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  • Program 1.1 Australian Taxation Office

    Purpose statement

    The purpose of the ATO is to contribute to the economic and social wellbeing of Australians by fostering willing participation in Australia’s tax and superannuation systems. We are:

    • making it easier for people to participate
    • delivering contemporary and tailored services
    • ensuring purposeful and respectful relationships
    • a professional and productive organisation.

    Performance overview

    The ATO performance results for 2016–17 indicate a year of solid and consistent performance in achieving our purpose. We achieved our targets on 17 of our performance criteria, indicating continued success in developing a client-centric organisation and in delivering our core functions including registration, payment, reporting and collections.

    One of the key achievements was our level of employee engagement, which is the highest since we began participating in the APS Census in 2012. With culture and engagement of the workforce a factor influencing performance as a whole – in particular the client experience and willing participation – this is a positive foundation for the future. On two criteria, we substantially achieved our targets, with slight declines in timeliness of lodgments (activity statements and income tax returns) and a 0.3% increase in the ratio of collectable debt to net tax collections. On both criteria, actions are under way to improve the outcomes.

    The intention of the annual performance statement is to report on the performance criteria included in the Treasury Portfolio Budget Statements 2016–17 (PBS) and ATO corporate plan 2016–17 to accurately reflect the performance of the ATO in achieving its purpose.

    In considering our overall assessment of fostering willing participation we have regard to the:

    • complexity of the tax and superannuation environment, and how our activities influence the behaviour of clients in meeting their obligations
    • interrelated nature of performance criteria, which mean that results should be viewed as a suite of indicators, rather than in isolation
    • use of estimates for some criteria.

    In addition, it is important to note the trends over time in results, both in absolute terms and relative to the performance target for the relevant year. We assess our performance targets annually to determine where existing results are expected to be maintained and where future performance is expected to be stronger.

    We will continue to monitor and assess performance as we build on the outcomes we have achieved to date.

    The ATO has 21 measures for Program 1.1 to demonstrate how well we are achieving our purpose. These are set out in the Australian Taxation Office Budget Statements (PDF, 2.08MB)This link will download a file in the PBS, and in the ATO corporate plan 2016–17 (PDF, 443KB)This link will download a file.

    Broader information about our performance in fostering willing participation is provided in Part 2.1(14) of this report.

    Results summary

    The following table presents an overview of our overall performance against the 21 performance criteria in the ATO corporate plan 2016–17 published in August 2016, and for the ATO in the PBS published in May 2016.

    The following symbols are used in Table 2.16.

     Achieved

    Achieved

     Substantially achieved

    Substantially achieved

     Not achieved

    Not achieved

     Result not available

    Result not available

     

    TABLE 2.16 Overview of performance results – Program 1.1

    Measure

    Result

    Satisfaction – Community satisfaction with ATO performance

     Achieved

    Fairness – Perceptions of fairness in disputes

     Achieved

    Professionalism — People surveyed agreed that the ATO listens to and responds to feedback

     Achieved

    Culture – Level of employee engagement

     Achieved

    Ease – People surveyed agree the ATO makes it easy to access services and information

     Achieved

    Digital – Proportion of inbound interactions received digitally

     Achieved

    Compliance cost – Adjusted average cost of managing tax affairs

     Achieved

    Registration – Proportion of

    • companies registered in the system
    • individuals registered in the system
     

     Achieved

    Lodgment – Proportion of

    • activity statements lodged on time
    • income tax returns lodged on time
     

     Substantially achieved

    Payment – Proportion of liabilities paid on time by value

     Achieved

    Superannuation – Adjusted employer superannuation contributions as a proportion of adjusted salary and wages

     Achieved

    Correct reporting – Tax gap as a proportion of revenue

     Achieved

    Tax assured – Proportion of the tax base where the ATO has justified trust that it is accurate

     

    Audit yield – Cash collected from direct compliance activities

     Achieved

    Total revenue effects – Tax revenue from all compliance activities

     Achieved

    Debt – Ratio of collectable debt to net tax collections

     Substantially achieved

    Expected revenue – Proportion of revenue collected compared with forecast

     Achieved

    Budget – ATO manages its operating budget to balance

     Achieved

    Cost of collection – Cost to collect $100

     Achieved

    Expenditure:

    • Tax administration expenditure as % of gross domestic product
    • Non-tax expenditure as % of total expenditure
     

     Achieved

    Cost per transaction

     Result not available

    Performance results

    Results for each of the 21 performance measures for Program 1.1 are set out in the following table, against their targets for 2016–17. Results for 2015–16 are also shown (except where the measure is new).

