Specific commitments to government

Throughout 2010-11 we undertook activities specifically funded by government.

Income tax investment

We received around $774 million (including $8.6 million for capital) in additional funding from the government for the period 2008-09 to 2011-12. The funding is to enhance our compliance activities relating to income tax risks, particularly for large businesses and wealthy individuals. We expect to raise an additional $5.7 billion in income tax over the life of the income tax investment initiative.

At the end of 2010-11 (year three of the initiative) we are on track with our overall income tax investment commitments.

Strategic compliance

In addition to the income tax investment outlined above, in 2009-10 the government committed $547 million over four years to address particular compliance issues, including abuse of tax havens, risks related to Australia's economic recovery, the need to promote a level playing field for small business, and the need to support businesses and other taxpayers in financial distress.

At the end of 2010-11 (year two of the initiative) we are on track with our overall strategic compliance commitments.

GST investment in compliance

In 2010-11 the government provided $337.5 million over four years to fund additional activities promoting voluntary GST compliance and providing a level playing field for Australian businesses. Arrangements for funding these activities are settled with the states and territories in accordance with the GST Administration Performance Agreement.

This measure seeks to mitigate risks relating to fraudulent GST refund claims, systematic under-reporting of GST liabilities, non-lodgment of GST returns and non-payment of GST debts. This measure is expected to raise an additional $2.7 billion in revenue over four years due to increased taxpayer compliance. At the end of 2010-11 (year one of the program) we were on track with our overall GST compliance program commitments.

    Last modified: 31 Oct 2011QC 28036