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  • Cost-effective administration

    Table 3.1 - Key outcome: Cost effectiveness (Core indicator)

    Measure

    2013–14

    2014–15

    2015–16

    Cost as a % of revenue

    1.35%

    1.25%

    1.18%

    Note: International benchmark (2007) - Average 1.22, range 0.82 to 1.53

    The cost of administration as a percentage of revenue has reduced again this year to 1.18%. This means, in 2015–16 it cost $1.18 to collect every $100 in GST.

    Cost as a percentage of revenue graph

    Table 3.1 - Cost as a percentage of revenue graph The data that built this graph, showing the cost as a percentage of revenue figures for the past three financial years, is detailed in the above table.

    Table 3.2 - Key outcome: Cost effectiveness (Core indicator)

    Measure

    2013–14

    2014–15

    2015–16

    Cost per registrant

    $261

    $259

    $260

    Note: International benchmark (2007) - Average $410, range $157 to $527

    The calculation is based on total administration costs divided by the total registered active GST client base. Costs continue to remain relatively constant.

    Cost per registrant graph

    Table 3.2 - Cost per registrant graph The data that built this graph, showing the cost per registrant figures for the past three financial years, is detailed in the above table.

    Table 3.3 - Key outcome: Operational and cost management (Core indicator)

    Measure

    2013–14

    2014–15

    2015–16

    Variation of GST administration costs (total admin estimate)

    $698.6m

    $688.5m

    $679.6m

    Variation of GST administration costs from agreed estimate

    1.2%

    1.1%

    0%

    Over 2015–16 we aligned to our reinvention program, investing in technology and digital services, there were also impacts following finalisation of the Organisational Realignment Program. The full costs produced for 2015–16 will still be subject to review under the ANAOs Special Purpose Audit of GST administration costs. Refer to Administration expenditure for more detail.

    Table 3.4 - Key outcome: Operational and cost management (Core indicator)

    Measure

    2013–14

    2014–15

    2015–16

    Compliance costs as a % of total admin costs

    52.5%*

    51.0%*

    51.0%*

    Costs for active compliance techniques, compliance intelligence and risk management activities have remained steady.

    * The previously published figures excluded compliance costs incurred by the Department of Immigration and Border Protection. This has now been updated to reflect the cost of compliance across the total GST product.

    Compliance costs as a percentage of total admin costs graph

    Table 3.4 - Compliance costs as a percentage of total admin costs graph The data that built this graph, showing compliance costs as percentage of total administration cost figures for the past three financial years, is detailed in the above table.

    Table 3.5 - Key outcome: Operational and cost management (Supplementary indicators)

    Measure

    2013–14

    2014–15

    2015–16

    Electronic activity statements - finalised in 12 business days

    99.8%

    99.7%

    100%

    Objections to assessments - finalised in 56 calendar days of receiving all necessary information

    98%

    95%

    90%

    Written technical advice - taxpayer requests actioned in 28 calendar days

    93%

    92%

    94%

    Written technical advice - private rulings are finalised in 28 calendar days of receiving all necessary information

    95%

    93%

    96%

    Telephone general enquiry service - general calls answered within five minutes

    79%

    87%

    91%

    Business activity lodgment method - % of BAS lodged electronically (overall)

    61.6%

    67.6%

    73.6%

    Business activity lodgment method - % of BAS lodged electronically (monthly remitters)

    58.5%

    64.7%

    72.0%

    Business activity lodgment method - % of BAS lodged electronically (quarterly remitters)

    62.0%

    68.1%

    73.9%

    Business activity lodgment method - % of BAS lodged electronically (annual remitters)

    67.0%

    67.8%

    72.1%

    The number of BAS lodged electronically continues to increase through further enhancement of digital interaction via ATO online expansion, additional ATO app functionality, simplified and streamlined ato.gov.au and new digital promotion strategies.

    Table 3.6 - Key outcome: Operational and cost management (Supplementary indicators)

    Measure

    2013–14

    2014–15

    2015–16

    Quality of technical advice -
    % of cases that passed

    94%

    94%

    94%

    The ATO introduced a new quality model in July 2014. Under this model, there is no pass or fail grading applied to cases. Assessors are required to ‘stand in the shoes’ of taxpayers and look at cases from an ‘end to end’ perspective, looking for opportunities to improve the client experience. This model focuses on developing a culture of continuous improvement. Cases are assessed against four criteria: customer service, accountability, accuracy and performance.

    Table 3.7 - Key outcome: Operational and cost management (Supplementary indicators)

    Measure

    2013–14

    2014–15

    2015–16

    Australian resident ABR registrations - finalised in 20 business days

    99%

    97%

    98%

      Last modified: 20 Apr 2017QC 51810