    TABLE 2.17 Program 1.1 Australian Taxation Office, 2015–16 to 2016–17

    Performance criterion

    Criterion source (page)

    Result

    Target

    PBS

    Corp plan

    2015–16

    2016–17

    2016–17

    Satisfaction – Community satisfaction with ATO performance(1)

    168

    19

    74%

    Achieved

    75%

    Greater than or equal to 2015–16

    Analysis

    Community satisfaction with the ATO’s performance in 2016–17 was slightly higher than in 2015–16 and met the performance target.

    With a few exceptions, overall the ATO’s performance against the 11 areas tested in our surveys of community satisfaction remained relatively stable. Consistent with previous years, nine of the 11 areas performed strongly, with the following identified as areas for improvement – ‘kept informed about status/ delays/ issues’ and ‘ATO would be responsive to feedback’.

    As was the case in 2015–16, people who had dealt with the ATO recently had a more positive view and greater level of satisfaction than those who had not had an interaction with the ATO for some time.

    (1) Results presented for 2016–17 reflect a methodology change from previous years. The 2015–16 result reflects survey outcomes for the 2015 calendar year, whereas the 2016–17 result reflects survey outcomes for the 2016–17 financial year.
    TABLE 2.17 Program 1.1 Australian Taxation Office, 2015–16 to 2016–17

    Performance criterion

    Criterion source (page)

    Result

    Target

    PBS

    Corp plan

    2015–16

    2016–17

    2016–17

    Fairness – Perceptions of fairness in disputes

    168

    19

    55%

    Achieved

    56%

    Greater than or equal to 2015–16

    Analysis

    The results for the perception of fairness in disputes criteria are slightly higher, compared to 2015–16. Our commitment to maintain and continuously develop a better client service environment in all our interactions and to improving the client experience is central to our objective of resolving disputes as early as possible, while ensuring we treat taxpayers fairly and in a consistent way.

    With the aim of preventing and managing disputes effectively, during 2016–17 we continued to increase our level of early engagement with taxpayers. This has led to improvements in three key areas of influence:

    • time taken to make a decision
    • amount of client contact
    • ease and helpfulness of information provided by our officers to clients.
    TABLE 2.17 Program 1.1 Australian Taxation Office, 2015–16 to 2016–17

    Performance criterion

    Criterion source (page)

    Result

    Target

    PBS

    Corp plan

    2015–16

    2016–17

    2016–17

    Professionalism — People surveyed agreed that the ATO listens to and responds to feedback

    168

    54%(2)

    Achieved

    55%

    Greater than or equal to 2015–16

    Analysis

    Positive perceptions that the ATO listens to and responds to feedback were slightly higher than in 2015–16 and met the performance target.

    Views across client groups indicate that:

    • tax professionals’ perceptions of the ATO were weaker than other customer groups with respect to responsiveness to feedback
    • businesses who had recently interacted with the ATO were a key contributor to the overall improvement in perceived view of the ATO’s responsiveness to feedback
    • recent contact with the ATO had a positive influence on wider perceptions of the ATO.
    (2) The 2015–16 result reflects survey outcomes for part of the 2015–16 financial year, whereas the 2016–17 result reflects survey outcomes for the full 2016–17 financial year. The full 2015–16 financial year result available for this measure is 54%.
    TABLE 2.17 Program 1.1 Australian Taxation Office, 2015–16 to 2016–17

    Performance criterion

    Criterion source (page)

    Result

    Target

    PBS

    Corp plan

    2015–16

    2016–17

    2016–17

    Culture – Level of employee engagement

    169

    19

    6.5 out of 10

    Achieved

    6.8 out of 10

    Greater than or equal to 2015–16

    Analysis

    Results of the June 2017 APS Census run by the Australian Public Service Commission (APSC), show that overall engagement has increased since 2016. The 2017 results for overall engagement are the highest they have been since we began participating in 2012.

