What key strategy does the ATO Green Book emphasize to enhance voluntary compliance?

The strategy emphasized by the ATO Green Book to enhance voluntary compliance centers around education and clear communication of tax responsibilities. This approach is rooted in the understanding that taxpayers are more likely to fulfill their obligations when they are well-informed about what those obligations entail. By providing accessible information, resources, and support, the ATO aims to demystify the tax system, helping individuals and businesses understand their rights and responsibilities. This clarity encourages voluntary compliance by fostering trust and transparency between taxpayers and the tax authorities, ultimately leading to higher levels of compliance.

In contrast, while strict penalties for non-compliance can serve as a deterrent, they can also create fear and adverse attitudes towards compliance. Limiting access to tax information would undermine transparency and could lead to confusion or misinformation among taxpayers. Regular auditing, although important for enforcement, does not inherently promote a proactive approach to compliance; instead, it focuses on identifying issues after they arise. Therefore, the emphasis on education and communication better supports the goal of voluntary compliance as outlined in the ATO Green Book.