Australian Taxation Office

Date

Section 1: Agency overview and resources

1.1 Strategic direction statement

The role of the Australian Taxation Office (ATO) is to effectively manage and shape the tax, excise and superannuation systems that support and fund services for Australians, including ensuring the community has confidence in the administration of these systems.

The taxation and superannuation systems are part of Australia's social and economic infrastructure. A major part of the ATO's administration of these systems is emphasising to the community the importance of willing and proper participation, in underpinning nation building. While the ATO will continue with its major responsibilities, the way it conducts its business will change significantly with a focus on new products and services, a drive for productivity improvements and a commitment to improve its services. The ATO's vision is to be a leading taxation and superannuation administration, known for its contemporary service, expertise and integrity. In seeking to achieve this vision, the ATO has four main goals:

  • easy for people to participate;
  • contemporary and tailored service;
  • purposeful and respectful relationships; and
  • professional and productive organisation.

The journey towards achievement of these goals is guided by the following strategies:

  • build a culture that embodies values and transforms the client experience;
  • simplify interactions, maximise automation and reduce costs;
  • connect with the community and other agencies in meaningful ways;
  • influence policy and law design for more certain outcomes;
  • use data in a smarter way to improve decisions, services and compliance; and
  • reshape the workforce to optimise capability and performance.

The goals and strategies are supported by the ATO's values of being impartial, committed to service, accountable, respectful and ethical.

1.2 Agency resource statement

Table 1.1 shows the total resources for the ATO.

 

Table 1.1: Australian Taxation Office resource statement — Budget estimates for 2014‑15
as at Budget May 2014
    Estimate
of prior
year amounts
available in
2014‑15
$'000		 +  Proposed
at Budget
2014‑15
$'000		 =  Total
estimate
2014‑15
$'000		 Actual
available
appropriation
2013‑14
$'000
Ordinary annual services              
Departmental              
Prior year departmental appropriation   550,250 1 -   550,250 -
Departmental appropriation2   -   3,342,775 3 3,342,775 3,434,597
Receipts from other sources (s31)   -   73,572 4 73,572 75,049
Total departmental   550,250   3,416,347   3,966,597 3,509,646
Administered expenses              
Outcome 1   -   284 3 284 6,697
Total administered expenses   -   284   284 6,697
Total ordinary annual services A 550,250   3,416,631   3,966,881 3,516,343
Other services              
Departmental non-operating              
Equity injections   -   25,943 5 25,943 38,962
Total other services B -   25,943   25,943 38,962
Total available annual appropriations (A+B)   550,250   3,442,574   3,992,824 3,555,305
Special appropriations              
Product Grants and Benefits Administration Act 2000 -
Cleaner fuel grants		   -   132,000   132,000 82,000
Product Grants and Benefits Administration Act 2000 -
Product stewardship for oil		   -   50,000   50,000 47,000
Superannuation Guarantee (Administration) Act 1992   -   468,000   468,000 429,000
Taxation Administration Act 1953 -
section 16 (Non-refund items)6		   -   9,552,650   9,552,650 9,165,400
Total special appropriations C -   10,202,650   10,202,650 9,723,400
Total appropriations excluding special accounts   550,250   13,645,224   14,195,474 13,278,705
Special accounts            
Opening balance7   92,774   -   92,774 -
Appropriation receipts   -   55,339   55,339 89,161
Non-appropriation receipts to special accounts   -   1,779,010   1,779,010 463,452
Total special account D 92,774   1,834,349   1,927,123 552,613
Total resourcing (A+B+C+D)   643,024   15,479,573   16,122,597 13,831,318
Less appropriations drawn from annual
or special appropriations above and
credited to special accounts		   -   55,339   55,339 89,161
Total net resourcing for the ATO   643,024   15,424,234   16,067,258 13,742,157

1. Estimated adjusted balance carried forward from previous year.

2. Includes $115.8 million in 2014‑15 ($105.9 million in 2013‑14) for the departmental capital budget (also refer to Table 3.2.5).

3. Appropriation Bill (No. 1) 2014‑15.

4. Receipts received under section 31 (s31) of the Financial Management and Accountability Act 1997.

5. Appropriation Bill (No. 2) 2014‑15.

6. These figures relate to administered expenses including fuel tax credits, research and development tax incentives and, interest on overpayment and early payment of tax. Estimated tax refund items for 2013‑14 are $96.2 billion (including $145 million paid via the Australian Customs Service (ACS) on the ATO's behalf) and $99.3 billion for 2014‑15 (including $160 million paid via the ACS on the ATO's behalf).

7. Estimated opening balance for special accounts. For further detail on special accounts see Table 3.1.2.

1.3 Budget measures

Budget measures relating to the ATO are summarised on the following pages.

Table 1.2: Australian Taxation Office 2014‑15 Budget measures
Part 1: Measures announced since the 2013‑14 MYEFO
  Programme 2013‑14
$'000		 2014‑15
$'000		 2015‑16
$'000		 2016‑17
$'000		 2017‑18
$'000
Expense measures            
Australian Taxation Office - savings            
Departmental expenses 1.1 - - (16,800) (42,000) (84,000)
Efficiency Dividend -
a further temporary increase of 0.25 per cent		            
Departmental expenses 1.1 - (8,266) (16,055) (23,178) (22,790)
Higher Education Superannuation Programme -
resumption of payments to universities in NSW		            
Departmental expenses 1.1 - - - - -
Migration Programme - allocation of places for 2014‑15            
Departmental expenses 1.1 - - - - -
Remove Grandfathering of Student Start-Up
Scholarship Recipients		            
Departmental expenses 1.1 - 221 147 157 159
Restoring integrity in the Australian tax system -
further decisions		            
Departmental expenses 1.1 (1,348) (7,884) (10,894) (5,173) 10,441
Social Security Agreement with India            
Departmental expenses 1.1 - - - - -
Trade Support Loans - establishment            
Departmental expenses 1.1 1,212 2,196 713 604 537
Korea-Australia Free Trade Agreement            
Administered expenses 1.6 - - 300 300 300
Taxation treatment of biodiesel - modification            
Administered expenses 1.7 - - (52,000) (54,000) (56,000)
Administered expenses 1.9 - - - 1,000 5,000
Exploration Development Incentive - introduction            
Administered expenses 1.8 - 25,000 35,000 40,000 -
Reintroduction of fuel excise indexation            
Administered expenses 1.10 - 100,700 350,000 550,000 800,000
National Rental Affordability Scheme -
discontinue incentive allocations		            
Administered expenses 1.11 - - (28,800) (78,5 00) (80,900)
Product Stewardship for Oil Scheme -
modification to the levy		            
Administered expenses 1.12 - 2,000 2,000 2,000 3,000
Research and Development Tax Incentive -
reducing the rates of the refundable and
non-refundable tax offsets		            
Administered expenses 1.13 - (70,000) (70,000) (70,000) (70,000)
Abolish the Seafarer Tax Offset            
Administered expenses 1.14 - - (4,000) (4,000) (4,000)
First Home Saver Accounts scheme -
cessation		            
Departmental expenses 1.1 - - (18,100) (18,100) (18,100)
Administered expenses 1.17 (1,000) (18,000) (18,000) (19,000) (20,000)
Departmental expenses   (136) (13,733) (60,989) (87,690) (113,753)
Administered expenses   (1,000) 39,700 214,500 367,800 577,400
Total expense measures   (1,136) 25,967 153,511 280,110 463,647
Related capital            
Efficiency Dividend -
a further temporary increase of 0.25 per cent		 1.1 - (284) (564) (851) (893)
Social Security Agreement with India 1.1 - 793 - - -
Trade Support Loans - establishment 1.1 387 2,804 - - -
Total related capital   387 3,313 (564) (851) (893)

Prepared on a Government Finance Statistics (fiscal) basis.

Table 1.2: Australian Taxation Office 2014‑15 Budget measures (continued)
Part 2: Measures not previously reported in a portfolio statement
  Programme 2013‑14
$'000		 2014‑15
$'000		 2015‑16
$'000		 2016‑17
$'000		 2017‑18
$'000
Expense measures            
Budget Measures 2013-14            
Public Service efficiencies            
Departmental expenses 1.1 (1,219) (4,732) (10,398) (14,512) (13,770)
Economic Statement 2013            
Addressing the level of unpaid tax and
superannuation in the community		            
Departmental expenses 1.1 15,565 19,845 29,781 34,080 34,837
Administered expenses 1.21 - 15,000 15,000 15,000 15,000
Efficiency Dividend -
temporary increase in the rate		            
Departmental expenses 1.1 - (34,997) (77,290) (120,784) (120,784)
Personal income tax -
deferring the cap on work-related
self-education expenses		            
Departmental expenses 1.1 - (700) (1,200) - -
Reforms to the APS management and efficient
procurement of agency software		            
Departmental expenses 1.1 (4,974) (8,629) (14,100) (13,769) (13,769)
Superannuation - reform of arrangements relating
to transfer of lost member accounts to the ATO		            
Departmental expenses 1.1 - 27 3,195 2,325 3,048
Administered expenses 1.22 - - 9,629 7,257 -
Carbon pricing mechanism - trading
replacing fixed price with an emissions
scheme from 1 July 2014		            
Administered expenses 1.9 - 350,000 - - -
Mid-Year Economic and Fiscal Outlook 2013‑14            
Reducing superannuation compliance costs for small business            
Departmental expenses 1.1 1,182 6,099 6,210 6,186 6,246
Repeal of the Minerals Resource Rent Tax            
- abolishing related tax and superannuation measures            
Departmental expenses 1.1 - (15,204) (27,111) (25,780) (25,780)
Administered expenses 1.18 (960,600) (922,700) (908,400) (896,400) -
- forgone revenue from repeal            
Departmental expenses 1.1 (21,740) (19,123) (19,842) (21,259) (21,259)
Restoring integrity in the Australian tax system            
Departmental expenses 1.1 (9,078) (10,596) (16,153) (17,050) (17,050)
Simplified indexation of the private health insurance Government contribution            
Departmental expenses 1.1 856 882 684 456 400
Superannuation advertising savings            
Administered expenses 1.1 (1,007) (500) (500) - -
Repeal of the Carbon Tax            
- abolishing land initiatives and unnecessary bureaucracies            
Administered expenses 1.8 - (20,000) - - -
- abolishing other measures            
Departmental expenses 1.1 - (2,300) - - -
- forgone revenue from repeal of the Carbon Tax            
Administered expenses 1.9 - 100,000 250,000 350,000 500,000
2013‑14 Humanitarian Programme            
Administered expenses 1.18 - - - - -
Repeal the tax bonus for working Australians            
Administered expenses 1.22 - - - - -
Departmental expenses   (19,408) (69,428) (126,224) (170,107) (167,881)
Administered expenses   (961,607) (478,200) (634,271) (524,143) 515,000
Total expense measures   (981,015) (547,628) (760,495) (694,250) 347,119
Related capital            
Economic Statement 2013            
Personal income tax - deferring the cap on work-related
self-education expenses		 1.1 - (300) - - -
Mid-Year Economic and Fiscal Outlook 2013‑14            
Repeal of the Minerals Resource Rent Tax -
abolishing related tax and superannuation measures		 1.1 - - (1,500) - -
Restoring integrity in the Australian tax system 1.1 (1,069) (2,660) - - -
Simplified indexation of the private health insurance Government contribution 1.1 100 - - - -
Total related capital   (969) (2,960) (1,500) - -