    The ATO is categorised by the APSC as a large operational agency. Our results were above the average for agencies in this category and also above the APS overall averages. The increase in results across all measures of engagement was counter to the trend of large agencies, which remained steady overall.

    We have continued to invest in our culture and leadership strategies, focusing on building strong and inspiring leaders, reinforcing a client-focused culture and strengthening capability to enable our staff to reach their potential.

    TABLE 2.17 Program 1.1 Australian Taxation Office, 2015–16 to 2016–17

    Performance criterion

    Criterion source (page)

    Result

    Target

    PBS

    Corp plan

    2015–16

    2016–17

    2016–17

    Ease – People surveyed agree the ATO makes it easy to access services and information

    169

    19

    78%(3)

    (75%)(4)

    Achieved

    75%

    Greater than or equal to 2015–16

    Analysis

    Perceptions that the ATO makes it easy to access services and information were stable compared to the full 2015–16 financial year result and met the performance target. It is also worth noting the result is greater than that in both 2013–14 and 2014–15.

    Satisfaction with our website significantly increased in 2016–17, particularly in relation to ease of access on preferred devices and availability when needed.

    The ATO taking individual circumstances into account, and being knowledgable in dealings, were two of the areas identified for improvement for our inbound correspondence, where a reduction in overall satisfaction with that service was observed.

    (3) The 2015–16 result reflects survey outcomes for part of the 2015–16 financial year, whereas the 2016–17 result reflects survey outcomes for the full 2016–17 financial year.
    (4) The full 2015–16 financial year result is now available for this measure as 75%.
    TABLE 2.17 Program 1.1 Australian Taxation Office, 2015–16 to 2016–17

    Performance criterion

    Criterion source (page)

    Result

    Target

    PBS

    Corp plan

    2015–16

    2016–17

    2016–17

    Digital – Proportion of inbound interactions received digitally

    169

    19

    Achieved

    88%

    85%

    Digital – Income tax returns

     

     

    96%

    96%

     

    Digital – Activity statements

     

     

    80%

    78%

     

    Digital – Tax file number registration

     

     

    92%

    94%

     

    Analysis

    Necessary changes have been made to the measurement methodology this year, impacting the ability to compare results to prior years(5). Results improved relative to 2015–16 based on a common methodology, showing the ATO’s success in reducing paper and shifting clients to digital within the three services currently counted(6).

    Key factors that may be attributed to the increase in the digital take-up rate for component services in 2016–17 were:

    • Income tax returns – the myTax service offer was expanded beyond those with simple affairs and made available to all individual taxpayers. Web chat and co-browse was trialled in October 2016, to provide digital assistance to clients in the process of completing their myTax lodgment. Tax Help volunteers were trained to promote and support myTax lodgments when assisting clients.
    • Activity statements – targeted campaigns to assist clients to move to digital lodgment. This included outbound telephony calls to paper lodgers, demonstration of online services to small business clients in their premises, and general awareness information through social media.
    • Authentication solutions – interacting with the ATO securely online was made even easier. For instance, a new service was released that enabled individuals in business, or anyone authorised to act on behalf of a business, to use their myGov credential to access online business services (by connecting their ABN to their myGov account).
    (5)The 2016–17 methodology was updated to:
    • exclude activity statements that were auto-finalised by the ATO and required no action from the client
    • include income tax return amendments and prior-year lodgments
    • calculate results based on date of receipt, rather than the date of processing/finalisation.
    (6) For example, the inclusion of auto-finalised activity statements increased the digital volume reported last year. If only client-initiated interactions had been counted, last year’s result would have been 74% digital take-up, which means that this year’s result would show a 4% increase.
    TABLE 2.17 Program 1.1 Australian Taxation Office, 2015–16 to 2016–17

    Performance criterion

    Criterion source (page)

    Result

    Target

    PBS

    Corp plan

    2015–16

    2016–17

    2016–17

    Compliance cost – Adjusted average cost of managing tax affairs

    169

    19

    3.6% reduction

    (2014–15 returns)

    Achieved

    1.0% reduction (2015–16 returns)

    Maintain the 2014–15 AWOTE* adjusted income year figures of $293 (average) and $131.50 (median)

    Analysis

    This measure shows any movement in the cost to individual taxpayers of managing their tax affairs.

