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  • Schedule A: Performance outcomes

    Table 1 - Maintain compliance

    Key outcome

    Measure

    2012–13

    2013–14

    2014–15

    Core indicator

     

     

     

     

    Revenue outcome

    GST revenue (cash)

     

     

     

     

    Total cash

    $48.1b

    $51.1b

    $54.3b

     

    Customs cash (net)

    $3.0b

    $3.2b

    $3.4b

    Collections continued to grow during 2014–15 at a rate similar to 2013–14, and are consistent with growth in consumption and dwelling investment.

    GST revenue outcome graph 
Decorative graph: provides a visual representation of the GST revenue outcome figures already provided for the past three financial years.

    Key outcome

    Measure

    2012–13

    2013–14

    2014–15

    Core indicator

     

     

     

     

    GST debt

    GST debt outstanding

     

     

     

     

    Total

    $4.8b

    $5.1b

    $5.0b

     

    Collectable

    $3.6b

    $3.6b

    $3.5b

     

    GST debt collection rate

    7.6%

    7.0%

    6.4%

    GST collectable debt decreased by 2.9% (refer to Managing debt section for more details).

    Collectable debt is debt that is not subject to objection or appeal or to some form of insolvency administration. The GST debt collection rate is the estimated collectable GST debt as a percentage of GST revenue. The measure uses the estimated GST collectable debt amount as a percentage of 12 months GST revenue collections.

    GST debt outcome graph
Decorative graph: provides a visual representation of the GST total and collectable debt figures already provided for the past three financial years.

    Key outcome

    Measure

    2012–13

    2013–14

    2014–15

    Supplementary indicator

    Interest paid on delayed refunds

    $4.7m

    $2.6m

    $3.2m

    We note an increase in the interest paid on delayed refunds this year. We introduced a new workflow management system that contributed to delays between July and September 2014.

    Key outcome

    Measure

    2012–13

    2013–14

    2014–15

    Supplementary indicator

    GST debt non-pursuit

     

     

     

     

    Value $

    $1,455.8m

    $916.7m

    $1,391.8m

     

    Percentage

    28.7%

    19.0%

    27.2%

    The previously published preliminary figure for 2013–14 ($918.1 million) has been updated to the final figure for 2013–14 endorsed by the ANAO ($916.7 million).

    The increase this year was due to our focus on dealing with GST non-pursuit debts in a timelier manner. In 2014–15, the ratio of GST non-pursuits to GST revenue was 2.6%, with 1.7% irrecoverable at law and 0.9% uneconomical to pursue.

    Key outcome

    Measure

    2012–13

    2013–14

    2014–15

    Supplementary indicator

    Ageing of GST debt – number of cases

     

     

     

     

    <30 days

    41,146

    39,813

    41,979

     

    <60 days

    75,168

    77,995

    72,535

     

    <90 days

    12,988

    10,565

    10,443

     

    >90 days

    192,770

    194,762

    179,457

     

    Total

    322,072

    323,135

    304,414

    Ageing of GST debt - number of cases diagram
Decorative graph: provides a visual representation of the ageing of GST debt by number of cases for 2014–15 - figures already provided.

    Key outcome

    Measure

    2012–13

    2013–14

    2014–15

    Supplementary indicator

    Ageing of GST debt – value

     

     

     

     

    <30 days

    $496.3m

    $405.4m

    $461.91m

     

    <60 days

    $511.0m

    $531.7m

    $446.2m

     

    <90 days

    $141.1m

    $133.9m

    $105.9m

     

    >90 days

    $2.4b

    $2.5b

    $2.5b

     

    Total

    $3.6b

    $3.6b

    $3.5b

    Analysis of attitudinal and behavioural research on the prevention of aged debt identified opportunities to improve how we prevent debt ageing, including addressing limited awareness of tax debt and businesses’ level of financial management skills. It showed that we play a significant role in the prevention and management of tax debt and we should focus on providing early support wherever possible. To this end, we are focusing on making it as easy as possible for businesses to understand and pay their obligations. For the small number of businesses that choose not to pay their obligations, we are taking timelier and stronger action to prevent them from gaining an unfair financial advantage over the majority who do.

    Note: In previous reports, there were slight variations between total GST collectable debt and total ‘Ageing of GST debt - value’ due to different methodologies. These methodologies have now been aligned and updated figures differ from those previously published.