Prepared on a Government Finance Statistics (fiscal) basis.

1.4 Changes to the programme structure

The ATO has made changes to its programme structure for 2014‑15.

  • The Conservation Tillage Refundable Tax Offset, the Seafarer Tax Offset and Targeted assistance through the taxation system (previously part of Programme 1.21) are now separate Programmes 1.8, 1.14 and 1.22 respectively.
  • The Exploration Development Incentive (Programme 1.12) has been established as a new programme.
  • The component structure for Programme 1.1 has also been removed.

The revised programme structure is shown in Table 2.1

Section 2: Outcomes and planned performance

2.1 Outcomes and performance information

Government outcomes are the intended results, impacts or consequences of actions by the Government on the Australian community. Commonwealth programmes are the primary vehicle by which government agencies achieve the intended results of their outcome statements. Agencies are required to identify the programmes which contribute to Government outcomes over the budget and forward years.

The ATO's outcome is described below specifying the strategy, programmes, objectives, deliverables and key performance indicators used to assess and monitor the performance of the ATO.

Outcome 1: Confidence in the administration of aspects of Australia's taxation and superannuation systems through helping people understand their rights and obligations, improving ease of compliance and access to benefits, and managing non‑compliance with the law

Outcome 1 strategy

The ATO seeks to deliver its outcome by:

  • providing contemporary service and fostering willing participation;
  • sharing data intelligence and expertise across government and internationally;
  • collecting revenue and delivering benefits to the community;
  • managing non‑compliance; and
  • securing retirement income.

The ATO will continue to work with the Department of the Treasury to advise the government of operational implications of policy initiatives, as well as changes to legislation that could improve the regulatory framework or reduce the cost of compliance for business or the community.

The ATO will maintain robust and effective relationships across government and international jurisdictions and will encourage stakeholders to communicate their views to the ATO, in order to improve outcomes and minimise compliance costs.

The ATO provides support to the Tax Practitioners Board, the Australian Business Register and the Australian Charities and Not‑for‑profits Commission. It also manages and contributes to a number of whole‑of‑government initiatives that deliver a range of services.

The ATO's corporate plan outlines its strategic direction, service commitments and a set of performance measures, which includes all programme deliverables and key performance indicators listed in this Portfolio Budget Statement. The ATO's annual report assesses the achievements of the agency against this plan.

Outcome 1 Budgeted expenses and resources

Table 2.1: Budgeted expenses and resources for Outcome 1
Outcome 1: Confidence in the administration of aspects of Australia's taxation and superannuation systems through helping people understand their rights and obligations, improving ease of compliance and access to benefits, and managing non-compliance with the law 2013‑14
Estimated
actual
expenses
$'000		 2014 ‑15
Estimated
expenses
$'000
Programme 1.1: Australian Taxation Office    
Administered expenses    
Ordinary annual services (Appropriation Bill No. 1) 5,690 284
Departmental expenses    
Departmental appropriation 3,218,202 3,115,373
Expenses not requiring appropriation in budget year 160,606 163,301
Total for Programme 1.1 3,384,498 3,278,958
Programme 1.2: Tax Practitioners Board    
Departmental expenses    
Departmental appropriation 18,206 15,243
Total for Programme 1.2 18,206 15,243
Programme 1.3: Australian Business Register    
Departmental expenses    
Departmental appropriation 143,836 143,362
Total for Programme 1.3 143,836 143,362
Programme 1.4: Australian Valuation Office    
Departmental expenses    
Special accounts 43,542 -
Total for Programme 1.4 43,542 -
Programme 1.5: Australian Charities and Not-for-profits Commission    
Departmental expenses    
Special accounts 15,161 15,039
Total for Programme 1.5 15,161 15,039
Programme 1.6: Australian Screen Production Incentive    
Administered expenses    
Special appropriations 284,000 264,000
Total for Programme 1.6 284,000 264,000
Programme 1.7: Cleaner Fuels Grant Scheme    
Administered expenses    
Special appropriations 82,000 132,000
Total for Programme 1.7 82,000 132,000
Programme 1.8: Conversation Tillage Refundable Tax Offset    
Administered expenses    
Special appropriations 20,000 -
Total for Programme 1.8 20,000 -
Programme 1.9: Exploration Development Incentive    
Administered expenses    
Special appropriations - 25,000
Total for Programme 1.9 - 25,000
Programme 1.10: Fuel Tax Credits Scheme    
Administered expenses    
Special appropriations 5,822,900 6,270,200
Total for Programme 1.10 5,822,900 6,270,200
Programme 1.11: National Rental Affordability Scheme    
Administered expenses    
Special appropriations 128,500 177,650
Total for Programme 1.11 128,500 177,650
Programme 1.12: Product Stewardship for Oil    
Administered expenses    
Special appropriations 47,000 50,000
Total for Programme 1.12 47,000 50,000
Programme 1.13: Research and Development Tax Incentive    
Administered expenses    
Special appropriations 2,246,000 1,940,000
Total for Programme 1.13 2,246,000 1,940,000
Programme 1.14: Seafarer Tax Offset    
Administered expenses    
Special appropriations 4,000 4,000
Total for Programme 1.14 4,000 4,000
Programme 1.15: Baby Bonus Tax Offsets    
Administered expenses    
Special appropriations 700 -
Total for Programme 1.15 700 -
Programme 1.16: Education Tax Refund    
Administered expenses    
Special appropriations - -
Total for Programme 1.16 - -
Programme 1.17: First Home Saver Accounts    
Administered expenses    
Special appropriations 18,000 -
Total for Programme 1.17 18,000 -
Programme 1.18: Low Income Earner Superannuation Contribution    
Administered expenses    
Special appropriations - -
Total for Programme 1.18 - -
Programme 1.19: Private Health Insurance Rebate    
Administered expenses    
Special appropriations 191,000 200,000
Total for Programme 1.19 191,000 200,000
Programme 1.20: Superannuation Co-contribution Scheme    
Administered expenses    
Special appropriations 161,000 167,000
Total for Programme 1.20 161,000 167,000
Programme 1.21: Superannuation Guarantee Scheme    
Administered expenses    
Special appropriations 429,000 468,000
Total for Programme 1.21 429,000 468,000
Programme 1.22 Targeted Assistance Through the Taxation system    
Administered expenses    
Special appropriations 39,300 4,800
Total for Programme 1.22 39,300 4,800
Programme 1.23: Interest on Overpayment and Early Payments of Tax    
Administered expenses    
Special appropriations 250,000 500,000
Total for Programme 1.23 250,000 500,000
Programme 1.24: Bad and Doubtful Debts and Remissions    
Administered expenses    
Expenses not requiring appropriation in budget year 7,163,728 7,131,996
Total for Programme 1.24 7,163,728 7,131,996
Outcome 1 totals by appropriation type    
Administered expenses    
Ordinary annual services (Appropriation Bill No. 1) 5,690 284
Special appropriations 9,723,400 10,202,650
Expenses not requiring appropriation in budget year 7,163,728 7,131,996
Departmental expenses    
Departmental appropriation 3,380,244 3,273,978
Special accounts 58,703 15,039
Expenses not requiring appropriation in budget year 160,606 163,301
Total expenses for Outcome 1 20,492,371 20,787,248
     
  2013‑14 2014‑15
Average staffing level (number) 21,397 19,068

Contributions to Outcome 1

Programme 1.1: Australian Taxation Office
Programme objective

The ATO is the Government's principal revenue collection agency, administering Australia's taxation system, regulating aspects of the superannuation system and supporting delivery of government benefits to the community.

The objective of the ATO is to administer aspects of Australia's taxation and superannuation systems fairly by helping people do the right thing, by making it as easy as possible for taxpayers to comply, ensuring effective strategies are in place to deter, detect and deal with non‑compliance, and developing and supporting the capability of its people and of others in the system.

Programme expenses

Estimates for the forward years reflect the impact of government policy initiatives.