    The adjusted average cost of managing tax affairs for 2015–16 income tax returns declined by 1.0% compared to the previous year, continuing its decline since the 2010–11 income year. After removing outliers that may unduly affect the result, the adjusted median cost of managing tax affairs gives an indication as to the underlying cost for most individuals. For 2015–16 income tax returns, the adjusted median has also declined at the rate of 1.0% on the previous year.

    The cost of managing tax affairs includes the costs of preparing and lodging tax returns and activity statements, fees paid to tax advisers, and the costs of tax reference material. While the impact of external market forces can influence these, our strategies for making it easier to comply, through the provision of the better guidance and advice and contemporary and digital services, also influence this trend.

    *AWOTE – average weekly ordinary time earnings (for full-time adults)
    TABLE 2.17 Program 1.1 Australian Taxation Office, 2015–16 to 2016–17

    Performance criterion

    Criterion source (page)

    Result

    Target

    PBS

    Corp plan

    2015–16

    2016–17

    2016–17

    Registration – Proportion of companies registered in the system

    169

    19

    68.0%

    Achieved

    66.62%

    The ATO aims to ensure all entities required to participate in the tax and superannuation systems are registered on the ATO client register.

     

    Registration – Proportion of individuals registered in the system

    169

    19

    127.0%(7)

    Achieved

    101.2%

    Analysis

    The presented data supports the view that those who should be registered are registered. We continue to undertake research to better inform the baseline we use to determine what the level of individual and company registration should be.

    Companies

    Presented results compare the number of companies registered by the ATO to the number of companies registered by the Australian Securities and Investments Commission (ASIC).

    Not all companies that are registered with ASIC have taxation reporting requirements, due to the nature of their corporate structure, or the fact that they may not be operational yet. Therefore, the proportion is expected to always be well below 100%.

    This measure remains fairly stable, with no significant change in the last 12 months. This is expected as the ATO ASIC Registered Company client population continues to trend in alignment with Active Company Registrations data direct from the ASIC website.

    Individuals

    The presented data supports the view that individuals who should be registered are registered, with trends in registration closely aligned to trends in resident population growth.

    The change in results between 2015–16 and 2016–17 is driven by a change to the measurement methodology and thus the presented results are not comparable across years. The proportion is always expected to remain above 100% because the ATO’s definition of a resident captures a greater number of people than the ABS estimated resident population. This is particularly true for individuals who have recently migrated to Australia or are short-term visitors, such as seasonal workers.

    (7) Previously, the ATO calculated the measure using active individual TFN registrations for all age groups, compared to the ABS resident population aged 15 to 64. The updated methodology for 2016–17 only includes TFN registrations for individuals aged 15 to 64, in order to better align to the ABS population that is used as the comparator. Under the previous methodology, the 2016–17 result remained steady at 127%.
    TABLE 2.17 Program 1.1 Australian Taxation Office, 2015–16 to 2016–17

    Performance criterion

    Criterion source (page)

    Result

    Target

    PBS

    Corp plan

    2015–16

    2016–17

    2016–17

    Lodgment – Proportion of activity statements lodged on time

    169

    19

    78.1%

    Substantially achieved

    77.0%

    78.7%

    Lodgment – Proportion of income tax returns lodged on time

    169

    19

    82.3%

    (2014–15 returns)

    Substantially achieved

    82.6%

    (2015–16 returns)

    83.4%

    (2015–16 returns)

    Analysis

    Activity statements

    On-time lodgment performance for 2016–17 activity statements finished the year at 77.0%. This is 1.1 percentage points below the 2015–16 end-of-year results. The end-of-year target of 78.7% was not met, with the end-of-year results 1.7 percentage points below the target.