    Ageing of GST debt-value diagram
Decorative graph: provides a visual representation of the ageing of GST debt by their value for 2014–15 - figures already provided.

    Key outcome

    Measure

    2011–12

    2012–13

    2013–14

    Core indicator

     

     

     

     

    Trend over time in GST gap

     

     

     

     

     

    Estimated GST gap

    $3.90b

    $3.69b

    $3.59b

     

    Excluding debt - percentage of accrual revenue

    6.2%

    5.6%

    4.9%

     

    Including debt - percentage of accrual revenue

    7.7%

    7.1%

    6.5%

    The percentages of accrual revenue published last year were correct; however, the dollar figures for estimated GST gap contained a transpositional error as the published figures excluded debt. This has now been corrected.

    Results for 2013–14 show an improvement on the relatively stable trend in the GST Gap experienced between the 2011–2013 years.

    Notes:

    • GST gap data is provided one year in arrears due to the timing of national accounts data releases.
    • Estimates of the GST gap for 2011–12 and 2012–13 have been updated as business activity statements (BAS) 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 differences in prior year estimates to what was previously published.
    Table 2 - Compliance outcomes

    Key outcome

    Measure

    2012–13

    2013–14

    2014–15

    Core indicator

     

     

     

     

    Compliance outcomes

    Strike rate

    70%

    75%

    75%

    Note: Strike rate figures exclude business activity statement (BAS) refund compliance activities.

    Strike rate graph
Decorative graph: provides a visual representation of the GST strike rate figures already provided for the past three financial years.

    Key outcome

    Measure

    2012–13

    2013–14

    2014–15

    Core indicator

     

     

     

     

    Compliance outcomes

    Compliance liabilities raised

    $2.3b

    $3.4b

    $2.6b

    Compliance liabilities raised from direct activities reduced by 22% this year. However, it should be noted that as identified in last year’s GST administration performance report, the 2013–14 results included significant one-off cases totalling $915 million. In 2014–15, there was one case worth $300 million. If these ‘outlier’ cases were removed from each year, compliance liabilities raised this year are more comparable to last year.

    Notes:

    • The dollar amount of penalties (including general interest charge and shortfall interest charge) are not included.
    • Flow on results (indirect revenue outcomes) from GST-related Budget measures are not included in this calculation.

    Compliance liabilities raised graph
Decorative graph: provides a visual representation of the GST compliance liabilities raised figures already provided for the past three financial years.

    Key outcome

    Measure

    2012–13

    2013–14

    2014–15

    Core indicator

     

     

     

     

    Compliance outcomes

    Voluntary disclosure large market

     

     

     

     

    Number

    223

    196

    176

     

    Value $

    $234m

    $293m

    $221m

    Due to the improved capability of large public companies to better detect errors prior to BAS lodgment, we have received less large market voluntary disclosures relating to integrity of business systems in 2014–15 compared to the two previous years.

    Voluntary disclosure large market graph
Decorative graph: provides a visual representation of the GST voluntary disclosure in the large market figures already provided for the past three financial years.

    Key outcome

    Measure

    2010-11

    2011–12

    2012–13

    2013–14

    Core indicator

     

     

     

     

     

    Compliance outcomes

    Percentage of compulsory GST registrations compared with potential GST registrations based on income tax returns data

    95.9%

    96.0%

    96.1%

    95.9%

    Performance has remained consistent over the last four years. The indicator compares the number of entities that declare business income in excess of $75,000 in their income tax returns with the number of compulsory GST registrants. The ratio measures the level of community participation in the GST system. Performance against this indicator is reported one year in arrears due to reliance on corresponding income tax data.

    Percentage of compulsory GST registrations compared with potential GST registrations based on income tax returns data graph 
Decorative graph: provides a visual representation of the GST Percentage of compulsory GST registrations compared with potential GST registrations based on income tax returns data graph figures already provided for the past three financial years.

    Key outcome

    Measure

    2012–13

    2013–14

    2014–15

    Core indicator

     

     

     

     

    Compliance outcomes

    BAS lodgment

     

     

     

     

    % lodged

     

     

     

     

    - monthly

    91.3%

    91.5%

    93.7%

     

    - quarterly

    87.3%

    87.5%

    88.3%

     

    % lodged on time

     

     

     

     

    - monthly

    80.0%

    80.5%

    82.9%

     

    - quarterly

    75.8%

    76.1%

    76.0%

    Improved effectiveness of lodgment compliance action has contributed to improvements in lodgment performance over the past three years.

