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  • Performance report

    This section of the report provides information on our performance outcomes under the GST Administration Performance Agreement (1 July 2017 - 30 June 2020). Data for prior years is published on ato.gov.au.

    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. Note that figures may vary slightly due to rounding.

    Maintain compliance

    Table 1.1: Revenue outcome (Core indicator)

    Measure

    2014–15
    $b

    2015–16
    $b

    2016–17
    $b

    2017–18
    $b

    2018–19
    $b

    Total GST revenue (cash)

    54.3

    57.4

    59.8

    63.1

    65.2

    GST revenue Home Affairs cash (net)

    3.4

    3.5

    3.5

    3.9

    4.2

    Note: The total GST revenue amount excludes non-GIC penalties.

    Table 1.2: GST debt (Core indicator)

    Measure

    2014–15
    $b

    2015–16
    $b

    2016–17
    $b

    2017–18
    $b

    2018–19
    $b

    Total GST debt outstanding

    5.0

    5.0

    5.6

    5.5

    5.7

    Collectable GST debt

    3.5

    3.4

    3.8

    4.0

    4.3

    Table 1.3: GST debt (Core indicator)

    Measure

    2014–15
    %

    2015–16
    %

    2016–17
    %

    2017–18
    %

    2018–19
    %

    GST debt collection rate

    6.4

    5.9

    6.4

    6.3

    6.6

    Note: This measure is computed using the estimated GST collectable debt amount as a percentage of 12 months GST revenue collections.

    In 2018–19, the GST collection rate increased slightly from 6.3% to 6.6%.

    Table 1.4: GST debt (Supplementary indicator)

    Measure

    2014–15

    2015–16

    2016–17

    2017–18

    2018–19

    GST debt non-pursuit ($m)

    1,391.8

    1,396.3

    1,149.6

    1,480.7

    1,346.5

    GST debt non-pursuit (%)

    27.2

    27.9

    23.1

    26.8

    23.8

    Note: 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). The GST debt non-pursuit percentage is applied to total amounts with a write-off posting to provide an estimate of GST debt non-pursuit.

    The overall value of non-pursuits decreased in 2018–19.

    Table 1.5: GST debt ratio (Supplementary indicator)

    Measure

    2014–15
    %

    2015–16
    %

    2016–17
    %

    2017–18
    %

    2018–19
    %

    Ratio of GST non-pursuit to GST revenue

    N/A

    N/A

    1.9

    2.3

    2.1

    Note: This ratio compares GST debt non-pursuit to GST revenue and is calculated as GST debt non-pursuit divided by Total GST revenue (cash).

    Table 1.6: GST debt on-time (Supplementary indicator)

    Measure

    2014–15
    %

    2015–16
    %

    2016–17
    %

    2017–18
    %

    2018–19
    %

    GST on-time payment rate

    N/A

    N/A

    88.2

    88.4

    88.7

    Note: This ratio measures the compliance level for GST payments and is calculated as the number of GST payments paid on time divided by the total number of GST payments due. This international benchmark measure will be used to evaluate the effectiveness of our on-time payment strategies (e.g. SMS reminders are sent to clients who were expected to pay late or not at all).

    In 2018–19, the results improved slightly, indicating the effectiveness of our early engagement strategies.

    Table 1.7: Ageing of GST debt cases (Supplementary indicator)

    Measure

    2014–15
    No.

    2015–16
    No.

    2016–17
    No.

    2017–18
    No.

    2018–19
    No.

    Total number of cases

    304,414

    307,464

    275,076

    312,057

    343,434

    GST debt cases aged < 29 days

    41,979

    45,808

    30,821

    33,926

    37,903

    GST debt cases aged 30–59 days

    72,535

    75,147

    72,899

    86,451

    86,655

    GST debt cases aged 60–89 days

    10,443

    10,140

    9,604

    9,901

    10,125

    GST debt cases aged 90 days to one year

    92,584

    95,177

    93,557

    112,450

    122,678

    GST debt cases aged > one year

    86,873

    81,192

    68,195

    69,329

    86,073

    Table 1.8: Ageing of GST debt (value) (Supplementary indicator)

    Measure

    2014–15
    $m

    2015–16
    $m

    2016–17
    $m

    2017–18
    $m

    2018–19 $m

    GST debt cases – total value

    3,472.90

    3,382.50

    3,838.10

    3,999.72

    4,269.52

    GST debt cases aged <29 days

    461.90

    428.20

    409.10

    441.10

    426.31

    GST debt cases aged 30–59 days

    446.20

    462.40

    553.00

    558.88

    564.31

    GST debt cases aged 60–89 days

    105.90

    120.60

    163.10

    109.06

    129.13

    GST debt cases aged 90 days to one year

    1,103.70

    1,103.40

    1.251.60

    1,406.17

    1,510.78

    GST debt cases aged > one year

    1,355.20

    1,267.80

    1,461.30

    1,484.51

    1,638.98

    Note: This measure is based on cases in the debt case management system with a GST registration. The age of the case is determined by the earliest period in that any component of the debt can be attributed. The age of debt profile is based on the date of referral of the debt to the ATO’s debt and lodgment case management system.