    The end-of-year results for on-time lodgment of monthly and annual activity statements have performed well against the total target. However, quarterly activity statement performance has eroded overall achievement against the 78.7% target.

    Lodgment outcomes are being analysed to determine possible factors for these results so that tailored lodgment compliance strategies can be adjusted to improve performance. Initial analysis has identified that trends in quarterly lodgment by sole traders in small business are a key contributor to this result. We are working to better understand this population so that we can implement measures to improve performance.

    Income tax returns

    On-time lodgment performance for 2015–16 income tax returns finished the year at 82.6%. This is an improvement of 0.3 percentage points, compared to the 2015–16 end-of-year results for 2014–15 income tax returns.

    This result is 0.8 percentage points below the end-of-year target of 83.4%.

    • Although the lodged on-time percentage has improved compared to prior years, the end-of-year target has not been achieved. The trend shows a gradual improvement in performance over the past five years, which indicates the compliance strategies used to influence lodgment has been successful albeit only incrementally. Compliance strategies continue to be enhanced to influence and improve on-time lodgment performance.
    TABLE 2.17 Program 1.1 Australian Taxation Office, 2015–16 to 2016–17

    Performance criterion

    Criterion source (page)

    Result

    Target

    PBS

    Corp plan

    2015–16

    2016–17

    2016–17

    Payment – Proportion of liabilities paid on time by value

    169

    19

    89.5%

    Achieved

    88.2%

    Overall 85%

    Pay as you go (PAYG) withholding

    94.9%

    93.8%

     

    Individuals – returns and instalments

    69.4%

    68.5%

     

    Companies – returns and instalments

    87.2%

    81.9%

     

    Goods and services tax

    89.5%

    88.2%

     

    Excise

    93.1%

    98.0%

     

    Superannuation funds – returns and instalments

    93.6%

    94.4%

     

    Analysis

    Payment on time by value has remained steady across the past four financial years, in the range of 88.2% to 89.5%. The 2016–17 outcome is lower than the 2015–16 outcome, but still exceeds the overall target.

    The slight decrease for 2016–17 is primarily driven by large corporate income tax, with significant compliance raised liabilities influencing the performance indicator. While these liabilities are undergoing dispute resolution processes, the current calculation method considers these liabilities due and not paid.

    See tax payment performance for more information.

    TABLE 2.17 Program 1.1 Australian Taxation Office, 2015–16 to 2016–17

    Performance criterion

    Criterion source (page)

    Result

    Target

    PBS

    Corp plan

    2015–16

    2016–17

    2016–17

    Superannuation – Adjusted employer superannuation contributions as a proportion of adjusted salary and wages

    169

    19

    10.03%

    Achieved

    10.00%

    9.5%

    Analysis

    In 2016–17, total employer superannuation guarantee contributions as a proportion of total salary and wage was 10.00% against the statutory superannuation guarantee rate of 9.5% for 2015–16, thus exceeding the performance target.

    The trend remains steady compared to 2015–16 and indicates some employers are continuing to pay more than the minimum 9.5%. Through our monitoring of other indicators, such as complaints or notifications received from employees, we also know that some employers are not paying enough. The ATO follows up on all potential matters of non-compliance.

    See superannuation guarantee gap in this report and ato.gov.au for more information.

    TABLE 2.17 Program 1.1 Australian Taxation Office, 2015–16 to 2016–17

    Performance criterion

    Criterion source (page)

    Result

    Target

    PBS

    Corp plan

    2015–16

    2016–17

    2016–17

    Correct reporting – Tax gaps as a proportion of revenue

    169

    19

    See Tax gap estimates for detailed information and trends

    White tick symbol with green background

    See Tax gap estimates for detailed information and trends

    Reduce the gap to as low as practicable given the nature and complexity of the law and the resources available.

