AI-driven and Digitalized Tax Administration in Australia: Toward a Hybrid Compliance Model for the Asia-Pacific Region

This article examines how artificial intelligence and related digital technologies are reshaping aspects of tax administration and compliance theory. Traditional models, such as deterrence and tax morale, treat enforcement and legitimacy as distinct dynamics, while Kirchler’s Slippery Slope Framework integrates them but predates large-scale digitalization. Drawing on Australia’s use of predictive auditing, virtual assistants and pre-filled returns, the article develops a hybrid compliance perspective in which technology influences both deterrence and trust simultaneously. Comparative references to Singapore, Indonesia and New Zealand illustrate how these effects vary depending on institutional capacity and taxpayer confidence. The article argues that technology’s impact is contingent on transparency, safeguards and governance choices, noting that it can support compliance but may also undermine legitimacy if deployed without appropriate oversight.