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  • Schedule B: GST Budget and administration activities

    This part of the report addresses our performance in relation to Schedule B of the GST Administration Performance Agreement (1 July 2017 - 30 June 2020). The GST administration cost statement, is a special purpose financial report. The statement is prepared using statements of accounting concepts and on an accrual basis.

    The cost of administering GST is calculated by applying the ATO’s strategic costing framework. This is a cost attribution model consistent with the Australian Government’s accrual-based outcomes and programs costing framework. It calculates the proportion of our total operating expenses that relate to GST administration activities on a full-cost basis.

    The cost drivers are monitored monthly and are subject to review by the ATO Chief Finance Officer, the ATO GST Product Committee chaired by the Deputy Commissioner of Indirect Tax, and other ATO senior executives. The costs of administering GST are subject to an annual independent audit by the ANAO.

    In 2016–17, the GST voluntary compliance program represented an additional $92.6 million in funding (see Schedule D).

    Table 5: GST expenditure by program deliverable

    Program deliverable

    2016–17
    Actual
    ($m)

    2017–18
    Estimated
    ($m)

    2018–19
    Projected
    ($m)

    Program 1 – ATO

    1.1 Policy Advice and Forecasting

    4.9

    4.4

    4.1

    1.2 Design and Build Administrative Solutions

    46.4

    60.0

    56.7

    1.3 Input to Law Design

    0.3

    0.4

    0.4

    1.5 Law Assurance

    3.0

    4.7

    4.4

    1.6–1.7 Cross Agency Support and Government and Stakeholder Relations

    4.6

    2.4

    2.3

    2.1 Registrations

    19.3

    14.8

    14.0

    2.2 Processing and Accounts

    52.2

    54.1

    51.2

    2.3 Customer Service

    49.7

    25.6

    24.2

    2.4 Debt Collection

    64.5

    61.4

    58.1

    2.5–2.6 Interpretative assistance

    23.6

    29.1

    27.5

    3.1 Marketing and communication

    10.5

    13.4

    12.6

    3.4 Active Compliance – ATO

    270.4

    245.1

    231.8

    3.4 Active Compliance – Department of Immigration and Border Protection

    53.6

    51.2

    50.8

    3.5 Compliance intelligence and risk management

    24.3

    15.6

    14.8

    5.1 Resolve Disputes

    34.0

    30.8

    29.1

    5.2 Prevent Disputes

    1.9

    3.8

    3.6

    Program 2 Tax Practitioners Board

    5.1

    4.8

    4.5

    Program 3 Australian Business Register

    11.2

    9.4

    8.9

    Total

    682.4

    631.1

    599.2

    Notes:

    • The actual 2016–17 administration costs are preliminary results (see ‘Variation of GST administration costs’ in Table 3.2).
    • There is a large reduction in the 2019–20 projected estimates, which reflects the full impact of the GST voluntary compliance measure terminating with funding ceasing at the end of 2018–19.
    • The costs as at August 2017 are subject to an ANAO special purpose audit, which has commenced, with an expected completion date of December 2017.
    • The 2017–18 estimated expenditure and 2018–19 projected expenditure against each program deliverable are based on the actual expenditure against each deliverable for 2016–17 and may change.
      Last modified: 30 Jan 2018QC 54336