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  • Cost-effective administration

    Table 3.1: Cost effectiveness (Core indicators)

    Measure

    2014–15

    2015–16

    2016–17

    Cost as a % of revenue

    1.25%

    1.18%

    1.14%

    Cost per registrant

    $259

    $260

    $256

    Total registered client base

    2.6m

    2.6m

    2.7m

    The cost of administration as a percentage of revenue has reduced again this year to 1.14%. This means, in 2016–17 it cost $1.14 to collect every $100 in GST. (Note: International benchmark (2007) – average 1.22%, range 0.82% to 1.53%.)

    The cost-per-registrant calculation is based on total administration costs divided by the total registered active GST client base. Costs continue to remain relatively constant. (Note: International benchmark (2007) – average $410, range $157 to $527.)

    The total registered population was 2.7 million as at 1 July 2016–17. Over time, this measure will show how fluid the client base is through GST registrations.

    Table 3.2: Operational and cost management (Core indicators)

    Measure

    2014–15

    2015–16

    2016–17

    Total administration estimate

    $688.5m

    $679.6m

    $682.4m

    Variation of GST administration costs from agreed estimate

    1.1%

    0%

    0%

    Compliance costs as a % of total administration costs

    51%

    51%

    51%

    Note: The full costs produced for 2016–17 will still be subject to review under the ANAO’s special purpose audit of GST administration costs (see Schedule B for more detail).

    Table 3.3: Electronic activity statements (Supplementary indicators)

    Measure

    2014–15

    2015–16

    2016–17

    Electronic activity statements finalised in 12 business days

    99.7%

    100%

    99.7%

    GST electronic payment rate

    na

    na

    97%

    For electronic activity statements finalised within 12 business days, the taxpayer charter standard of 94% target applies.

    GST electronic payment rate is a new measure. It measures the extent to which electronic services are used to make GST payments and is used to assess the effectiveness of the ATO’s new electronic payment strategies.

    Table 3.4: Written technical advice (Supplementary indicators)

    Measure

    2014–15

    2015–16

    2016–17

    Taxpayer requests are actioned in 28 calendar days

    92%

    94%

    93%

    Private rulings are finalised in 28 calendar days of receiving all necessary information

    93%

    96%

    91%

    This is a taxpayer charter standard. An 85% target applies for general taxpayer requests and an 80% target applies to private rulings. The private rulings standard is subject to the ATO receiving all necessary information.

    Table 3.5: BAS lodgment method (Supplementary indicators)

    Measure

    2014–15

    2015–16

    2016–17

    % of BAS lodged electronically – overall

    67.6%

    73.6%

    77.5%

    % of BAS lodged electronically – monthly remitters

    64.7%

    72.0%

    76.8%

    % of BAS lodged electronically – quarterly remitters

    68.1%

    73.9%

    77.8%

    % of BAS lodged electronically – annual remitters

    67.8%

    72.1%

    74.9%

    Our objective is to increase the proportion of BAS lodged electronically.

    Table 3.6: Quality of technical advice (Core indicators)

    Measure

    2014–15

    2015–16

    2016–17

    % of cases with achieved rating

    94%

    94%

    94.5%

    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.

    Note: Data was drawn from a sample of 51 cases for 2016–17.

    Table 3.7: ABR registrations (Core indicators)

    Measure

    2014–15

    2015–16

    2016–17

    Australian resident ABR registrations finalised in 20 business days

    97%

    98%

    98%

    The taxpayer charter standard of 93% target applies.

      Last modified: 30 Jan 2018QC 54336