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  • Compliance liabilities and cash collections

    We completed 3.4 million compliance activities this year, raising $16.9 billion in total liabilities and collecting $11.8 billion in cash (some relating to liabilities raised in previous years). This is compared to total liabilities of $15.6 billion raised and cash collections of $10.2 billion in 2016–17.

    FIGURE 2.3 Compliance liabilities and collections by product, 2013–14 to 2017–18

    Alternative text is available for this table from the link below.

    NOTES
    Results for luxury car tax have been combined with GST in the graph.
    Collections are a combination of actual collections and estimates of collections based on sampling.

    Collections also include collections on tax, penalties and interest raised in prior years.
    Liabilities are the net value of debit and credit amendments from active compliance intervention on returns, statements and claims. The impact is a combination of tax, penalties and interest.
    Results also include our activities to prevent incorrect refunds or payments being issued.
    Over this period, liabilities have been higher than cash collections as a proportion of liabilities raised. This is because large audit results in dispute take time to resolve through court processes.

    Cash collections include cash paid on disputed amended assessments raised.


    Data for Figure 2.3 is available as an alternative to this graph.

    Income tax

    We delivered on our income tax revenue measures and other compliance activities, with cash collections from our direct and wider revenue activities being $10.3 billion.

    TABLE 2.17 Compliance income tax plans and results, 2015–16 to 2017–18

    Compliance plans and results

    2015–16
    $m

    2016–17
    $m

    2017–18
    $m

    Liabilities plans (including measures)

    8,823

    10,198

    13,368

    Liabilities raised

    11,427

    13,636

    14,072

    Cash plans (including measures)

    6,777

    7,182

    9,746

    Estimated cash collected

    8,604

    9,220

    10,282

    NOTE
    The plans and results include both direct and some wider revenue effect outcomes.

    Goods and services tax

    We delivered on our GST revenue measures to government and the states and territories, with cash collections from our direct and wider revenue activities being $3.0 billion.

    TABLE 2.18 Compliance GST plans and results, 2015–16 to 2017–18

    Compliance GST plans and results

    2015–16
    $m

    2016–17
    $m

    2017–18
    $m

    Liabilities plans (including measures)

    2,839

    2,654

    3,011

    Liabilities raised

    3,906

    3,548

    3,652

    Cash plans (including measures)

    2,236

    2,113

    2,454

    Estimated cash collected

    2,943

    2,883

    2,963

    NOTE
    The plans and results include both direct and some wider revenue effect outcomes.

    Excise and other indirect taxes

    We raised excise liabilities of $19.5 million from compliance activities and collected $19.9 million cash (including collections from liabilities raised in previous years).

    For excise transfers (predominantly fuel tax credits) our compliance activities resulted in adjustments in favour of taxpayers of $69.8 million, and adjustments in favour of revenue of $68.4 million. Of the adjustments in favour of the revenue, we collected $61.5 million this year and a further $9.0 million from liabilities raised in previous years.

    Voluntary disclosures, penalties and interest

    Where people identify they have made a mistake or omission in a previously lodged tax return or activity statement, we encourage them to disclose this and work with us to fix the problem.

    We raised $959 million in liabilities as a result of such voluntary disclosures. This included around $241 million in GST liabilities, with cash collections of $234 million as a result of voluntary disclosures from large businesses in 2017–18.

    Interest is charged on unpaid tax liabilities to ensure fairness for taxpayers who do pay on time and the community as a whole. The penalty provisions encourage taxpayers to take reasonable care in complying with their tax obligations. We can generally remit (reduce or cancel) interest charges and penalties where this is fair and reasonable.

    Table 2.19 shows the penalties and interest for 2015–16 to 2017–18.

     TABLE 2.19 Penalties and interest, 2015–16 to 2017–18

    Penalties and interest

    2015–16
    $m

    2016–17
    $m

    2017–18
    $m

    Penalties applicable

    1,362

    1,529

    2,692

    Penalties remitted

    296

    399

    473

    Penalties collected

    666

    1,139

    685

    Interest applicable

    1,519

    688

    4,728

    Interest remitted

    854

    725

    1,504

    Interest collected

    1,706

    2,450

    2,098

      Last modified: 19 Oct 2018QC 57114