Cost effective administration

1. Cost effectiveness

1(a) Cost as a % of revenue

Projections have been adjusted to reflect revenue estimates from the most recent MYEFO. Prior to 2003–04 this was calculated on an accrual basis.

This measure equates to the cost of collecting $100 of GST revenue. This measure is calculated by:

(Total GST administration costs times one hundred) divided by Total GST Revenue (Cash)

1(b) Cost per registrant

Projections have been calculated assuming a client base of 2.5 million. Due to a high level of uncertainty with future client numbers, projections should not be made beyond the immediate future year. This measure is calculated by:

Total GST administration costs divided by Total registered client base

2. Operational and cost management

2(a) Variation of GST administration costs

This measure reflects the percentage by which the actual GST product cost varies from the agreed budget, as specified in Schedule B. It will be reported retrospectively.

2(b) Compliance costs as a % of total administration costs

(Compliance costs [SCG 3.4(ATO)&3.5] times one hundred) divided by Total GST administration costs

2(c) Electronic activity statements are finalised in 12 business days

This is a taxpayer charter standard. A 94% target applies.

2(d) Objections are finalised in 56 calendar days of receiving all necessary information

A taxpayer dissatisfied with a decision of an assessment, can formally challenge that decision by lodging an objection against the decision. The taxpayer charter for the ATO to respond is 56 calendar days from the time all necessary information is received. A 70% target applies.

2(e) Written technical advice – taxpayer requests and private rulings are finalised in 28 calendar days

This is a taxpayer charter standard. An 85% target applies for general taxpayer requests and an 80% target applies to private rulings. The private rulings standard is subject to the ATO receiving all necessary information.

2(f) Telephone general enquiry service

An 80% target applies for general calls answered within 5 minutes during the ATO's peak period of July to October.

2(g) BAS lodgment method — % of BAS lodged electronically

Our objective is to increase the proportion of BAS lodged electronically.

2(h) Quality of technical advice - percentage of cases that passed

Quality assessment is performed as part of the Integrated Quality Framework. The framework takes a systemic approach to quality improvement, and focuses on addressing identified opportunities for improvement. The measure reflects the critical quality elements of administrative soundness, integrity, correctness and appropriateness in terms of whether a case is aligned, meets or exceeds standards (which equates to a pass under the prior method of assessing quality).

Where a case does not receive a pass rating it does not necessarily mean that the client received incorrect advice. Main reasons for a case not to pass — not all of the client's issues were identified and where identified, consequential issues, which would have allowed the client to make an informed GST decision, were not addressed. If advice is incorrect, it is withdrawn and replacement advice issued.

2(i) Registrations - Australian resident ABR registrations are finalised in 20 business days

This is a taxpayer charter standard. A 93% target applies.

    Last modified: 26 Jun 2014QC 40911