    Note: prior to 2016–17, this PBS measure referred only to the GST gap.

    Analysis

    Gaps are lagging measures based on the laws applicable at the time. In addition to the impacts of ATO strategies and activities, they are influenced by a range of factors, including global, economic and social. The ATO seeks to reduce the actual gap to as low as practicable given the nature and complexity of the law and the resources available. These estimates of the actual gaps are best viewed as a trend over time and should be consider in conjunction with a broad suite of measures, including audit yield, wider revenue effects, and broader economic indicators.

    More comprehensive analysis of tax gap trends since 2011-12, including analysis with respect to superannuation guarantee and large corporate groups, is provided at ato.gov.au/taxgap.

    TABLE 2.17 Program 1.1 Australian Taxation Office, 2015–16 to 2016–17

    Performance criterion

    Criterion source (page)

    Result

    Target

    PBS

    Corp plan

    2015–16

    2016–17

    2016–17

    Tax assured – Proportion of the tax base where the ATO has justified trust that it is accurate

    170

    20

    3 white dots symbol on blue background

    Under development

    Analysis

    The methodology for this measure is under development. We will report a result when the methodology is finalised and the results are reliable.

    TABLE 2.17 Program 1.1 Australian Taxation Office, 2015–16 to 2016–17

    Performance criterion

    Criterion source (page)

    Result

    Target

    PBS

    Corp plan

    2015–16

    2016–17

    2016–17

    Audit yield – Cash collected from direct compliance activities

    170

    20

    $9.6 billion

    Achieved

    $10.2 billion

    $6.2 billion

    Analysis

    Audit yield is the additional tax liabilities identified and collected through audit activities. Audit yield measures the additional tax revenues that are assessed and collected as a result of an audit or similar downstream compliance activity. Cash collections includes cash collected in relation to liabilities raised both in the current financial year as well as previous years. This will only include direct cash collections. The result represents an increase compared with the previous year.

    TABLE 2.17 Program 1.1 Australian Taxation Office, 2015–16 to 2016–17

    Performance criterion

    Criterion source (page)

    Result

    Target

    PBS

    Corp plan

    2015–16

    2016–17

    2016–17

    Total revenue effects – Tax revenue from all compliance activities

    170

    20

    Achieved

    $15 billion

    Under development

    Analysis

    The total revenue effects figure for 2016–17 is $15.0 billion. As this measure was previously under development, there is not yet a performance target against which to assess this result. Presented results for this measure require a level of estimation and are not based wholly on observable data.

    Current wider revenue effect estimates predominantly comprise the ongoing impact of audits, other corrective activity, and our assistance and education efforts in the periods that follow them. As the coverage of our engagement activities with taxpayers broadens, the measure of total revenue effects will provide a more comprehensive estimate of the impact. Increasingly, we are measuring the effect of our preventative activities – that is, where our efforts prevent non-compliance. To establish that ATO activities resulted in additional revenue, we need to establish a defensible counterfactual. For this reason, we believe our estimates are understated.

    For both wider revenue effects and audit yield, a change in company tax paid is treated as a revenue effect. In reality, company tax receipts can create an entitlement to franking credits for resident shareholders that could offset a portion of these effects in future periods.

    See revenue effects for more information.

    TABLE 2.17 Program 1.1 Australian Taxation Office, 2015–16 to 2016–17

    Performance criterion

    Criterion source (page)

    Result

    Target

    PBS

    Corp plan

    2015–16

    2016–17

    2016–17

    Debt – Ratio of collectable debt to net tax collections

    170

    20

    5.3%

    Substantially achieved

    5.6%

    Below 5.5%

    Analysis

    The ratio of collectable debt to net tax collections was 5.6% (5.56%), which exceeds the below 5.5% target.

    The ratio was driven by a range of factors such as the year-on-year increases in audit-raised liabilities, a decrease in debt collection activities due to a system upgrade, deferral of debt collection activities for those impacted by Cyclone Debbie in Queensland and northern New South Wales, system failures in December and February.

    See tax payment performance, which influences collectable debt results, for more information.