    In 2018–19, the value of cases greater than 60 days has increased by more than 18%.

    Table 1.9 Trend over time in GST gap* (Supplementary indicator)

    Measure

    2014–15
    $b

    2015–16
    $b

    2016–17
    $b

    2017–18
    $b

    2018–19
    $b

    Estimated GST gap (including debt)

    4.1

    4.2

    5.2

    4.7

    5.0

    Table 1.10: Trend over time in GST gap* (Supplementary indicator)

    Measure

    2014–15
    %

    2015–16
    %

    2016–17
    %

    2017–18
    %

    2018–19
    %

    Estimated GST gap (excluding debt) – percentage of accrual revenue

    5.5

    6.3

    7.2

    6.2

    6.3

    Table 1.11: Trend over time in GST gap* (Supplementary indicator)

    Measure

    2014–15
    %

    2015–16
    %

    2016–17
    %

    2017–18
    %

    2018–19
    %

    Estimated GST gap (including debt) – percentage of accrual revenue

    7.3

    7.1

    8.2

    7.2

    7.3

    Note: This measure estimates the dollar value of theoretical GST losses through non-reporting of GST by businesses and individuals through a failure to register or failure to lodge returns, net under-reporting of GST obligations, or over-claiming of GST refunds.

    *GST gap data remains one year in arrears due to the timing of the National Accounts data releases. The data for the reporting period 2018–19 relates to gap estimates in 2017–18.

    Estimates of the GST gap for 2014–18 are updated as business activity statements 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.

    Table 1.12: Cross-border services and products (Supplementary indicator)

    Measure

    2017–18
    $m

    2018–19
    $m

    Total $m

    Imported services and digital products

    345

    383

    728

    Low value imported goods

    N/A

    348

    348

    Total

    345

    731

    1,076

    Note: We revised the 2017–18 net revenue figure for the imported services and digital products measure from $272 million to $345 million due to some clients lodging late and others identified as lodging in the GST full system (i.e. through a business activity statement).

    In respect of GST on sales of imported services and digital products, total net GST revenue of $728 million exceeded initial projections of $350 million over the first two years.

    The net GST revenue figure for low value imported goods in 2018–19 was $348 million, which exceeds the projection of $70 million in the first year.

    There are approximately 1,700 offshore businesses registered with the ATO for GST, across both cross-border measures.

    Compliance outcomes

    Table 1.13: Strike rate by market segment (Core indicator)

    Measure

    2016–17
    %

    2017–18
    %

    2018–19
    %

    Overall strike rate

    69

    69

    62

    Micro businesses

    70

    68

    61

    Small and medium businesses

    72

    74

    77

    Large businesses

    51

    52

    53

    Government

    67

    37

    63

    Not-for-profit organisations

    69

    78

    85

    Other

    31

    72

    25

    Note: The strike rate (percentage of cases leading to re-assessment) is an Organisation for Economic Co-operation and Development (OECD) measure that can indicate the effectiveness of case selection in detecting ‘correct reporting’.

    In late 2018–19, a change in the strike rate methodology resulted in the inclusion of cases which were previously excluded. This has resulted in an overall decreased strike rate due to the larger population.

    Table 1.14: Refund integrity strike rate by market segment (Core indicator)

    Measure

    2016–17
    %

    2017–18
    %

    2018–19
    %

    Overall strike rate

    64

    68

    77

    Micro businesses

    65

    70

    79

    Small and medium businesses

    51

    54

    63

    Large businesses

    40

    49

    53

    Government

    57

    29

    29

    Not-for-profit organisations

    60

    65

    73

    Other

    87

    80

    90

    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.

    The overall strike rate improved by 9% during 2018–19. All markets showed an increase except government, which remained the same as 2017–18.

    Table 1.15: Compliance liabilities and collections, 2018–19 (Core indicator)

    Measure

    GST tax liabilities
    $m

    Total cash collection
    $m

    Cash collection rate%

    Total compliance liabilities raised, cash collection, and cash collection rate by client experience

    3,163.8

    2,573.3

    68.2

    Small business

    1,575.7

    1,247.4

    61.4

    Privately owned and wealthy groups

    1,056.8

    844.4

    69.2

    Public and multinational businesses

    436.2

    399.2

    88.0

    Not-for-profits

    79.5

    67.5

    80.0

    Superannuation

    15.6

    14.8

    90.4

    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 as a percentage of current year liabilities.