    BAS lodgment graph
Decorative graph: provides a visual representation of the BAS lodgment figures already provided for the past three financial years by lodged monthly, lodged quarterly, lodged on time monthly, and lodged on time quarterly.

    Key outcome

    Measure

    2012–13

    2013–14

    2014–15

    Supplementary indicator

    Audit coverage

     

     

     

     

    International benchmark (2005)

    Average 5.85%, range 0.6% to 27.7%

    50.0%

    38.5%

    22.8%

    As we shifted our strategies from lodgment compliance to firmer action, we would expect to see audit coverage reduce over time.

    Key outcome

    Measure

    2012–13

    2013–14

    2014–15

    Supplementary indicator

    Objection rate

    9.77%

    8.57%

    7.43%

    The previously published objection rates for 2012–13 (of 10.80%) and 2013–14 (of 7.7%) have been amended as we identified an error in our reporting methodology.

    Table 3 - Cost-effective administration

    Key outcome

    Measure

    2012–13

    2013–14

    2014–15

    Core indicator

     

     

     

     

    Cost effectiveness

    Cost as a % of revenue

     

     

     

     

    International benchmark (2007)

    Average 1.22, range 0.82 to 1.53

    1.47%

    1.35%

    1.25%

    The cost of administration as a percentage of revenue has reduced again this year to 1.25%. So in 2014–15 it cost $1.25 to collect every $100 in GST. The lower cost of GST administration combined with an increase in GST revenue collected has reduced the overall ratio in 2014–15.

    Cost as a percentage of revenue graph
Decorative graph: provides a visual representation of the cost as a percentage of revenue figures already provided for the past three financial years.

    Key outcome

    Measure

    2012–13

    2013–14

    2014–15

    Core indicator

     

     

     

     

    Cost effectiveness

    Cost per registrant

     

     

     

     

    International benchmark (2007)

    Average $410, range $157 to $527

    $262

    $261

    $259

    The cost per registrant is $259. The variance on last year is predominately due to a decrease in the cost of GST administration.

    The calculation is based on total administration costs divided by the total registered active GST client base. Changes to either variable can affect the cost per registrant. The GST Voluntary Compliance Program - ‘Working together to improve voluntary compliance’ additional funding in the years 2010–11 to 2014–15 increased GST administration costs and affected the cost per registrant over the past five years.

    Cost per registrant graph
Decorative graph: provides a visual representation of the cost per registrant figures already provided for the past three financial years.

    Key outcome

    Measure

    2012–13

    2013–14

    2014–15

    Core indicator

     

     

     

     

    Operational and cost management

    Variation of GST administration costs

     

     

     

     

    from agreed estimate

    –1.6%

    1.2%

    1.1%

     

    total admin estimate

    $694.4m

    $698.6m

    $688.5m

    The GST administration cost preliminary end-of-year result is within 1.1% of the original estimate. The lower cost from the agreed estimate was the result of workforce adjustments across the ATO to manage the budget in line with the Australian Public Service agenda of improving productivity and reducing costs.

    Key outcome

    Measure

    2012–13

    2013–14

    2014–15

    Core indicator

     

     

     

     

    Operational and cost management

    Compliance costs as a % of total admin costs

    41.8%

    44.8%

    43.3%

    This reflects our improved active compliance techniques, compliance intelligence and risk management activities.

    Compliance costs as a percentage of total admin costs graph
Decorative graph: provides a visual representation of compliance costs as percentage of total administration cost figures already provided for the past three financial years.

    Key outcome

    Measure

    2012–13

    2013–14

    2014–15

    Supplementary indicators

    Electronic activity statements – finalised in 12 business days

    99%

    99.8%

    99.7%

    Objections to assessments – finalised in 56 calendar days of receiving all necessary information

    97%

    98%

    95%

    Written technical advice

     

     

     

    - taxpayer requests actioned in 28 calendar days

    93%

    93%

    92%

    - private rulings are finalised in 28 calendar days of receiving all necessary information

    97%

    95%

    93%

    Despite a slight drop in 2014–15 results, we have still exceeded our commitment to the community to finalise 80% of private rulings within 28 days of receipt of all information.