Table 2.2: Programme 1.1 expenses
  2013-14
Revised
budget
$'000		 2014-15
Budget
$'000		 2015-16
Forward
year 1
$'000		 2016-17
Forward
year 2
$'000		 2017-18
Forward
year 3
$'000
Programme 1.1: Australian Taxation Office          
Annual departmental expenses          
Departmental items 3,378,808 3,278,674 3,140,890 2,997,300 2,913,043
Annual administered expenses          
Administered item 5,690 284 31 31 -
Total programme expenses 3,384,498 3,278,958 3,140,921 2,997,331 2,913,043

Programme deliverables

The ATO has the following programme deliverables:

  • number of significant matters that have been consulted on;
  • number of customer service interactions delivered through the multi‑channel environment;
  • number of registrations processed;
  • number of taxpayers who meet their lodgement obligations;
  • number of returns, statements and forms processed;
  • number of interpretive guidance products, objections and rulings provided;
  • number of payments processed;
  • value of net tax collected;
  • number of refunds issued;
  • value of refunds paid;
  • number of compliance audits, reviews and other checks undertaken;
  • value of compliance liabilities raised and collected as a result of compliance audits, reviews and other checks;
  • value of debt collected;
  • number of disputed cases resolved;
  • number of lost and ATO‑held superannuation accounts;
  • value of lost and ATO‑held superannuation accounts; and
  • number of international information exchanges.
Programme key performance indicators

The ATO has the following programme key performance indicators:

  • community and key stakeholder engagement and satisfaction with ATO performance;
  • client satisfaction with independence of review and the service provided;
  • proportion of draft legislation which is assured before introduction to Parliament;
  • earlier resolution of disputed cases;
  • proportion of individual tax file number registrations compared to the Australian Bureau of Statistics estimated resident population;
  • proportion of company tax file number registrations compared to the Australian Securities and Investments Commission registered population;
  • proportion of taxpayers who lodge their income tax returns on time;
  • proportion of taxpayers who lodge their activity statements on time;
  • time‑cost index for business and superannuation funds to prepare and complete key tax forms;
  • adjusted average cost to individual taxpayers of managing their tax affairs;
  • proportion of liabilities paid on time by value for each of the major tax revenue types;
  • net cost to collect $100;
  • ratio of collectable debt to net tax collections;
  • adjusted gross operating surplus compared to company profit and tax payable;
  • goods and services tax (GST) gap as a proportion of GST revenue;
  • growth in salary and wages reported on income tax returns compared to growth in salary and wages estimated by the Australian Bureau of Statistics;
  • adjusted employer superannuation contributions as a proportion of adjusted salary and wages; and
  • proportion of self‑managed superannuation funds contraventions compared to the number of fund lodgements.
Programme 1.2: Tax Practitioners Board
Programme objective

The Tax Practitioners Board (TPB) has the general administration of the Tax Agent Services Act 2009 (TASA) and is responsible for the regulation of tax practitioners. These practitioners include tax agents, business activity statement (BAS) agents and, from 1 July 2014, tax (financial) advisers.

The objective of the TPB is to ensure that tax agent services are provided to the public in accordance with appropriate standards of professional and ethical conduct.

The TPB's purpose is to regulate tax practitioners in a fair, consistent and practical way under the TASA to protect consumers, thereby strengthening the integrity of the tax practitioner profession.

Programme expenses

The reduction in expenses from 2013‑14 to 2014‑15 reflects the removal of temporary supplementation from Programme 1.1. There are no significant changes to estimates across the forward years.

Table 2.3: Programme 1.2 expenses
  2013-14
Revised
budget
$'000		 2014-15
Budget
$'000		 2015-16
Forward
year 1
$'000		 2016-17
Forward
year 2
$'000		 2017-18
Forward
year 3
$'000
Annual departmental expenses          
Departmental items 18,206 15,243 15,093 15,001 14,895
Total programme expenses 18,206 15,243 15,093 15,001 14,895
Programme deliverables

The TPB has the following programme deliverables:

  • maintain a public register of registered and deregistered tax practitioners;
  • maintain an effective complaints handling and review process;
  • administer a system for the registration of tax practitioners;
  • actions taken to deter non‑compliant or illegal behaviour; and
  • number and types of sanctions applied.
Programme key performance indicators

The TPB has the following programme key performance indicators:

  • improvement in the number of registration and renewal applications processed without requiring further applicant interaction;
  • proportion of complaints resolved within service standard;
  • significant majority of registered tax practitioners have maintained appropriate professional indemnity insurance cover;
  • tax practitioners' and other stakeholders' satisfaction with communication and consultation by the TPB; and
  • regular publication of guidance to registered tax practitioners on their rights and obligations.
Programme 1.3: Australian Business Register

The Commissioner of Taxation is also the Registrar of the Australian Business Register (ABR). The Registrar has separate and distinct responsibilities as outlined in section 28 of the A New Tax System (Australian Business Number) Act 1999.

The ABR programme encompasses:

  • the ABR: a comprehensive national business dataset;
  • AUSkey: a secure authentication system giving business easy‑to‑use access to online government services; and
  • Standard Business Reporting (SBR): SBR defines a common language for business information and standards for electronic information sharing. It is used in business record‑keeping software to support running the business and reduce the burden of reporting to government.
Programme objective

The ABR programme contributes to improving the wellbeing of the Australian people through enhanced business productivity by:

  • reducing the administrative cost to business of complying with government regulation;
  • influencing government policy development and implementation, through advocating the use of services, technologies and processes to minimise the administrative impact on business; and
  • encouraging the adoption of new practices by businesses to reduce operating costs.
Programme expenses

Estimates for the forward years reflect the impact of government policy initiatives.

Table 2.4: Programme 1.3 expenses
  2013-14
Revised
budget
$'000		 2014-15
Budget
$'000		 2015-16
Forward
year 1
$'000		 2016-17
Forward
year 2
$'000		 2017-18
Forward
year 3
$'000
Annual departmental expenses          
Departmental items 143,836 143,362 142,257 141,672 141,374
Total programme expenses 143,836 143,362 142,257 141,672 141,374
Programme deliverables

The ABR has the following programme deliverables to reduce business costs leading to improved business productivity and competitiveness by:

  • increased use by business and government of a complete and single source of business information for planning and service delivery;
  • broader adoption and use of consistent information exchange standards by business and government; and
  • facilitating more streamlined online interactions between business and government including a single business entry point.
Programme key performance indicators

The ABR has the following programme key performance indicators:

  • increased use of the national business dataset by government agencies and the community;
  • improvement in the quality of national business dataset;
  • increase in the adoption and use of AUSkey by business;
  • increase in the number of businesses using SBR‑enabled software;
  • increased use of the SBR common language and standards; and
  • reduction in administrative costs to business.
Programme 1.4: Australian Valuation Office

On 24 January 2014, it was announced that the Australian Valuation Office (AVO) would cease trading on 30 June 2014. A small number of AVO staff will be retained in the 2014‑15 financial year to close the AVO's corporate operations. This includes records management, closing AVO's financial records, formally transferring legal and administrative responsibilities and notifying the Government of the closure of the AVO. It is expected that these activities will be completed by the end of September 2014.

Programme expenses

Programme expenses reflect the residual wind up costs to support the cessation of AVO operations.

Table 2.5: Programme 1.4 expenses
  2013-14
Revised
budget
$'000		 2014-15
Budget
$'000		 2015-16
Forward
year 1
$'000		 2016-17
Forward
year 2
$'000		 2017-18
Forward
year 3
$'000
Special account expenses          
Valuation Services Special Account 43,542 - - - -
Total programme expenses 43,542 - - - -
           
Programme 1.5: Australian Charities and Not‑for‑profits Commission

The Australian Charities and Not‑for‑profits Commission (ACNC) has been set up as a special account with statutory objects:

  • to maintain, protect and enhance public trust and confidence in the Australian not‑for‑profit sector;
  • to support and sustain a robust, vibrant, independent and innovative Australian not‑for‑profit sector; and
  • to promote the reduction of unnecessary regulatory obligations on the Australian not‑for‑profit sector.

The ACNC Commissioner (the Commissioner) has a number of statutory functions and regulatory powers contained in the Australian Charities and Not‑for‑profits Commission Act 2012 (the ACNC Act) and accompanying legislation and regulations. These include the distinct function to determine and register charities, health promotion institutions, and public benevolent institutions for all Commonwealth purposes and to maintain a free public charity register. The Commissioner also provides support and education to the not‑for‑profit sector, investigates non‑compliance with the ACNC Act and implements a 'report‑once, use often' general reporting framework.

The ACNC complements the ATO's fundamental role in administering aspects of Australia's taxation and superannuation systems.

Programme objective

The ACNC provides independent determination and registration of charities, health promotion institutions, and public benevolent institutions for all Commonwealth purposes. It operates a public information portal to improve the transparency and accountability of the not‑for‑profit sector to the public. It also investigates non‑compliance with the ACNC Act. All of this is to increase public trust and confidence in the charitable and not‑for‑profit sector.

The ACNC delivers education, advice and support to the sector to improve its governance and compliance with the ACNC Act. This promotes the sustainability and effectiveness of the not‑for‑profit sector.

The implementation of a 'report‑once, use‑often' general reporting framework is to reduce red tape and simplify the regulatory framework, in cooperation with other Australian Government agencies and State and Territory Governments, to make it easier for not‑for‑profits to deliver their services to the community.

Programme expenses

On 19 March 2014, the Government introduced the Australian Charities and Not‑for‑profits Commission (Repeal) (No. 1) Bill 2014. However, the ACNC will continue to operate in its current form whilst the current ACNC Act remains in effect and the programme expenses reflect this.