    TABLE 2.17 Program 1.1 Australian Taxation Office, 2015–16 to 2016–17

    Performance criterion

    Criterion source (page)

    Result

    Target

    PBS

    Corp plan

    2015–16

    2016–17

    2016–17

    Expected revenue – Proportion of revenue collected compared with forecast

    170

    20

    4.1% below original Budget forecast

    Achieved

    1.2% below original Budget forecast

    +/– 2.5%

    Analysis

    The 2016–17 result represents an improvement compared with the previous year and meets our performance target. As in previous years, most of the variation in revenue collected compared with forecast can be explained by changes in external factors in the economy.

    TABLE 2.17 Program 1.1 Australian Taxation Office, 2015–16 to 2016–17

    Performance criterion

    Criterion source (page)

    Result

    Target

    PBS

    Corp plan

    2015–16

    2016–17

    2016–17

    Budget – ATO manages its operating budget to balance

    170

    20

    0.8% deficit

    Achieved

    0.13% surplus

    +/–0.6%
    (+/– $20m)

    Analysis

    The overall result for 2016–17 was an operating surplus of $4.2 million or 0.13% surplus (excluding depreciation, amortisation, finance lease and revaluation adjustments made for our financial statements). This result represents a strong result in management to a balanced budget. The ATO maintained a key focus on budget management that ensured resources were allocated to risks and priorities in order to optimise performance.

    TABLE 2.17 Program 1.1 Australian Taxation Office, 2015–16 to 2016–17

    Performance criterion

    Criterion source (page)

    Result

    Target

    PBS

    Corp plan

    2015–16

    2016–17

    2016–17

    Cost of collection – Cost to collect $100

    170

    20

    $0.77 gros

    $0.84 net

    Achieved

    $0.74 gross

    $0.81 net

    Consistent with trend

    Analysis

    The cost to collect $100 decreased from $0.77 in 2015–16 to $0.74 in 2016–17, excluding GST and its administration costs. The decrease is largely due to the 4.9% increase in collections in 2016–17.

    TABLE 2.17 Program 1.1 Australian Taxation Office, 2015–16 to 2016–17

    Performance criterion

    Criterion source (page)

    Result

    Target

    PBS

    Corp plan

    2015–16

    2016–17

    2016–17

    Expenditure –Tax administration expenditure as % of gross domestic product

    170

    20

    0.17%(8)

    Achieved

    0.17%

    0.2%

    Expenditure –Non-tax expenditure as % of total expenditure

    170

    20

    5.7%

    Achieved

    5.8%

    Consistent with trend

    Analysis

    The ratio of tax administration expenditure to gross domestic product (GDP) has declined slightly in each year since 2011–12. While nominal GDP has a growth component, declining ATO staff numbers in recent years have led to minimal growth in the cost of tax administration. This results in a downward trend in the ratio, although this sometimes falls within the rounding of presented results.

    The percentage of ATO non-tax expenditure of the ATO has increased slightly from 5.7% to 5.8% for the 2016–17 financial year. The performance criterion was introduced in 2015–16 and the target has been met for 2016–17. The non-tax expenditure is comprised of Superannuation regulatory expenses (Lost Members Register and Unclaimed Super Money), Tax Practitioners Board, Australian Business Register and Australian Charities and Not-for-profits Commission.

    (8) The change from the previously published estimate is due to updated GDP data from the ABS.
    TABLE 2.17 Program 1.1 Australian Taxation Office, 2015–16 to 2016–17

    Performance criterion

    Criterion source (page)

    Result

    Target

    PBS

    Corp plan

    2015–16

    2016–17

    2016–17

    Cost per transaction

    170

    20

    Result not available

    Under development

    Analysis

    The development of the methodology for this indicator has not been finalised for reporting this financial year.

    We are continuing to work to develop an accurate methodology to establish a reliable cost-per-service per channel measure. In turn, this will allow us to meet our obligation to report the cost per transaction indicator for our flagship services on the whole-of-government performance dashboard maintained by the Digital Transformation Agency.

      Last modified: 30 Oct 2017QC 53760