GST administration performance
Reporting arrangements
C1 – To provide assurance to the CFFR that the ATO is achieving the agreed performance outcomes, the ATO will report to GSTAS (through GPAS) at least twice yearly. In addition, the ATO will provide a brief quarterly overview for the September and March quarters.
C2 – The first reporting event will occur in the first half of the financial year and the ATO will provide a report on its performance in administering the GST in relation to the immediate prior year. The ATO will also report on the actual full year costs of administering the GST in the immediate prior year, together with any recommendations on ex-post adjustments that may be necessary.
C3 – The second reporting event will occur during the second half of the financial year, and the ATO will provide a report on its performance in administering the GST during the first half of the current financial year. The ATO will also provide a strategic intent statement, in accordance with the estimate formulation process set out in Note 4 to Schedule B – GST estimate and administration activities.
C4 – In fulfilling these reporting requirements, the ATO will provide to GSTAS (through GPAS) information on the following matters as appropriate:
- financial information relating to the ATO’s costs in administering the GST
- reports of audits of GST costs and the systems for control of costs
- information necessary to demonstrate performance in relation to the measures outlined in Schedule A – Performance outcome measures
- key emerging compliance issues
- performance on activities specifically related to additional expenditure; refer to Schedule D – 2023–24 budget measures: GST Compliance Program 4-year extension
- as compliance effectiveness measures are developed, they will be considered for inclusion during the annual review period, and
- significant issues impacting on the GST administrative base.
C5 – The ATO will also report on an ad hoc basis as agreed between the Parties.
Audit arrangements
Special purpose audit of GST costs and the systems for control of GST costs
C6 – The objective of the special purpose audit (the audit) is to provide an independent opinion as to whether:
- the special purpose reports relating to GST costs are free as a whole from material misstatement
- effective controls have been maintained in relation to the monitoring and reviewing of GST activity costs, and
- the cost attribution model is appropriately allocating the correct level of GST administration costs.
C7 – The audit will provide reasonable assurance that:
- the GST Cost Statement prepared by the ATO presents fairly in accordance with the accounting policies described in Schedule B, and
- effective controls are maintained in relation to the monitoring and reviewing of GST activity costs as specified in Schedule B.
C8 – The terms of reference for the audit engagement will provide for:
- an audit report which identifies the scope of the special purpose audit, and an opinion on the matters specified in Clause C7
- review of the terms of reference at specified intervals, and
- materiality levels to be determined in accordance with applicable Accounting Standards.
C9 – In accordance with accepted audit practice, all reports emanating from the special purpose audit will be provided by the ANAO directly to the ATO. The ATO will provide a copy of the ATO’s audit report to GPAS which then (through GSTAS) provides it to the CFFR as soon as it becomes available.
C10 – Additional costs to the ATO associated with the audit of GST costs and the system for control of GST costs will be included in the cost of GST administration.
Other reviews
C11 – The Parties may agree to an independent review of any aspect of GST operations that has a material impact on the agreed outcome. GSTAS (through GPAS) will be consulted when developing the terms of reference for the review.