Schedule C of the Performance Agreement deals with monitoring and review arrangements. It is designed to ensure appropriate alignment of ATO parliamentary reporting responsibilities and reporting responsibilities under the agreement. It also provides an opportunity for the ATO to report information on an ad hoc basis; for example, ATO community surveys.
Governance arrangements with federal, state and territory governments
The ATO’s responsibilities and formal accountabilities under the framework established by the Council of Australian Governments (COAG) include specific reporting on GST administration.
We report through governance forums, escalating through to the Council on Federal Financial Relations (CFFR). The accountability mechanisms and forums are depicted in Figure 11.
To provide assurance to the CFFR that the ATO is achieving the agreed performance outcomes, the ATO reports to GSTAS (through GPAS) at least twice yearly, in the form of annual and mid-year reports. In addition, the ATO provides a brief quarterly overview for the September and March quarters.
Figure 11: Accountability framework
Governance arrangements within the ATO
As the GST Product Owner, the Deputy Commissioner, Small Business has overall responsibility for the administration of the GST product across the ATO.
The ATO GST Product Committee (GSTPC) provides the highest level of GST product governance via committee. It oversees the strategic direction, effectiveness, efficiency and sustainability of the GST product across the ATO as set out in the Performance Agreement.
The GSTPC is chaired by the Deputy Commissioner, Small Business, and its members include:
- Deputy Commissioners from each business line involved in administering the GST product
- Assistant Commissioner, GST Program, Small Business
- Assistant Commissioner, Corporate Budget and Financial Reporting, ATO Finance.
The GST Program branch provides leadership, governance and assurance to ensure the ATO delivers on the Performance Agreement. This includes a focus on the whole of GST product risk, strategy, capability and resource management.
Audit arrangements
The ATO has arranged for the Australian National Audit Office (ANAO) to conduct an annual special purpose audit of GST costs and the systems for control of GST costs. The ATO will provide a copy of the audit report to GSTAS (through GPAS).
Client and community confidence
Throughout 2021–22, our focus on building trust and community confidence has continued. Regular research has been conducted to measure the level of confidence the general community and clients who have recently interacted with us have in the ATO. A score of 50 indicates a neutral response, with higher numbers indicating a favourable opinion (and lower numbers representing less favourable views). Our target is 65.
The overall result for client and community confidence for 2021–22 was 66 (compared to 68 in 2020–21).
GST complaints
The ATO continues to focus on improving the experience of our clients.
Complaints provide valuable insights that help to enhance our services. In 2021–22, we received 264 complaints relating to GST, compared to 61 in 2020–21. Of the 264 complaints, 179 were associated with Operation Protego.
The majority of complaints were in relation to:
- processing and timeliness of GST audits
- the outcome of GST audits being either disputed by the clients, or requesting to have further substantiation considered
- claims of hardship relating to financial institutions that have frozen suspected fraudulent amounts in bank accounts.
Complaints continue to represent a very small proportion of our interactions with clients. Our service commitment target of 85% was exceeded, with a complaint finalisation result of 88% resolved in 15 business days or within the date negotiated with the client.