Table 2.6: Programme 1.5 expenses
  2013-14
Revised
budget
$'000		 2014-15
Budget
$'000		 2015-16
Forward
year 1
$'000		 2016-17
Forward
year 2
$'000		 2017-18
Forward
year 3
$'000
Special account expenses          
ACNC Special Account 15,161 15,039 14,845 14,752 14,858
Total programme expenses 15,161 15,039 14,845 14,752 14,858
Programme deliverables

The ACNC has the following programme deliverables:

  • number of charitable status determinations made within agreed timeframes;
  • number of visits to website, and charity register;
  • number of investigations into non‑compliance with the ACNC Act and actions taken; and
  • ACNC deregulation target met.
Programme key performance indicators

The ACNC has the following programme key performance indicators:

  • proportion of determinations delivered within agreed timeframes;
  • proportion of complaints and concerns of non‑compliance with the ACNC Act addressed within agreed timeframes;
  • proportion of advice, education and guidance delivered within agreed timeframes; and
  • percentage of charities' annual information statements submitted compared to the number of registered charities.
Programme 1.6: Australian Screen Production Incentive
Programme objective

The Australian Screen Production Incentive comprises three refundable film tax offsets: the Producer Offset, the Location Offset and the Post, Digital and Visual Effects (PDV) Offset. These offsets are designed to ensure Australia remains competitive in attracting high budget film and television productions and are aimed at providing increased opportunities for Australian casts, crew, post‑production companies and other services to participate in these productions.

The Ministry for the Arts, along with Screen Australia and the ATO, have co‑administration responsibilities for the programme. Screen Australia has responsibility for the Producer Offset while the Ministry for the Arts has responsibility for the Location and PDV Offset.

Programme expenses

The estimates show variations across the forward years. This reflects the fluctuation in the number of films that are expected to be certified across these years. Also refer to Budget Paper No. 2, Budget Measures 2014‑15 for further information.

Table 2.7: Programme 1.6 expenses
  2013-14
Revised
budget
$'000		 2014-15
Budget
$'000		 2015-16
Forward
year 1
$'000		 2016-17
Forward
year 2
$'000		 2017-18
Forward
year 3
$'000
Special appropriations          
Taxation Administration Act 1953 - section 16 (Non-refund items) 284,000 264,000 219,300 245,300 219,300
Total programme expenses  284,000 264,000 219,300 245,300 219,300
Programme deliverables

The ATO is responsible for administering the processing of claims, following certification, through the income tax return lodgement process and under co‑administration arrangements with the Ministry for the Arts and Screen Australia. The ATO also provides a degree of compliance assurance and support for the claims process. Successful delivery is demonstrated by the:

  • number of tax offsets processed; and
  • value of tax offsets processed.
Programme key performance indicators

The ATO has the following programme key performance indicators:

  • number of tax offsets issued compared to the number of tax offset entitlements; and
  • value of tax offsets issued compared to the value of tax offset entitlements.
Programme 1.7: Cleaner Fuels Grant Scheme
Programme objective

The objective of the Cleaner Fuels Grant Scheme is to encourage the manufacture or importation of cleaner fuels that have a lower impact on the environment, by paying a grant in relation to the manufacture or importation of those cleaner fuels.

Programme expenses

The estimates show growth in 2013‑14 and 2014‑15. There are no estimates from 2015‑16 and the forward years. This reflects the impact of Government initiatives. Refer to Budget Paper No. 2, Budget Measures 2014‑15 for further information.

Table 2.8: Programme 1.7 expenses
  2013-14
Revised
budget
$'000		 2014-15
Budget
$'000		 2015-16
Forward
year 1
$'000		 2016-17
Forward
year 2
$'000		 2017-18
Forward
year 3
$'000
Special appropriations          
Product Grants and Benefits Administration Act 2000 - cleaner fuel grants 82,000 132,000 - - -
Total programme expenses  82,000 132,000 - - -
Programme deliverables

The ATO is responsible for delivery of products and services by undertaking all processes, decisions and actions required to administer the programme. The ATO provides compliance assurance and support to the Department of the Treasury and the Department of the Environment. Successful delivery is demonstrated by the:

  • number of claims processed;
  • number of participants registered; and
  • value of payments processed.
Programme key performance indicators

The ATO has the following programme key performance indicator:

  • proportion of payments processed within service standard timeframes.
Programme 1.8: Conservation Tillage Refundable Tax Offset
Programme objective

The Conservation Tillage Refundable Tax Offset is part of the Carbon Farming Futures Programme, which was established to help farmers and landholders benefit from carbon farming. The offset will help landholders benefit from carbon farming by enabling primary producers to claim a 15 per cent refundable tax offset for new eligible conservation tillage equipment installed and ready for use between 1 July 2012 and 30 June 2015, provided they participate in soil carbon sequestration research.

The Government announced in the Mid‑Year Economic and Fiscal Outlook 2013‑14 that it will abolish the Conservation Tillage Refundable Tax Offset starting from 1 July 2014.

Programme expenses

The estimates reflect the programme ceasing on 1 July 2014.

Table 2.9: Programme 1.8 expenses
  2013-14
Revised
budget
$'000		 2014-15
Budget
$'000		 2015-16
Forward
year 1
$'000		 2016-17
Forward
year 2
$'000		 2017-18
Forward
year 3
$'000
Special appropriations          
Taxation Administration Act 1953 - section 16 (Non-refund items) 20,000 - - - -
Total programme expenses  20,000 - - - -
Programme deliverables

The ATO is responsible for administering the Conservation Tillage Refundable Tax Offset through the income tax return lodgement process. Successful delivery is demonstrated by the:

  • number of tax offsets processed; and
  • value of tax offsets processed.
Programme key performance indicators

The ATO has the following programme key performance indicator:

  • proportion of the value of notice data relating to tillage certificates (collected by the Department of Agriculture) that the ATO is able to match with tax return data.
Programme 1.9: Exploration Development Incentive
Programme objective

The Exploration Development Incentive will allow small mineral exploration companies with no taxable income to provide exploration credits, paid as a refundable tax offset, to their Australian resident shareholders for greenfield mineral exploration.

Programme expenses

The estimates reflect the impact of Government initiatives. Refer to Budget Paper No. 2, Budget Measures 2014‑15 for further information.

Table 2.10: Programme 1.9 expenses
  2013-14
Revised
budget
$'000		 2014-15
Budget
$'000		 2015-16
Forward
year 1
$'000		 2016-17
Forward
year 2
$'000		 2017-18
Forward
year 3
$'000
Special appropriations          
Taxation Administration Act 1953 - section 16 (Non-refund items) - 25,000 35,000 40,000 -
Total programme expenses  - 25,000 35,000 40,000 -
Programme deliverables

The ATO has the following programme deliverables:

  • number of applications made by mining exploration companies; and
  • value of exploration credits sought before ATO applies cap.
Programme key performance indicators

The ATO has the following programme key performance indicator:

  • modulation factor provided by the ATO in sufficient time to allow allocation of capped exploration credits to shareholders.
Programme 1.10: Fuel Tax Credits Scheme
Programme objective

The objective of the Fuel Tax Credits Scheme is to remove or reduce the incidence of fuel tax levied on taxable fuels by providing a credit for fuel used for:

  • business activities in machinery, plant and equipment and heavy vehicles; and
  • the domestic generation of electricity by taxpayers not in business.

Since 1 July 2012, an effective carbon charge is also being collected through the fuel tax credit scheme, through a reduction in the fuel tax credit rate for many fuels and activities.

Programme expenses

The estimates reflect the impact of Government initiatives. Refer to Budget Paper No. 2, Budget Measures 2014‑15 for further information.

Table 2.11: Programme 1.10 expenses
  2013-14
Revised
budget
$'000		 2014-15
Budget
$'000		 2015-16
Forward
year 1
$'000		 2016-17
Forward
year 2
$'000		 2017-18
Forward
year 3
$'000
Special appropriations          
Taxation Administration Act 1953 - section 16 (Non-refund items) 5,822,900 6,270,200 6,821,800 7,211,300 7,615,300
Total programme expenses  5,822,900 6,270,200 6,821,800 7,211,300 7,615,300
Programme deliverables

The ATO is responsible for administering the fuel tax credits scheme and providing compliance assurance and support. Successful delivery is demonstrated by the:

  • number of registered participants; and
  • value of claims.
Programme key performance indicators

The ATO has the following programme key performance indicator:

  • proportion of payments processed within service standard timeframes.
Programme 1.11: National Rental Affordability Scheme
Programme objective

The Department of Social Services has policy responsibility for the National Rental Affordability Scheme. The objectives are to:

  • increase the supply of new affordable rental housing;
  • reduce rental costs for low and moderate income households — National Rental Affordability Scheme homes rented to eligible tenants at a rate that is at least 20 per cent below the market value rent; and
  • encourage large‑scale investment and innovative delivery of affordable housing through the provision of the following incentives:
    • an Australian Government incentive per dwelling per year as a tax offset or direct payment; and
    • a State or Territory government incentive as a direct payment per dwelling per year or in‑kind financial support.

The tax offset is claimed through the tax system.

Programme expenses

The estimates show moderate growth across the forward years. The estimates also reflect the impact of Government initiatives. Refer to Budget Paper No. 2, Budget Measures 2014‑15 for further information.

Table 2.12: Programme 1.11 expenses
  2013-14
Revised
budget
$'000		 2014-15
Budget
$'000		 2015-16
Forward
year 1
$'000		 2016-17
Forward
year 2
$'000		 2017-18
Forward
year 3
$'000
Special appropriations          
Taxation Administration Act 1953 - section 16 (Non-refund items) 128,500 177,650 202,232 243,929 251,247
Total programme expenses  128,500 177,650 202,232 243,929 251,247
Programme deliverables

The ATO is responsible for administering the tax offset through the income tax return lodgement process and providing compliance assurance and support for the process. Successful delivery is demonstrated by the:

  • number of tax offsets processed; and
  • value of tax offsets processed.
Programme key performance indicators

The ATO has the following programme key performance indicator:

  • ratio of claims made through the ATO compared to the Department of Social Services.
Programme 1.12: Product Stewardship for Oil Programme
Programme objective

The objective of the Product Stewardship for Oil Programme is to:

  • provide incentives to increase used oil recycling; and
  • encourage the environmentally sustainable management and re‑refining of used oil and its re‑use.

