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  • Compliance outcomes

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

    Measure

    2016–17
    %

    2017–18
    %

    Overall strike rate

    69

    69

    Micro businesses

    70

    68

    Small and medium businesses

    72

    74

    Large businesses

    51

    52

    Government

    67

    37

    Not-for-profit organisations

    69

    78

    Other

    31

    72

    Note: 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'.
     

    Overall strike rate remains unchanged from 2016–17. It remains above the benchmark.

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

    Measure

    2016–17
    %

    2017–18
    %

    Overall refund integrity strike rate

    64

    68

    Micro businesses

    65

    70

    Small and medium businesses

    51

    54

    Large businesses

    40

    49

    Government

    57

    29

    Not-for-profit organisations

    60

    65

    Other

    87

    80

    Note: This measure applies to cases where a refund has been held by the ATO. 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.
     

    There has an improvement in the overall strike rate of 4% during 2017–18.

    Table 2.3: Compliance liabilities and collections (Core indicator)

     

    2017–18

    Measure

    GST tax liabilities
    $m

    Total cash
    collection
    $m

    Cash collection
    rate
    %

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

    3,056

    2,822

    67

    Micro businesses

    1,419

    1,301

    56

    Small and medium businesses

    1,058

    975

    71

    Large businesses

    386

    359

    80

    Government

    14

    11

    68

    Not-for-profit organisations

    69

    66

    91

    Other

    110

    110

    97

    Note: Compliance liabilities are the net value of debit and credit amendments from active compliance intervention. Compliance liabilities exclude penalties and interest. 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.
     

    This year we had a total of approximately $187 million in large ‘outlier’ cases (where the GST adjustment greater than $20 million) and in 2016–17 we had approximately $288 million.

    Table 2.4: GST registrations (Core indicator)

    Measure

    2014–15
    %

    2015–16
    %

    2016–17
    %

    2017–18
    %

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

    95.9

    95.4

    94.7

    95.1

    Note: This indicator assess whether we have the right number of registrants in the system compared to another source of information. In this case we are comparing the number of entities that declare business income (in excess of $75,000) in their income tax returns with the number of compulsory registrants. This indicator is reported one year in arrears due to reliance on corresponding income tax data.
    Table 2.5: BAS lodgment (Core indicator)

    Measure

    2014–15
    %

    2015–16
    %

    2016–17
    %

    2017–18
    %

    Total BAS lodged (including yearly)

    89.9

    89.8

    87.6

    87.7

    lodged (monthly)

    93.7

    94.0

    93.2

    93.4

    lodged (quarterly)

    88.3

    88.0

    85.3

    85.4

    Total lodged on time (including yearly)

    78.0

    77.7

    76.4

    76.6

    lodged on time (monthly)

    82.9

    83.2

    83.5

    83.7

    lodged on time (quarterly)

    76.0

    75.3

    73.5

    73.9

    Note: This measure has two components, one which measures the percentage of business activity statements lodged on time, and the second measures the percentage lodged at a given time. The given time will be at 31 December for the mid-year report and 30 June for the annual (full-year) report.
     

    The total lodged on-time and overall BAS percentage has been slowly declining. However, more recently the declining trend has been arrested. We are now seeing a change in response to our strategies.

    Table 2.6: GST returns (Supplementary indicator)

    Measure

    2014–15
    %

    2015–16
    %

    2016–17
    %

    2017–18
    %

    GST returns filed by intermediaries or tax agents

    44.4

    45.8

    45.6

    52.5

    Note: This is an international benchmark measure which indicates the usage of the tax intermediaries or tax agents, or both, for the filing of GST or VAT returns.
     
    Table 2.7: Objections (Supplementary indicator)

    Measure

    2014–15
    No.

    2015–16
    No.

    2016–17
    No.

    2017–18
    No.

    Number of objections

    1,214

    1,150

    859

    842

    Note: 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 four years due to continuing improvements in our early engagement strategies.

    Table 2.8: Objection rate (Supplementary indicator)

    Measure

    2014–15
    %

    2015–16
    %

    2016–17
    %

    2017–18
    %

    Rate

    7.4

    7.9

    5.6

    7.0

    Note: The number of objections received in a year divided by the number of audits with a financial adjustment finalised in the year becomes the objection rate, which can provide an indicator of objection levels and trends over time.
     
    Table 2.9: Litigation cases (Supplementary indicator)

    Measure

    2014–15
    No.

    2015–16
    No.

    2016–17
    No.

    2017–18
    No.

    Number of litigation cases received

    106

    67

    53

    54

    Note: 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.
     

    The number of litigation cases received has remained largely unchanged since 2016–17 and is around half of what we received in 2014–15.

    Table 2.10: Objections to litigation (Supplementary indicator)

    Measure

    2014–16
    No.

    2016–17
    No.

    2017–18
    No.

    Number of objections which result in litigation

    na

    46

    59

    Note: This is an ATO-wide information and assistance services performance measure, with the 2017–18 target being 20 per thousand (2%). It tracks the number of objections that result in litigation. Although higher than the ATO average, GST objection and litigation rates are declining and this number should also decline.
      Last modified: 18 Mar 2019QC 58283