• Appendix 1 - Examples of indicators

    The following table contains examples of indicators for each of the four key compliance obligations and for community confidence. The table also illustrates the alignment between the desired outcomes, success goals, strategies and indicators.

    Compliance obligations and community confidence

    Registration

    Lodgment

    Desired outcome

    Individual registrations are appropriate to relevant population size.

    Taxpayers lodge their income tax returns by the due date.

    Success goal

    A sustained improvement in complying with the obligations to register (within the identified risk group).

    Sustained improvement in the population of late lodgers that lodge their income tax return by the due date.

    Target population

    High school students that are new entrants.

    • Identified population of late lodgers
    • Tax agents

     

    Strategies and tactics

    Help and education:

    • school visits
    • review information products
    • consult with financial institutions.

     

    Help and education:

    • advisory letters for late lodgers
    • visits to tax agents with clients that lodge late.

     

    Indicator

    Trend in number of registered taxpayers (by specific type) compared with relevant external population measures (eg Australian Bureau of Statistics data for population aged 15 years and over).

    • Trend in proportion of late lodgers compared to total population
    • Rate of on-time lodgments
    • Proportion of target population lodging on time

     

    Evaluation approach

    • Trend and ratio analysis
    • Comparison with external benchmark

     

    • Trend and ratio analysis
    • Measures of central tendency to assess (preferably median) number of days late compared to population/industry group
    • Randomised controlled trials to measure changes in behaviour of the target group

     

    Compliance obligations and community confidence

    Reporting

    Payment

    Community confidence

    Desired outcome

    Taxpayers with rental properties (and their intermediaries) understand and voluntarily meet their obligations.

    Revenue from outstanding debt is collected in a timely manner.

    The community perceives increased ATO activity in addressing the cash economy.

    Success goal

    Rental property investors correctly declare their rental income and claim only those deductions to which they are entitled.

    Taxpayers with outstanding debts pay their debts in a timely manner.

    The community has increased awareness of our activity in the cash economy.

    Target population

    • Rental property owners
    • Tax agents

     

    Identified population of debtors with outstanding debt.

    • Community
    • Tax agents

     

    Strategies and tactics

    Active compliance:

    • audits.

    Help and education:

    • advisory letters for taxpayers with rental properties
    • visits to agents with clients with rental properties.

     

    Help and education:

    • outbound calls to taxpayers with outstanding debts
    • targeted advisory letters.

     

    Market research:

    • community perception survey
    • professionalism survey.

    Marketing and communication:

    • media releases.

     

    Indicator

    • % change in proportion of correct rental claims in income tax returns over long term for those targeted
    • Trend in rate of notional revenue gain (as measured by targeted letter program)
    • Ratio of rental deductions to gross rent tracked for agents visited

     

    • Trend in average number of days debt is outstanding
    • Proportion of taxpayers with outstanding debt (pre and post intervention)
    • Ratio of debt to collections for target group

     

    • Community and tax agent perception surveys reflect increased community awareness of our activity in the cash economy
    • Trend in number of related media releases published in the media

     

    Evaluation approach

    • Randomised controlled trials
    • Longitudinal studies (to measure sustained impact)
    • Trend analysis

     

    • Trend in average days debt is outstanding for target group
    • Baseline comparison
    • Benchmark comparison to related industry group

     

    • Baseline comparison
    • Rating scale comparisons across multiple survey periods

     

    Last modified: 19 Jan 2015QC 21200