These objectives are met through the payment of a levy on producers and importers of petroleum based oils and their synthetic equivalents. Benefits are paid to oil recyclers as an incentive to undertake increased recycling of used oil.

The Department of the Environment has policy responsibility for the programme, with the ATO administering the programme on its behalf.

Programme expenses

The estimates show moderate growth across the forward years. The estimates also reflect the impact of Government initiatives. Refer to Budget Paper No. 2, Budget Measures 2014‑15 for further information.

Table 2.13: Programme 1.12 expenses
  2013-14
Revised
budget
$'000		 2014-15
Budget
$'000		 2015-16
Forward
year 1
$'000		 2016-17
Forward
year 2
$'000		 2017-18
Forward
year 3
$'000
Special appropriations          
Product Grants and Benefits Administration Act 2000 - product stewardship (oil) benefits 47,000 50,000 53,000 55,000 58,000
Total programme expenses  47,000 50,000 53,000 55,000 58,000
Programme deliverables

The ATO is responsible for delivery of products and services, by undertaking all processes, decisions and actions required to administer the programme. The ATO provides compliance assurance and support to the Department of the Environment. Successful delivery is demonstrated by the:

  • number of claims processed;
  • number of participants registered;
  • value of payments processed; and
  • value of revenue collected.
Programme key performance indicators

The ATO has the following programme key performance indicator:

  • proportion of payments processed within service standard timeframes.
Programme 1.13: Research and Development Tax Incentive
Programme objective

The Research and Development (R&D) Tax Incentive is an ongoing scheme designed to increase the level of research and development being conducted by Australian companies.

The Department of Industry has the primary policy responsibility for the programme with the aim of increasing both the number of companies investing in innovation and the value of innovation investment over time.

The ATO has an important supporting role in processing claims through the tax system for the R&D offset.

Programme expenses

The estimate for 2013‑14 has been revised upward to incorporate previous years' under‑estimation. Forward year estimates show moderate growth. The estimates also reflect the impact of Government initiatives. Refer to Budget Paper No. 2, Budget Measures 2014‑15 for further information

Table 2.14: Programme 1.13 expenses
  2013-14
Revised
budget
$'000		 2014-15
Budget
$'000		 2015-16
Forward
year 1
$'000		 2016-17
Forward
year 2
$'000		 2017-18
Forward
year 3
$'000
Special appropriations          
Taxation Administration Act 1953 - section 16 (Non-refund items) 2,246,000 1,940,000 2,000,000 2,062,000 2,126,000
Total programme expenses  2,246,000 1,940,000 2,000,000 2,062,000 2,126,000
Programme deliverables

The ATO is responsible for administering the concession through the income tax return lodgement process and providing compliance assurance and support for the process. The ATO has responsibility for the expenditure aspects of the concession and also provides marketing and education support for companies and their agents. Successful delivery is demonstrated by the:

  • number of claims processed for 40 per cent non‑refundable research and development tax offset claimants;
  • number of claims processed for 45 per cent refundable research and development tax offset claimants;
  • value of claims processed for 40 per cent non‑refundable research and development tax offset claimants; and
  • value of claims processed for 45 per cent refundable research and development tax offset claimants.
Programme key performance indicators

The ATO has the following programme key performance indicator:

  • proportion of offsets processed within service standard timeframes.
Programme 1.14: Seafarer Tax Offset
Programme objective

The Seafarer Tax Office commenced from 1 July 2012 and is designed to stimulate employment opportunities for Australian seafarers to gain maritime skills. The offset will provide a refundable tax offset for qualifying companies employing eligible seafarers. The Government announced that this programme will be abolished from 2015‑16.

Programme expenses

The estimates reflect the programme ceasing on 1 July 2015. Refer to Budget Paper No. 2, Budget Measures 2014‑15 for further information.

Table 2.15: Programme 1.14 expenses
  2013-14
Revised
budget
$'000		 2014-15
Budget
$'000		 2015-16
Forward
year 1
$'000		 2016-17
Forward
year 2
$'000		 2017-18
Forward
year 3
$'000
Special appropriations:          
Taxation Administration Act 1953 - section 16 (Non-refund items) 4,000 4,000 - - -
Total programme expenses  4,000 4,000 - - -
Programme deliverables

The ATO is responsible for administering the Seafarer Tax Offset through the income tax return lodgement process. Successful delivery is demonstrated by the:

  • number of tax offsets processed; and
  • value of tax offsets processed.
Programme key performance indicators

The ATO has the following programme key performance indicator:

  • relevant taxpayers are aware of how to claim the offset.
Programme 1.15: Baby Bonus
Programme objective

The objective of the Baby Bonus (first child) tax offset was to provide access to a benefit, in the form of a refundable tax offset, for the economic loss experienced in leaving the workforce to care for a new child and to provide a basic benefit for low income earners caring for a new child.

Programme expenses

This programme ceased on 30 June 2009. However, payments will be made to claimants who lodge late claims. Claimants have until 30 June 2014 to lodge baby bonus claims with the ATO. The corresponding expenses have also been recognised in 2013‑14.

Table 2.16: Programme 1.15 expenses
  2013-14
Revised
budget
$'000		 2014-15
Budget
$'000		 2015-16
Forward
year 1
$'000		 2016-17
Forward
year 2
$'000		 2017-18
Forward
year 3
$'000
Special appropriations:          
Taxation Administration Act 1953 - section 16 (Non-refund items) 700 - - - -
Total programme expenses  700 - - - -
Programme deliverables

The Baby Bonus Programme ceased on 30 June 2009 but claimants may lodge claims until 30 June 2014. There will be no deliverables for the Baby Bonus Programme in 2014‑15.

Programme key performance indicators

The Baby Bonus Programme ceased on 30 June 2009 but claimants may lodge claims until 30 June 2014. There will be no key performance indicators for Baby Bonus Programme in 2014‑15.

Programme 1.16: Education Tax Refund
Programme objective

The objective of the Education Tax Refund was to provide eligible claimants access to a benefit to assist with the cost of educating primary and secondary school children.

Programme expenses

All expenses have been recognised in prior years. However, the ATO will continue to make payments to claimants who lodge late claims in respect of years prior to 2011‑12.

Table 2.17: Programme 1.16 expenses
  2013-14
Revised
budget
$'000		 2014-15
Budget
$'000		 2015-16
Forward
year 1
$'000		 2016-17
Forward
year 2
$'000		 2017-18
Forward
year 3
$'000
Special appropriations          
Taxation Administration Act 1953 - section 16 (Non-refund items) - - - - -
Total programme expenses  - - - - -
Programme deliverables

The Education Tax Refund finished on 30 June 2012. There will be no deliverables for the Education Tax Refund Programme in 2014‑15.

Programme key performance indicators

The Education Tax Refund finished on 30 June 2012. There will be no key performance indicators for the Education Tax Refund Programme in 2014‑15.

Programme 1.17: First Home Saver Accounts
Programme objective

The First Home Saver Accounts Programme aims to increase the proportion of homes being purchased by first home buyers by helping them to save a deposit and supporting national savings levels through a combination of lower taxes and a government contribution. These accounts are offered by eligible financial institutions.

Administration of the First Home Saver Accounts Programme is split between the ATO, the Australian Prudential Regulation Authority and the Australian Securities and Investments Commission.

The ATO contributes to helping eligible individuals access the benefits of the programme and understand and comply with their obligations.

Programme expenses

There are no estimates from 2014‑15 and the forward years to reflect the impact of Government initiatives. Refer to Budget Paper No. 2, Budget Measures 2014‑15 for further information.

Table 2.18: Programme 1.17 expenses
  2013-14
Revised
budget
$'000		 2014-15
Budget
$'000		 2015-16
Forward
year 1
$'000		 2016-17
Forward
year 2
$'000		 2017-18
Forward
year 3
$'000
Special appropriations:          
Taxation Administration Act 1953 - section 16 (Non-refund items) 18,000 - - - -
Total programme expenses  18,000 - - - -
Programme deliverables

The ATO is responsible for the calculation and payment of the government contribution and compliance of first home saver account holders and providers. Successful delivery is demonstrated by the:

  • number of government contributions paid;
  • value of government contributions paid; and
  • value of account balances.
Programme key performance indicators

The ATO has the following programme key performance indicator:

  • proportion of government contributions paid to eligible account holders within 60 days.
Programme 1.18: Low Income Superannuation Contribution
Programme objective

The Low Income Super Contribution aimed to address some of the inequity in the superannuation system, where low income earners with a marginal rate of tax less than 15 per cent, pay a higher rate of tax on superannuation contributions than if they had received the money as salary and wages. The programme started from the 2012‑13 income year.

The Government announced in the Mid‑Year Economic and Fiscal Outlook 2013‑14 that it will abolish the low income superannuation contribution, for contributions made from 1 July 2013.

The Treasury has policy responsibility for the programme, while the ATO administers the programme and provides information and support to individuals and superannuation funds through advice and education services.

Programme expenses

The estimates reflect the Government's announced intention to close the programme with effect from 1 July 2013.

Table 2.19: Programme 1.18 expenses
  2013-14
Revised
budget
$'000		 2014-15
Budget
$'000		 2015-16
Forward
year 1
$'000		 2016-17
Forward
year 2
$'000		 2017-18
Forward
year 3
$'000
Special appropriations          
Taxation Administration Act 1953 - section 16 (Non-refund items) - - - - -
Total programme expenses  - - - - -
Programme deliverables

The ATO is responsible for administering the Low Income Super Contribution. This involves determining eligibility and the amount of the contribution, making payments to super funds, processing any adjustments and recoveries and completing requests for review. Successful delivery is demonstrated by the:

  • number of beneficiaries of entitlements determined; and
  • value of entitlements determined.
Programme key performance indicators

The ATO has the following programme key performance indicator:

  • proportion of original contributions paid to superannuation funds within 60 days.
Programme 1.19: Private Health Insurance Rebate
Programme objective

The objective of the Private Health Insurance Rebate is to provide access to a benefit to eligible individuals with private health insurance and to act as an incentive to take up private health insurance.