    This measure was previously by market segment; it is now by client experience.

    Table 1.16: GST registrations (Core indicator)

    Measure

    2014–15
    %

    2015–16
    %

    2016–17
    %

    2017–18
    %

    2018–19
    %

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

    95.9

    95.4

    94.7

    95.1

    95.1

    Note: This indicator assesses 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 1.17: BAS lodgment (Core indicator)

    Measure

    2014–15
    %

    2015–16
    %

    2016–17
    %

    2017–18
    %

    2018–19
    %

    Total BAS lodged (including yearly)

    89.9

    89.8

    87.6

    87.7

    87.7

    Lodged (monthly)

    93.7

    94.0

    93.2

    93.4

    93.0

    Lodged (quarterly)

    88.3

    88.0

    85.3

    85.4

    85.6

    Total lodged on time (including yearly)

    78.0

    77.7

    76.4

    76.6

    76.0

    Lodged on time (monthly)

    82.9

    83.2

    83.5

    83.7

    83.4

    Lodged on time (quarterly)

    76.0

    75.3

    73.5

    73.9

    73.1

    Note: This measure has two components – one that measures the percentage of business activity statements lodged on time, and one that measures the percentage lodged at a given time. The given time will be 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 had been slowly declining. However, more recently the declining trend has been arrested. We are now seeing a change in response to our strategies.

    Table 1.18: GST returns (Supplementary indicator)

    Measure

    2014–15
    %

    2015–16
    %

    2016–17
    %

    2017–18
    %

    2018–19
    %

    GST returns filed by intermediaries or tax agents

    44.4

    45.8

    45.6

    52.5

    53.7

    Note: This is an international benchmark measure that indicates the usage of the tax intermediaries or tax agents, or both, for the filing of GST or value add tax returns.

    Table 1.19: Objections (Supplementary indicator)

    Measure

    2014–15
    No.

    2015–16
    No.

    2016–17
    No.

    2017–18
    No.

    2018–19
    No.

    Number of objection cases created

    N/A

    1,031

    1,036

    906

    643

    Note: A range of factors can impact on the number of objection cases created, including improvements in the strike rate (or improved risk identification).

    This measure was previously listed as objection receipts and used the date the objection was received into the office. Previous years’ data has been updated to case creation date.

    The number of objection cases created has declined over the last three years due to continuing improvements in our early engagement strategies.

    Table 1.20: Objection rate (Supplementary indicator)

    Measure

    2014–15 No.

    2015–16
    No.

    2016–17
    No.

    2017–18
    No.

    2018–19
    No.

    Audit to objection rate

    N/A

    71 per thousand

    68 per thousand

    76 per thousand

    52 per thousand

    Note: Calculated as the number of objection cases created throughout the period, divided by the number of audits with a financial adjustment in the same period. Previous years’ data has been updated and is now represented as a number per thousand of audits with a financial adjustment (as per the corporate methodology).

    This measure was previously used to provide an indication as to the number of audits that result in objections. However, this did not provide a reliable measure of the conversion rate, due to the significant timing differences between the finalisation of an audit and the lodgment and/or finalisation of an objection. Furthermore, a significant portion of the objections received by review and dispute resolution are client-initiated objections (i.e. they do not relate to an audit-based decision). Work is currently underway to determine if there is a more reliable measurement of the conversion of audits to objections.

    Table 1.21: Litigation cases (Supplementary indicator)

    Measure

    2014–15
    No.

    2015–16
    No.

    2016–17
    No.

    2017–18
    No.

    2018–19
    No.

    Number of new Part IVC First Instance cases created

    N/A

    54

    47

    50

    64

    Note: Part IVC First Instance cases are those where the taxpayer lodges an AAT or Federal Court application when they are dissatisfied with the Commissioner’s objection decision. Previous years’ data has been updated to include only first instance matters.

    These litigation cases may also be a result of objections to self-assessments.

    The number of new Part IVC First Instance litigation cases created has increased on the 2017–18 year. This increase can be attributed to more cases containing precious metal issues, penalty issues, and substantiation issues arising from GST evasion audits.

    Table 1.22: Objections to litigation (Supplementary indicator)

    Measure

    2014–15
    No.

    2015–16
    No.

    2016–17
    No.

    2017–18
    No.

    2018–19
    No.

    Proportion of objections to new litigation cases  

    N/A

    39 per thousand

    50 per thousand

    65 per thousand

    108 per thousand

    Note: Calculated as the number of First Instance Part IVC matters lodged throughout the period, divided by the number of objections resolved for the same period. It is represented as a number per thousand of objections resolved. This is based on the corporately-endorsed methodology.  

    This may be an indicator that earlier dispute resolution strategies are resolving disputes before they proceed to litigation.

      Last modified: 01 Jul 2020QC 61031