Indicators should have a clear, unambiguous description so that everybody has a common understanding of the information the indicator is expected to deliver.
Express the indicators in a way that will help you to identify whether compliance behaviour has changed as a result of your strategies. A simple way to do this is to describe the indicator as 'a change or a difference in the rate or ratio or number of …'
A change in the percentage of activity statements lodged by the due date by sole traders with a turnover of less than $1 million.
Comparing the compliance behaviour before you implemented your strategies to the behaviour afterwards allows you to understand whether there is a change in behaviour that correlates with your strategies.
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You need to look at how you are going to measure changes from one period to the next. Consider the following questions when deciding which measurement method to use.
- Can you express the indicator in a numeric form?
- Will you compare the data against some form of benchmark?
- Is a calculation such as a ratio involved? What are the components of the calculation?
- Will you measure the whole population of interest or restrict your analysis to a sample?
A change in average rental income.
Calculated by dividing total dollar value of rental income by the total number of taxpayers reporting rental income.
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Find out more
For more information on measurement methods and data collection, see Measuring your indicators
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