The existing purpose-built National Taxpayer System (NTS), the main ATO income tax processing system which became operational in 1975, had been evolving incrementally. The ATO Integrated System (AIS) system for core and major transaction processing became operational in 1993-94.
'A New Tax System' reforms were implemented in 2000. Several major tax reforms were introduced, including the goods and services tax (GST). The new GST and other changes were announced with the biggest market research effort, and the biggest communication and education campaign, ever made by a government agency.6
From the point of view of process, the introduction of the GST was a success, but from the community perspective it was not. One respondent said our 81 page booklet Our Guide to GST was 'like admiring the chrome on the Mack truck before it runs you over'.7
The reforms proved difficult and tax professionals and the small business community, in particular, began to call for major change in the way tax laws were administered.
'For the two years or so following tax reform in July 2000 we were in a grey haze. It was difficult to communicate with the Tax Office. We didn't have time to deal with them, they didn't have time to deal properly with us. The whole accounting fraternity was at its wit's end.'
Wendy Macdonald, Adelaide tax agent, quoted in MIETC, January 2006
The message was clear: the ATO had to do better. It needed to:
- adopt better and more efficient and effective work practices and technological facilities for a rapidly changing business environment
- improve productivity significantly in an environment of continuing fiscal constraint
- improve community compliance
- reduce risk to revenue, and
- increase community confidence in the integrity of Australia's taxation system.
The ATO could not achieve this without a new IT platform to replace the aging core systems.
Last Modified: Thursday, 12 May 2011