The Department of Health has policy responsibility for the programme, and the administration of the programme is split between the ATO, the Department of Human Services and registered health insurers, depending on the claim method.

Programme expenses

The estimates show moderate growth across the forward years.

Table 2.20: Programme 1.19 expenses
  2013-14
Revised
budget
$'000		 2014-15
Budget
$'000		 2015-16
Forward
year 1
$'000		 2016-17
Forward
year 2
$'000		 2017-18
Forward
year 3
$'000
Special appropriations:          
Taxation Administration Act 1953 - section 16 (Non-refund items) 191,000 200,000 210,000 221,000 233,000
Total programme expenses  191,000 200,000 210,000 221,000 233,000
Programme deliverables

The ATO is responsible for administering the rebate through the income tax return lodgement process and providing compliance assurance and support for the process. The ATO also provides marketing and education support for individuals and their agents. Successful delivery is demonstrated by the:

  • number of claims processed; and
  • value of rebates processed.
Programme key performance indicators

The ATO has the following programme key performance indicator:

  • proportion of private health insurance rebates claimed through the tax system, and liability imposed on, lodging eligible individuals.
Programme 1.20: Superannuation Co‑contribution Scheme
Programme objective

The Superannuation Co‑contribution Scheme is to help low and middle income earners save for their retirement. Eligible individuals who make personal superannuation contributions to a complying superannuation fund or retirement savings account receive a co‑contribution from the Government up to certain limits.

The Treasury has policy responsibility for the programme, while the ATO administers the programme and provides information and support to individuals and superannuation funds through marketing and education services.

Programme expenses

The estimates show minor growth across the forward years.

Table 2.21: Programme 1.20 expenses
  2013-14
Revised
budget
$'000		 2014-15
Budget
$'000		 2015-16
Forward
year 1
$'000		 2016-17
Forward
year 2
$'000		 2017-18
Forward
year 3
$'000
Special appropriations          
Taxation Administration Act 1953 - section 16 (Non-refund items) 161,000 167,000 169,000 172,000 171,000
Total programme expenses  161,000 167,000 169,000 172,000 171,000
Programme deliverables

The ATO is responsible for determining eligibility and the amount of entitlement, making payments, processing any adjustments and recoveries and completing requests for review. Successful delivery is demonstrated by the:

  • number of beneficiaries of entitlements determined; and
  • value of entitlements determined.
Programme key performance indicators

The ATO has the following programme key performance indicator:

  • proportion of original co‑contributions paid to superannuation funds within 60 days.
Programme 1.21: Superannuation Guarantee Scheme
Programme objective

Under the Superannuation Guarantee (Administration) Act 1992, most employers must pay superannuation contributions into a complying superannuation fund or retirement savings account.

Non‑compliance with the Superannuation Guarantee (Administration) Act 1992 by employers means that eligible employees will not receive their entitlements to, and benefits of, superannuation in their retirement. The ATO administers the programme by supporting employers to comply with their superannuation guarantee obligations and identifying and dealing with those who do not.

Programme expenses

The estimates show moderate growth across the forward years.

Table 2.22: Programme 1.21 expenses
  2013-14
Revised
budget
$'000		 2014-15
Budget
$'000		 2015-16
Forward
year 1
$'000		 2016-17
Forward
year 2
$'000		 2017-18
Forward
year 3
$'000
Special appropriations:          
Superannuation Guarantee (Administration) Act 1992 429,000 468,000 481,000 494,000 501,000
Total programme expenses  429,000 468,000 481,000 494,000 501,000
Programme deliverables

To ensure that employers meet their obligations, the ATO checks employer records, investigates employee complaints and referrals in relation to choice of fund and superannuation guarantee contributions. Successful delivery is demonstrated by the:

  • number of superannuation guarantee complaints leading to a superannuation liability being raised and those leading to no result;
  • number of employees who have had superannuation guarantee entitlements raised as a result of ATO compliance activities and voluntary disclosures;
  • number of employers whose records are checked;
  • value of superannuation guarantee charge:
    • raised (including penalties and interest); and
    • collected;
  • value of superannuation guarantee entitlements distributed to individuals or superannuation funds; and
  • value of superannuation guarantee debt on hand and the amount of superannuation guarantee debt irrecoverable at law or uneconomical to pursue.
Programme key performance indicators

The ATO has the following programme key performance indicator:

  • proportion of employers for whom superannuation guarantee liabilities were raised by the ATO.
Programme 1.22: Targeted assistance through the taxation system
Programme objective

Tax Bonus

The Tax Bonus provides for targeted bonus payments to assist households and support economic growth. The Tax Bonus for Working Australians Repeal Bill 2013 was introduced in March 2014, as the objective of making Tax Bonus payments to eligible Australians has been met.

Interest on Unclaimed Superannuation Monies

Under the Superannuation (Unclaimed Money and Lost Members) Act 1999, superannuation funds must identify certain types of lost and former temporary resident accounts as unclaimed superannuation money and transfer amounts to the ATO every six months.

From 1 July 2013 onwards, any unclaimed superannuation money payments from the ATO to individuals will include interest, at a rate equivalent to the consumer price index, to preserve the value of these accounts. While the Treasury has policy responsibility, the ATO administers the programme.

Programme expenses

The estimates reflect the impact of various implementation dates of unclaimed monies.

Table 2.23: Programme 1.22 expenses
  2013-14
Revised
budget
$'000		 2014-15
Budget
$'000		 2015-16
Forward
year 1
$'000		 2016-17
Forward
year 2
$'000		 2017-18
Forward
year 3
$'000
Special appropriations          
Taxation Administration Act 1953 - section 16 (Non-refund items)          
- Tax Bonus - - - - -
- Interest on unclaimed money 39,300 4,800 26,900 23,200 5,900
Total programme expenses  39,300 4,800 26,900 23,200 5,900
Programme deliverables

The ATO is responsible for the calculation and payment of interest on all unclaimed superannuation accounts when the accounts are transferred from the ATO. Successful delivery is demonstrated by the:

  • number of interest payments processed; and
  • value of interest payments processed.
Programme key performance indicators

The ATO has the following programme key performance indicator:

  • proportion of unclaimed superannuation accounts where interest is paid to the account owner compared to total accounts transferred.
Programme 1.23: Interest on Overpayments and Early Payments of Tax
Programme objective

The objective of the programme is to apply credit interest to taxpayers' accounts where they are entitled under the law.

The application of credit interest is non‑discretionary where an entitlement exists under the Taxation (Interest on Overpayments and Early Payments) Act 1983. Administered interest regimes include:

  • interest on overpayments of tax;
  • delayed refund interest; and
  • interest on early payments of tax.
Programme expenses

Estimates for 2013‑14 are lower, mainly due to a small number of large cases that have been settled and paid during the year, with no significant changes to estimates across the forward years.

Table 2.24: Programme 1.23 expenses
  2013-14
Revised
budget
$'000		 2014-15
Budget
$'000		 2015-16
Forward
year 1
$'000		 2016-17
Forward
year 2
$'000		 2017-18
Forward
year 3
$'000
Special appropriations          
Taxation Administration Act 1953 - section 16 (Non-refund items) 250,000 500,000 500,000 500,000 500,000
Total programme expenses 250,000 500,000 500,000 500,000 500,000
Programme deliverables

The ATO administers eligibility and payments under the Taxation (Interest on Overpayments and Early Payments) Act 1983. Successful delivery is demonstrated by the:

  • number of clients entitled to credit interest due to processing performance; and
  • value of credit interest applied to client accounts due to processing performance.
Programme key performance indicators

The ATO has the following programme key performance indicator:

  • proportion of credit interest paid due to processing performance compared to all credit interest paid.
Programme 1.24: Bad and Doubtful Debts and Remissions
Programme objective

Bad and doubtful debts

The primary objective of the programme is to help ensure that the value of tax receivables reported is a true and fair estimate of what can be collected on behalf of the Australian Government.

The ATO may not be able to collect all tax liabilities due. The ATO estimates the amount it does not expect to recover and, in accordance with accepted accounting practice, creates a bad and doubtful debts provision for this amount. This provision is one of the amounts offset against gross total taxation receivables to determine net total taxation receivables, which is a true and fair estimate of what can be collected on behalf of the Australian Government.

Remissions

The primary objective of the programme is to ensure that taxpayers are relieved of the requirement to pay interest charges or penalties where appropriate based on their individual circumstances in accordance with ATO policy and legislation.

The provision for bad and doubtful debts and remissions are expenses to the Australian Government.

Programme expenses

The estimates show moderate growth across the forward years, which is consistent with the growth in tax receivables.

Table 2.25: Programme 1.24 expenses
  2013-14
Revised
budget
$'000		 2014-15
Budget
$'000		 2015-16
Forward
year 1
$'000		 2016-17
Forward
year 2
$'000		 2017-18
Forward
year 3
$'000
Administered item          
Expenses not requiring appropriation in Budget year 7,163,728 7,131,996 7,600,110 8,055,000 8,639,000
Total programme expenses 7,163,728 7,131,996 7,600,110 8,055,000 8,639,000
Programme deliverables

The ATO administers Bad and Doubtful Debts and Remissions based on legislation and ATO policy. Successful delivery is demonstrated by the:

  • value of provision for bad and doubtful debts; and
  • value of remissions.
Programme key performance indicators

The ATO has the following programme key performance indicators:

  • provision for bad and doubtful debts as a proportion of total tax receivables;
  • penalty remissions as a proportion of penalty imposed; and
  • interest remissions as a proportion of interest imposed.

