• Schedule D: Budget measure, GST compliance program

    Working together to improve voluntary compliance

    Schedule D provides information related to performance outcomes under the GST administration performance agreement.

    Table 7a: 2010-11 Budget measure compliance results (Years 1-4)

     

    2010–11 Budget

    Year 1

    Year 2

    Year 3

    Year 4

    Quadrants 2010–11 2010–11 2011–12 2011–12 2012–13 2012–13 2013–14 2013–14
    Planned Actual Planned Actual Planned Actual Planned Actual
    $m $m $m $m $m $m $m $m
    1. The detection and reduction of inflated or fabricated GST refund claims $62.6 $65.7 $127.1 $140.4 $166.6 $96.6 $166.6 $192.5
    2 Investigation of systematic or deliberate under-reporting of GST $21.5 $20.7 $62.0 $72.1 $77.0 $69.8 $78.6 $143.9
    3. More direct contact between the ATO and non-lodgers $164.6 $204.9 $213.3 $259.2 $206.2 $283.6 $172.2 $174.7
    Sub-total $248.7 $291.3 $402.4 $471.7 $449.8 $450.1 $417.4 $511.0
    4. More direct contact between the ATO and taxpayers with a GST debt $56.5 $150.8 $86.8 $418.0 $91.0 $406.8 $91.0 $1,148.0
    Table 7b: 2012-13 Budget measure compliance plan (Years 5-6)

    Quadrants

    2012-13 Budget

    Year 5

    Year 6

    2014–15

    2015–16

    Planned

    Planned

    $m

    $m

    1. The detection and reduction of inflated or fabricated GST refund claims

    $136.3

    $136.3

    2 Investigation of systematic or deliberate under-reporting of GST

    $193.4

    $193.4

    3. More direct contact between the ATO and non-lodgers

    $127.8

    $107.5

    Sub-total

    $457.4

    $437.1

    4. More direct contact between the ATO and taxpayers with a GST debt

    $52.1

    $39.2

     

    This table details on the compliance results for the Budget measure called ‘Working together to improve voluntary compliance’ as required under the GST administration performance agreement Schedule D. It provides both actual and planned figures since the commencement of the program in 2010-11through to 2015-16 and is split by the four quadrants.  These are: (1) the detection and reduction of inflated or fabricated GST refund claims, (2) investigation of systematic or deliberate under-reporting of GST, (3) more direct contact between the ATO and non-lodgers, and (4) more direct contact between the ATO and taxpayers with a GST debt.

    Notes

    • Totals may differ from the sum of components due to rounding.
    • Quadrants 1-3: end year plan and actual figures are represented in liabilities raised as a result of audit activity.
    • Quadrant 4: end plan figures are represented in cash collections as a result of debt collection activity.

    Before 2013–14, the quadrants were described as:

    1. Working together in defending our citizens’ tax system against organised attacks and fraud
    2. Promoting a level playing field for Australian business and investors
    3. Supporting citizens in their tax system
    4. Paying your fair share of tax – a hallmark of good citizenship
    Figure 2: ‘Working together to improve voluntary compliance’ program workloads

    Quadrant

    Interaction type

    2013–14 results

    Four year results

    Four year target

    1

    Suspect refund cases

    9,232

    35,282

    42,250

    2

    Incorrect reporting cases

    2,168

    4,333(1)

    Nil

    Disengaged property developer cases

    1,543

    3,766

    966

    Serious evasion cases

    168

    1,203

    2,037

    3

    Lodgment contacts

    1,049,602

    6,165,070(2)

    8,463,736

    - Strong enforcement cases

    67,209

    306,268

    56,536

    4

    Debt cases referred to external debt collection agency

    121,457

    649,597(3)

    800,000

    Aged debt cases

    30,642

    121,465

    102,120

    Notes:

    1 Incorrect reporting was introduced into the program through a change request.

    2 Impacted by shift from pre-emptive contacts to enforcement cases.

    3 Reduction resulted from matching the referrals to the number of suitable cases.

    The program has been extremely effective in meeting its revenue commitments which were exceeded in each year of the program to date. An estimated $3.17 billion in additional GST has been collected in the first four years of the program, compared to the total six-year commitment of $2.33 billion.

    We are continuing to see improvements in a number of the program’s effectiveness measures and with additional funding in the 2012–13 Budget (extending the program funding for another two years to 30 June 2016), we are confident results and outcomes will be favourable.

      Last modified: 22 Dec 2014QC 43515