• 3.2 Which of these indicators will paint a defensible picture?

    • A suite of potential indicators is necessary, because a single indicator will not provide sufficient information to assess the overall effectiveness of your compliance strategies.
    • Ensure the indicators provide information from the perspective of the target groups, surrounding groups and the broader population, to assist in providing a balanced evaluation of the impacts of your compliance strategies.
    • Ensure each success goal can be measured and has a corresponding indicator or suite of indicators.
    • Some indicators may apply to more than one success goal - this represents a cost saving by reducing the number of indicators that need to be evaluated.
    • Ensure the indicators provide information that reflects immediate effects (less than two years), intermediate effects (two to three years) or long-term effects (more than three years) as we are looking for sustained, positive changes in compliance behaviour and community confidence.
    • Consider whether the indicators collectively are capable of showing that the success goals are being met - if so, the picture of effectiveness will be defensible.
    • Using indicators of efficiency (outputs) in the early stages helps to ensure that implementation of the compliance strategies is on track and to enable any finetuning of the activities essential to achieving your desired outcomes.
    • Keep a record of all indicators, including those that are useful but not measurable at the time, so that the necessary measurement infrastructure can be put in place later if required.
    • Resources are required to monitor, analyse and evaluate each indicator.
    • For practical reasons, there should be a limit to the number of indicators. If there are too many, there is an increased likelihood of failing to track and adequately assess the indicators.

    Example of an indicator that relates to multiple success goals

    The trend in the level of amendments initiated by taxpayers (rather than as a result of our interventions) is an indicator that can apply to several success goals, including:

    • improved awareness
    • improved understanding
    • sustained improvements in voluntary compliance
    • tax practitioners encouraging their clients to voluntarily comply.
    Last modified: 19 Jan 2015QC 21200