Section 3: Explanatory tables and budgeted financial statements

Section 3 presents explanatory tables and budgeted financial statements which provide a comprehensive snapshot of agency finances for the budget year 2014‑15. It explains how budget plans are incorporated into the financial statements and provides further details of the reconciliation between appropriations, programme expenses, and movements in administered funds, special accounts and government Indigenous expenditure.

3.1 Explanatory tables

3.1.1 Special accounts

Special accounts provide a means to set aside and record amounts used for specified purposes. Special accounts can be created by a Finance Minister's Determination under the Financial Management and Accountability Act 1997 or under separate enabling legislation. Table 3.1.2 shows the expected additions (receipts) and reductions (payments) for each account used by the ATO.

Table 3.1.1: Estimates of special account cash flows and balances
  Outcome Opening balance
2014-15 2013-14
$'000 		 Receipts
2014-15
2013-14
$'000 		 Payments
2014-15
2013-14
$'000 		 Adjustments
2014-15
2013-14
$'000 

Closing balance
2014-15
2013-14
$'000 
Australian Charities and Not-for-profits Commission Special Account(D) 1 2,683 15,039 14,827 - 2,895
  2,637 15,161 15,115 - 2,683
Excise Security Deposits Account(A) 1 686 - - - 686
  586 100 - - 686
Services for Other Entities and Trust Moneys Special Account(A) 1 2,246 10,000 10,000 - 2,246
  2,246 10,000 10,000 - 2,246
Superannuation Holding Accounts Special Account(A) 1 78,770 32,900 8,400 - 103,270
  63,770 74,000 59,000 - 78,770
Superannuation Clearing House Special Account(A)1 1 7,557 1,766,908 1,762,076 - 12,389
  4,801 423,790 421,034 - 7,557
Valuation Services Special Account(D) 1 832 9,502 10,334 - -
  12,008 29,562 40,738 - 832
Total special accounts 2014-15 Budget estimate   92,774 1,834,349 1,805,637 - 121,486
Total special accounts 2013-14 estimate actual   86,048 552,613 545,887 - 92,774

1. The Superannuation Clearing House Special Account was transferred from the Department of Human Services from 1 April 2014.

(A) = Administered.

(D) = Departmental.

3.1.2 Australian Government Indigenous expenditure

Table 3.1.2: Australian Government Indigenous expenditure
  Appropriations  Other Total Program
  Bill No. 1
$'000		 Bill No. 2
$'000		 Special approp
$'000		 Total approp
$'000		 $'000 $'000  
Australian Taxation Office              
Outcome 1              
Total outcome 2014‑15 9,932 - - 9,932 - 9,932 1.1
Total outcome 2013‑14 4,998 - - 4,998 - 4,998 1.1

3.2 Budgeted financial statements

3.2.1 Differences in agency resourcing and financial statements

There are no material differences in agency resourcing and financial statements.

3.2.2 Analysis of budgeted financial statements

Budgeted departmental income statement

The ATO is budgeting for a balanced budget in 2014‑15 after income tax equivalents expense from the AVO.

This excludes the impact of Operation Sunlight changes to funding whereby depreciation and amortisation expenses are not funded by appropriation from 2010‑11 onward.

The budgeted departmental income statement also reflects changes arising from budget measures as outlined in Table 2.1.

Budgeted departmental balance sheet

The ATO's assets are predominantly non‑financial assets.

The ATO's liabilities continue to be predominantly employee entitlements.

3.2.3 Budgeted financial statements tables

Table 3.2.1: Comprehensive income statement (showing net cost of services)
(for the period ended 30 June)
    Estimated
actual
2013‑14
$'000		 Budget
estimate
2014‑15
$'000		 Forward
estimate
2015‑16
$'000		 Forward
estimate
2016‑17
$'000		 Forward
estimate
2017‑18
$'000
EXPENSES          
Employee benefits 2,237,318 2,152,033 2,055,911 1,958,201 1,897,475
Supplier 1,194,890 1,142,234 1,105,621 1,065,009 1,045,723
Depreciation and amortisation 167,345 158,051 151,553 145,515 140,972
Income tax - - - - -
Total expenses 3,599,553 3,452,318 3,313,085 3,168,725 3,084,170
LESS:          
OWN-SOURCE INCOME          
Revenue          
Sale of goods and rendering of services 96,363 70,649 71,375 74,141 70,929
Other revenue 2,278 2,000 2,000 2,000 2,000
Total revenue 98,641 72,649 73,375 76,141 72,929
Gains          
Other 3,050 3,250 3,250 3,250 3,250
Total gains 3,050 3,250 3,250 3,250 3,250
Total own-source income 101,691 75,899 76,625 79,391 76,179
Net cost of (contribution by) services 3,497,862 3,376,419 3,236,460 3,089,334 3,007,991
Appropriation revenue 3,330,905 3,218,368 3,084,907 2,943,819 2,867,019
Surplus (deficit) attributable to the Australian Government (166,957) (158,051) (151,553) (145,515) (140,972)
Note: Impact of Net Cash Appropriation Arrangements   
  2013‑14
$'000		 2014‑15
$'000		 2015‑16
$'000		 2016‑17
$'000		 2017‑18
$'000
Total Comprehensive Income
(loss) less depreciation/amortisation expenses
previously funded through revenue appropriations		 - - - - -
plus depreciation/amortisation expenses
previously funded through revenue appropriations		 (166,957) (158,051) (151,553) (145,515) (140,972)
Total Comprehensive Income
(loss) - as per the Statement of Comprehensive Income		 (166,957) (158,051) (151,553) (145,515) (140,972)

Prepared on Australian Accounting Standards basis.

Table 3.2.2: Budgeted departmental balance sheet
(as at 30 June)
  Estimated
actual
2013‑14
$'000		 Budget
estimate
2014‑15
$'000		 Forward
estimate
2015‑16
$'000		 Forward
estimate
2016‑17
$'000		 Forward
estimate
2017‑18
$'000
ASSETS          
Financial assets          
Cash and equivalents 20,689 28,856 28,856 28,856 28,856
Trade and other receivables 582,292 563,881 472,040 473,559 467,739
Total financial assets 602,981 592,737 500,896 502,415 496,595
Non-financial assets          
Land and buildings 200,998 220,037 221,066 209,346 188,533
Infrastructure, plant and equipment 60,899 52,380 45,147 38,914 39,397
Intangibles 497,205 476,082 449,238 436,478 433,696
Other 36,173 35,974 35,510 34,825 34,488
Total non-financial assets 795,275 784,473 750,961 719,563 696,114
Total assets 1,398,256 1,377,210 1,251,857 1,221,978 1,192,709
LIABILITIES          
Interest bearing liabilities          
Leases 124,017 112,956 100,964 89,072 77,390
Total interest bearing liabilities 124,017 112,956 100,964 89,072 77,390
Provisions          
Employees 926,477 934,690 857,445 874,698 882,452
Total provisions 926,477 934,690 857,445 874,698 882,452
Payables          
Suppliers 236,325 234,454 231,420 226,943 224,739
Dividends - - - - -
Other 10,827 10,813 10,779 10,729 10,704
Total payables 247,152 245,267 242,199 237,672 235,443
Total liabilities 1,297,646 1,292,913 1,200,608 1,201,442 1,195,285
Net assets 100,610 84,297 51,249 20,536 (2,576)
EQUITY          
Contributed equity 973,575 1,115,313 1,233,818 1,348,620 1,466,480
Reserves 101,553 101,553 101,553 101,553 101,553
Retained surpluses or
accumulated deficits		 (974,518) (1,132,569) (1,284,122) (1,429,637) (1,570,609)
Total equity 100,610 84,297 51,249 20,536 (2,576)
Current assets 573,078 564,452 513,076 500,830 488,834
Non-current assets 825,178 812,758 738,781 721,148 703,875
Current liabilities 583,783 581,654 540,128 540,503 537,733
Non-current liabilities 713,863 711,259 660,480 660,939 657,552

Prepared on Australian Accounting Standards basis.

Table 3.2.3: Budgeted departmental statement of cash flows
(for the period ended 30 June)
  Estimated
actual
2013‑14
$'000		 Budget
estimate
2014‑15
$'000		 Forward
estimate
2015‑16
$'000		 Forward
estimate
2016‑17
$'000		 Forward
estimate
2017‑18
$'000
OPERATING ACTIVITIES          
Cash received          
Goods and services 104,611 73,572 74,825 77,262 74,580
Appropriations 3,271,102 3,198,741 3,160,290 2,946,278 2,893,364
Interest - - - - -
Other 330,947 335,264 346,219 360,629 377,405
Total cash received 3,706,660 3,607,577 3,581,334 3,384,169 3,345,349
Cash used          
Employees 2,153,372 2,122,394 2,125,998 1,934,442 1,893,560
Suppliers 1,283,089 1,239,833 1,213,018 1,192,596 1,178,939
Income taxes paid - - - - -
Other 225,016 230,641 242,318 257,131 272,850
Total cash used 3,661,477 3,592,868 3,581,334 3,384,169 3,345,349
Net cash from or (used by) operating activities 45,183 14,709 - - -
INVESTING ACTIVITIES          
Cash used          
Purchase of property, plant and equipment 200,563 147,448 118,505 114,802 117,860
Total cash used 200,563 147,448 118,505 114,802 117,860
Net cash from or (used by) investing activities (200,563) (147,448) (118,505) (114,802) (117,860)
FINANCING ACTIVITIES          
Cash received          
Appropriations - contributed equity 144,885 141,738 118,505 114,802 117,860
Total cash received 144,885 141,738 118,505 114,802 117,860
Cash used          
Dividends paid 400 - - - -
Total cash used 400 - - - -
Net cash from or (used by) financing activities 144,485 141,738 118,505 114,802 117,860
Net increase or (decrease) in cash held (10,895) 8,999 - - -
Cash at the beginning of the reporting period 31,584 19,857 28,856 28,856 28,856
Cash at the end of the reporting period 20,689 28,856 28,856 28,856 28,856

Prepared on Australia n Accounting Standards basis.

