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  • Compliance outcomes

    Table 2.1: Strike rate by market segment (Core indicators)

    Measure

    2016–17

    Overall strike rate

    69%

    Micro businesses

    70%

    Small and medium businesses

    72%

    Large businesses

    51%

    Government

    67%

    Not-for-profit organisations

    69%

    Other

    31%

    Strike rate by market segment is a new measure. The strike rate (percentage of cases leading to re-assessment) is an Organisation for Economic Co-operation and Development (OECD) measure, which can indicate the effectiveness of case selection in detecting 'correct reporting'. These results do not include bulk correspondence cases.

    Table 2.2: Refund integrity strike rate by market segment (Core indicators)

    Measure

    2016–17

    Overall refund integrity strike rate

    64%

    Micro businesses

    65%

    Small and medium businesses

    51%

    Large businesses

    40%

    Government

    57%

    Not-for-profit organisations

    60%

    Other

    87%

    Refund integrity strike rate is a new measure. Significant costs are carried by both government and business because of the time lag involved when a refund is stopped, including delayed cash flows and GST administration costs. This measure will over time indicate if improvements have been made to the ATO’s risk-based audit selection strategy.

    Table 2.3: Compliance liabilities and collections (Core indicators)

     

    2016–17

    Measure

    GST tax liabilities

    Total cash
    collection

    Cash collection
    rate

    Total compliance liabilities raised, and cash collection, and cash collection rate by market segment

    $2,895m

    $2,749m

    65%

    Micro businesses

    $1,301m

    $1,334m

    58.8%

    Small and medium businesses

    $1,021m

    $889m

    66%

    Large businesses

    $467m

    $450m

    79%

    Government

    $8m

    $2m

    2.5%

    Not-for-profit organisations

    $61m

    $63m

    95%

    Other

    $37m

    $11m

    16.5%

    This year we had a total of approximately $288 million in large 'outlier' cases and in 2015–16 we had approximately $474 million. Cash collections include amounts raised in previous financial years but collected during the financial year specified. The cash collection rate is based on current year collections, only, as a percentage of current year liabilities.

    Outlier cases are defined as a GST adjustment greater than $20 million.

    Table 2.4: GST registrations (Core indicators)

    Measure

    2014–15

    2015–16

    2016–17

    Compulsory GST registrations compared with potential GST registrations based on income tax returns data

    95.9%

    95.4%

    94.7%

    The ratio of compulsory GST registrations to potential GST registrations has dropped slightly to 94.7%. The fall was mainly in non-individual entities across most industries.

    Note: This indicator is reported one year in arrears due to reliance on corresponding income tax data.

    Table 2.5: BAS lodgment (Core indicators)

    Measure

    2014–15

    2015–16

    2016–17

    Total BAS lodged (including yearly)

    89.9%

    89.8%

    87.6%

    % lodged (monthly)

    93.7%

    94.0%

    93.2%

    % lodged (quarterly)

    88.3%

    88.0%

    85.3%

    Total lodged on time (including yearly)

    78.0%

    77.7%

    76.4%

    % lodged on time (monthly)

    82.9%

    83.2%

    83.5%

    % lodged on time (quarterly)

    76.0%

    75.3%

    73.5%

    On-time lodgment of monthly BAS has steadily increased over the past few years. However, a slight decline in monthly overall lodgment occurred this year. There has also been a decline in on-time and overall lodgment for quarterly BAS.

    Table 2.6: GST returns filed by intermediaries (Supplementary indicators)

    Measure

    2014–15

    2015–16

    2016–17

    GST returns filed by intermediaries or tax agents

    44.4%

    45.8%

    45.6%

    This is an international benchmark measure which indicates the usage of tax intermediaries or tax agents, or both, for the filing of GST or VAT returns.

    Table 2.7: Objections (Supplementary indicators)

    Measure

    2014–15

    2015–16

    2016–17

    Number of objections

    1,214

    1,150

    859

    Objection rate

    7.43%

    7.89%

    5.62%

    Number of litigation cases received

    106

    67

    53

    Number of objections which result in litigation

    na

    na

    46

    A range of factors can impact on the number of objections received, including improvements in the strike rate (or improved risk identification). The number of objections has declined over the last three years.

    The number of objections received in a year divided by the number of audits with a financial adjustment finalised in the year become the objection rate, which can provide an indicator of objection levels and trends over time.

    Litigation of tax disputes is conducted either in the Administration Appeals Tribunal (AAT) or the Federal Court in the first instance, with appeals to the Full Federal Court and by special leave to the High Court. Over the last three years, the number of litigation cases received has declined significantly.

    Number of objections that result in litigation is an ATO-wide Information and assistance services performance measure, with the 2016–17 target being 20 per thousand (2%). It is a new measure. Although higher than the ATO average, GST objection and litigation rates are declining and this number should also decline over time.

      Last modified: 30 Jan 2018QC 54336