    Telephone general enquiry service – general calls answered within five minutes

    81%

    79%

    87%

    Business activity lodgment method – % of BAS lodged electronically

     

     

     

    - overall

    58.9%

    61.6%

    67.6%

    - monthly remitters

    54.7%

    58.5%

    64.7%

    - quarterly remitters

    59.3%

    62.0%

    68.1%

    - annual remitters

    67.4%

    67.0%

    67.8%

    It is noted that the number of BAS lodged electronically has increased over the past few years, with 58.9% lodged electronically in 2012–13 compared to 67.6% lodged electronically this year.

    Quality of technical advice - % of cases that passed

    100%

    94%

    94%

    Note: A new ATO quality model was introduced in July 2014. Under the new model there is no pass or fail grading applied to cases. Assessors are required to ‘stand in the shoes’ of taxpayers and look at cases from an ‘end to end’ perspective, looking for opportunities to improve the client experience. This model focuses on developing a culture of continuous improvement across the ATO. Cases are assessed against four criteria: customer service, accountability, accuracy and performance.

    Australian resident ABR registrations – finalised in 20 business days

    90%

    99%

    97%

    Table 4 - Department of Immigration and Border Protection (formerly known as Australian Customs and Border Protection Service)

    Key outcome

    Measure

    2012–13

    2013–14

    2014–15

    Management of GST revenue collection

    GST liability assessed

    $26.00b

    $27.31b

    $28.21b

    GST collected

    $3.15b

    $3.36b

    $3.53b

    Maintain compliance

    Costs of import and export compliance

    $32.7m

    $31.5m

    $32.8m

     

    The item ‘Active compliance costs’ for 2012–13 has been recast to include tourist refund scheme (TRS) costs as well as costs of import and export compliance, in accordance with GST Administration Performance Agreement (2014). Previously, TRS costs had been omitted. This also affects the compliance yield calculations.

    DIBP pre-clearance intervention and post-transaction verification functions are key treatments for a wide range of border risks, including revenue leakage. Revenue leakage can occur through undervaluation, misclassification and non-declaration of goods, and false claims for GST exemptions, preferential treatment under free trade agreements and duty refunds and concessions.

     

    Compliance coverage – imports

    6.3%

    8.8%

    13.08%

     

    Compliance coverage – exports

    2.2%

    0.8%

    0.28%

     

    DIBP previously identified a data-integrity issue that involved the unintended compounding of customs value (CVAL) in the compliance coverage figure. DIBP rectified that compounding issue from financial year 2012–13 but has no capacity to correct earlier financial year data. Accordingly, it is not meaningful to compare compliance coverage in 2012–13 and 2013–14 with coverage figures in earlier financial years.

     

    Audit coverage – tourist refund scheme

    100%

    100%

    100%

     

    Tourist refund scheme claims rejected

    3.1%

    3.6%

    3.9%

     

    GST adjustments – underpaid GST revenue

    $151.5m

    $80.1m

    $130.1m

     

    For the financial year 2014–15, compliance activities identified a total of $130.1 million in GST understatements. This is an increase of 62% on the previous year. However, this can be attributed to a voluntary disclosure of $52.1 million.

     

    GST adjustments – rejected tourist refund scheme claims

    $3.4m

    $3.4m

    $4.9m

     

    Total GST adjustments

    $154.9m

    $83.5m

    $134.9m

     

    Compliance yield

    4.73:1

    2.65:1

    4.22:1

    Cost-effective administration

    Costs of import processing

    $20.9m

    $22.7m

    $21.9m

     

    Costs of export processing

    $0.3m

    $0.3m

    $0.3m

     

    Costs of import and export compliance

    $19.4m

    $18.6m

    $18.5m

     

    Costs of administering the tourist refund scheme

    $13.4m

    $12.9m

    $14.4m

     

    Total costs

    $54.0m

    $54.5m

    $55.0m

     

    Import declarations processed

    3.6m

    3.8m

    4.0m

     

    Export declarations processed

    1.2m

    1.4m

    1.4m

     

    Total tourist refund scheme claims processed

    581,317

    671,615

    746,811

     

    Total costs as a % of total GST liability assessed

    0.2%

    0.2%

    0.2%

     

    Total costs as a % of total GST collected

    1.7%

    1.6%

    1.6%

    Notes: 2014–15 values are preliminary and subject to revision and finalisation of the 2014–15 financial statements and Australian National Audit Office (ANAO) special purpose audit review. Final values for the full year will be reported in the DIBP 2014–15 Annual Report.

      Last modified: 14 Dec 2015QC 47462