The goods and services (GST) gap is the difference between the amount of GST payable (assuming full compliance by all taxpayers) and the amount actually collected by us in respect of liabilities due for a defined period.
We have published the GST gap since 2012 and our methodology has benefited from ongoing refinement. Therefore, it is the most detailed tax gap analysis we have conducted and also includes an estimate of the voluntary compliance ratio (VCR).
The VCR complements the GST gap by measuring the proportion of taxpayers fully compliant with all four pillars of compliance – that is, being correctly registered, reporting and paying on time, and reporting the correct amount.
- The net GST gap, in 2013–14, is estimated to be $2.7 billion or 4.9% of revenue.
- The gross GST gap is estimated to be 10.6%.
- The GST VCR by value is equivalent to 84% of theoretical revenue.