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  • Performance report

    This section of the report provides information on our performance outcomes under the GST administration performance agreement. Data for prior years is published in previous GST administration performance reports.

    Schedule A: Performance outcome measures

    Schedule A of the agreement relates to our performance outcome measures, detailed in four major sections of the agreement. Our results against these are provided in the tables below:

    Maintain compliance

    Table 1.1: Revenue outcome (Core indicators)

    Measure

    2014–15

    2015–16

    2016–17

    Total GST revenue (cash)

    $54.3b

    $57.4b

    $59.8b

    GST revenue Customs cash (net)

    $3.4b

    $3.5b

    $3.5b

    Collections growth softened in 2016–17 compared to 2015–16, with growth of 4.3% in 2016–17 compared to 5.5% in 2015–16. However, this was consistent with growth in consumption of goods and services subject to GST, and dwelling investment. Note that growth figures may vary slightly due to rounding.

    Table 1.2: GST debt (Core indicators)

    Measure

    2014–15

    2015–16

    2016–17

    Total GST debt outstanding

    $5.0b

    $5.0b

    $5.6b

    Collectable GST debt

    $3.5b

    $3.4b

    $3.8b

    GST debt collection rate

    6.4%

    5.9%

    6.4%

    In 2016–17, GST collectable debt increased by 13.5%. A range of factors contributed to this result:

    • the ramp-down of debt collection activities in the lead up to an expected system upgrade in November 2016
    • significant failure of storage hardware in December 2016, which impaired payment and debt-related activities into February 2017
    • deferral of debt collection activities in April and May 2017 for those impacted by Tropical Cyclone Debbie across Queensland and northern New South Wales.
    • challenging economic conditions, especially for small businesses.
    Table 1.3: GST debt (Supplementary indicators)

    Measure

    2014–15

    2015–16

    2016–17

    GST debt non-pursuit (dollar)

    $1,391.8m

    $1,396.3m

    $1,149.6m

    GST debt non-pursuit (percentage)

    27.2%

    27.9%

    23.1%

    Ratio of GST non-pursuit to GST revenue

    na

    na

    1.9%

    GST on-time payment rate

    na

    na

    88.2%

    Non-pursuits help ensure we are focusing our debt collection activities on the right cases by removing those cases where we are either prevented by law from pursuing recovery (irrecoverable at law) or where recovery is unviable (uneconomical to pursue).

    During the year, we implemented a new non-pursuit framework that takes a more pragmatic and commercial approach where available recovery options are not likely to result in a material collection outcome.

    Ratio of GST non-pursuit to GST revenue is a new measure. In 2016–17, the ratio of GST non-pursuits to GST revenue was 1.9%, with 1.4% irrecoverable at law and 0.5% uneconomical to pursue.

    GST on-time payment rate is a new measure. This international benchmark measure is used to evaluate the effectiveness of our on-time payment strategies. The number of GST payments paid on time divided by the total number of GST payments due gives the compliance level for GST payments.

    Table 1.4: Ageing of GST debt cases (Supplementary indicators)

    Measure

    2014–15
    (no.)

    2015–16
    (no.)

    2016–17
    (no.)

    Total number of cases

    304,414

    307,464

    275,076

    GST debt cases aged <29 days

    41,979

    45,808

    30,821

    GST debt cases aged 30–59 days

    72,535

    75,147

    72,899

    GST debt cases aged 60–89 days

    10,443

    10,140

    9,604

    GST debt cases aged 90 days to one year

    92,584

    95,177

    93,557

    GST debt cases aged > one year

    86,873

    81,192

    68,195

    Table 1.5: Ageing of GST debt (value) (Supplementary indicators)

    Measure

    2014–15

    2015–16

    2016–17

    GST debt cases – total value

    $3,472.9m

    $3,382.5m

    $3,838.1m

    GST debt cases aged <29 days

    $461.9m

    $428.2m

    $409.1m

    GST debt cases aged 30–59 days

    $446.2m

    $462.4m

    $553.0m

    GST debt cases aged 60–89 days

    $105.9m

    $120.6m

    $163.1m

    GST debt cases aged 90 days to one year

    $1,103.7m

    $1,103.4m

    $1,251.6m

    GST debt cases aged > one year

    $1,355.2m

    $1,267.8m

    $1,461.3m

    In 2016–17, we began implementing our 'purposeful first action' approach. This involves using analytics to identify an appropriate series of initial actions for the client, based on their compliance history, behaviour and engagement. This includes:

    • a holistic focus on payment and debt prevention
    • comprehensive risk-based analytical models driving increasingly tailored interactions
    • tailored campaigns targeting high-risk debtor populations
    • online and integrated payment solutions making it easier to pay.

    These treatment pathways are designed to take the most appropriate action for each client to recover the debt sooner than we have done before. Early results are positive, contributing to a reduction in the number of GST collectable debt cases older than 30 days.

    Note:

    All GST debt figures for June 2017 are subject to Australian National Audit Office (ANAO) sign-off, and are therefore preliminary.

    Table 1.6: Trend in GST gap (Supplementary indicators)

    Measure

    2014–15

    2015–16

    2016–17

    Estimated GST gap (including debt)

    $3.4b

    $3.8b

    $4.5b

    Excluding debt – percentage of accrual revenue

    4.6%

    6.2%

    7.1%

    Including debt – percentage of accrual revenue

    6.1%

    6.7%

    7.3%

    Notes:

    • The data for the reporting period 2016–17 relates to gap estimates in the 2015–16 tax year.
    • GST gap data remains one year in arrears due to the timing of National Accounts data releases.

    Estimates of the GST gap for 2014–15 and 2015–16 updated as business activity statements (BAS) are lodged or amended. The GST gap is also adjusted to account for revisions to external data sources, such as the Australian Bureau of Statistics. This process results in some revisions to prior-year estimates previously published.

    Cross-border services and products (Supplementary indicators)

    We will begin reporting on the measures in this category in 2017-18.

      Last modified: 30 Jan 2018QC 54336