by the ATO under existing risk treatments. Two treatments will be tested: (1) Treatment Group 1: individuals who receive a letter from the ATO stating that "We have not received your tax return"; (2) Treatment Group 2: individuals who receive a letter from the ATO stating "Welcome to the tax system - you need to lodge your first tax return" and providing details to help with the lodgement process. The treatments will be compared to a control group consisting of individuals who are not being contacted by the ATO. About 20,000 individuals were randomly assigned.
Two treatments groups are considered: (1) Treatment Group 1: individuals who receive a letter from the ATO stating that "We have not received your tax return"; (2) Treatment Group 2: individuals who receive a letter from the ATO stating "Welcome to the tax system - you need to lodge your first tax return" and providing details to help with the lodgement process. The control group consists of individuals who are not being contacted by the ATO. Copies of sample letters are attached in "Docs & Materials" of this registration.
About 20,000 individuals were randomly assigned to two treatment groups and a control group.
A random list of the full population was created by the ATO using simple randomization.
Treatment Group1: 9965 individuals; Treatment Group 2: 4296 individuals; Control Group: 3998 individuals.