Table 3.2.4: Departmental statement of changes in equity — summary of movement
(Budget year 2014‑15)
  Retained
surpluses
$'000		 Asset
revaluation reserve
$'000		 Other reserves
$'000		 Contributed
equity/capital
$'000		 Total equity
$'000
Opening balance as at 1 July 2014          
Balance carried forward
from previous period		 (974,518) 101,553 - 973,575 100,610
Adjusted opening balance (974,518) 101,553 - 973,575 100,610
Transactions with owners          
Operating result after
extraordinary items		 (158,051) - - - (158,051)
Distribution to owners          
Returns on capital dividends - - - - -
Contribution by owners          
Appropriation (equity injection) - - - 25,943 25,943
Injection for departmental
capital budget		 - - - 115,795 115,795
Total transactions with owners (158,051) - - 141,738 (16,313)
Estimated closing balance
as at 30 June 2015		 (1,132,569) 101,553 - 1,115,313 84,297

Prepared on Australian Accounting Standards basis.

Table 3.2.5: Departmental capital budget statement
  Estimated
actual
2013‑14
$'000		 Budget
estimate
2014‑15
$'000		 Forward
estimate
2015‑16
$'000		 Forward
estimate
2016‑17
$'000		 Forward
estimate
2017‑18
$'000
NEW CAPITAL APPROPRIATIONS          
Capital budget - Bill 1 - DCB 105,923 115,795 109,962 110,431 115,906
Equity injections - Bill 2 38,962 25,943 8,543 4,371 1,954
Total new capital appropriations 144,885 141,738 118,505 114,802 117,860
Provided for:          
Purchase of non-financial assets 143,814 141,351 118,505 114,802 117,860
Other Items 1,071 387 - - -
Total Items 144,885 141,738 118,505 114,802 117,860
PURCHASE OF NON-FINANCIAL ASSETS          
Funded by capital appropriations 66,194 27,682 8,543 4,371 1,954
Funded by capital appropriation - DCB 105,923 115,795 109,962 110,431 115,906
Funded internally from departmental
resources		 28,446 3,971 - - -
TOTAL 200,563 147,448 118,505 114,802 117,860
RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE          
Total purchases 200,563 147,448 118,505 114,802 117,860
Total cash used to acquire assets 200,563 147,448 118,505 114,802 117,860

Prepared on Australian Accounting Standards basis.

Table 3.2.6: Statement of asset movements — departmental
  Buildings
$'000		 Other infrastructure,
plant and equipment
$'000		 Intangibles
$'000		 Total
$'000
As at 1 July 2014        
Gross book value 253,219 78,158 1,126,511 1,457,888
Accumulated depreciation/amortisation
and impairment		 52,221 17,259 629,306 698,786
Opening net book balance 200,998 60,899 497,205 759,102
Capital asset additions        
By purchase - appropriation equity - - 27,682 27,682
Own source revenue 3,971 - - 3,971
By purchase - appropriation ordinary
annual services		 61,531 2,541 51,723 115,795
Total additions 65,502 2,541 79,405 147,448
Other movements        
Depreciation/amortisation expense 46,463 11,060 100,528 158,051
Total other movements 46,463 11,060 100,528 158,051
As at 30 June 2015        
Gross book value 318,721 80,699 1,205,916 1,605,336
Accumulated depreciation/amortisation
and impairment		 98,684 28,319 729,834 856,837
Closing net book balance 220,037 52,380 476,082 748,499

Prepared on Australian Accounting Standards basis.

Table 3.2.7: Schedule of budgeted income and expenses administered on behalf of government
(for the period ended 30 June)
  Estimated
actual
2013‑14
$'000		 Budget
estimate
2014‑15
$'000		 Forward
estimate
2015‑16
$'000		 Forward
estimate
2016‑17
$'000		 Forward
estimate
2017‑18
$'000
EXPENSES ADMINISTERED
ON BEHALF OF GOVERNMENT		          
Subsidies 8,634,400 8,862,850 9,331,332 9,857,529 10,269,847
Personal benefits 370,700 367,000 379,000 393,000 404,000
Suppliers 5,690 284 31 31 -
Write down and impairment
of assets		 7,163,728 7,131,996 7,600,110 8,055,000 8,639,000
Finance costs 250,000 500,000 500,000 500,000 500,000
Other 468,300 472,800 507,900 517,200 506,900
Total expenses administered
on behalf of government		 16,892,818 17,334,930 18,318,373 19,322,760 20,319,747
LESS:          
OWN-SOURCE INCOME          
Own-source revenue          
Taxation revenue          
Income tax 250,169,000 271,218,000 293,504,000 314,486,000 335,551,000
Indirect tax 80,690,000 84,590,000 88,900,000 93,790,000 98,830,000
Other taxes, fees and fines 840,000 883,560 915,919 944,955 957,000
Total taxation revenue 331,699,000 356,691,560 383,319,919 409,220,955 435,338,000
Non-taxation revenue          
Fees and fines - - 6,500 - -
Other revenue 320,000 233,000 501,000 456,000 245,000
Total non-taxation revenue 320,000 233,000 507,500 456,000 245,000
Total own-source revenues
administered on behalf of Government		 332,019,000 356,924,560 383,827,419 409,676,955 435,583,000
Net Cost of (contribution by) services (315,126,182) (339,589,630) (365,509,046) (390,354,195) (415,263,253)
Surplus (Deficit) 315,126,182 339,589,630 365,509,046 390,354,195 415,263,253

Also refer note in section 3.2.4 on recognition of taxation revenue and Items recognised as reductions to taxation revenue.

Prepared on Australian Accounting Standards basis.

Table 3.2.8: Schedule of budgeted assets and liabilities administered on behalf of government
(as at 30 June)
  Estimated
actual
2013‑14
$'000		 Budget
estimate
2014‑15
$'000		 Forward
estimate
2015‑16
$'000		 Forward
estimate
2016‑17
$'000		 Forward
estimate
2017‑18
$'000
ASSETS ADMINISTERED ON
BEHALF OF GOVERNMENT		          
Financial assets          
Cash and cash equivalents 393,600 393,600 393,600 393,600 393,600
Receivables 19,988,860 22,282,864 24,820,754 27,330,754 29,927,754
Accrued revenues 11,042,000 11,842,000 12,592,000 13,217,000 13,862,000
Total financial assets 31,424,460 34,518,464 37,806,354 40,941,354 44,183,354
Total assets administered
on behalf of government		 31,424,460 34,518,464 37,806,354 40,941,354 44,18 3,354
LIABILITIES ADMINISTERED ON
BEHALF OF GOVERNMENT		          
Provisions          
Taxation refunds provided 2,741,595 2,741,595 2,741,595 2,741,595 2,741,595
Other provisions 966,605 994,605 1,314,605 1,539,805 1,510,205
Total provisions 3,708,200 3,736,200 4,056,200 4,281,400 4,251,800
Payables          
Subsidies 3,343,258 3,361,119 3,560,501 3,681,998 3,755,116
Personal benefits payable 528,566 397,866 407,366 422,366 435,366
Other payables 987,080 1,011,580 1,051,080 1,058,580 1,038,780
Total payables 4,858,904 4,770,565 5,018,947 5,162,944 5,229,262
Total liabilities administered on
behalf of government		 8,567,104 8,506,765 9,075,147 9,444,344 9,481,062
Net assets/(liabilities) 22,857,356 26,011,699 28,731,207 31,497,010 34,702,292

Also refer note in section 3.2.4 on Recognition of taxation revenue and Items recognised as reductions to taxation revenue.

Prepared on Australian Accounting Standards basis.

Table 3.2.9: Schedule of budgeted administered cash flows
(for the period ended 30 June)
  Estimated
actual
2013‑14
$'000		 Budget
estimate
2014‑15
$'000		 Forward
estimate
2015‑16
$'000		 Forward
estimate
2016‑17
$'000		 Forward
estimate
2017‑18
$'000
OPERATING ACTIVITIES          
Cash received          
Taxes 321,870,000 345,870,000 371,920,000 397,440,000 422,820,000
Other 833,000 800,460 1,303,119 1,177,955 742,000
Total cash received 322,703,000 346,670,460 373,223,119 398,617,955 423,562,000
Cash used          
Borrowing costs 520,000 500,000 500,000 500,000 500,000
Subsidies paid 8,073,611 8,844,989 9,131,950 9,736,032 10,196,729
Personal benefits 1,264,500 497,700 369,500 378,000 391,000
Payments to suppliers 5,690 284 31 31 -
Other 435,100 392,200 432,100 415,500 416,300
Total cash used 10,298,901 10,235,173 10,433,581 11,029,563 11,504,029
Net cash from or
(used by) operating activities		 312,404,099 336,435,287 362,789,538 387,588,392 412,057,971
FINANCING ACTIVITIES          
Cash received          
Cash from
Official Public Account		 10,298,901 10,235,173 10,433,581 11,029,563 11,504,029
Total cash received 10,298,901 10,235,173 10,433,581 11,029,563 11,504,029
Cash used          
Cash to
Official Public Account		 322,703,000 346,670,460 373,223,119 398,617,955 423,562,000
Total cash used 322,703,000 346,670,460 373,223,119 398,617,955 423,562,000
Net cash from or
(used by) financing activities		 (312,404,099) (336,435,287) (362,789,538) (387,588,392) (412,057,971)
Net increase or
(decrease) in cash held		 - - - - -
Cash at beginning of reporting period 393,600 393,600 393,600 393,600 393,600
Cash at end of reporting period 393,600 393,600 393,600 393,600 393,600

Prepared on Australian Accounting Standards basis.

Table 3.2.10: Schedule of administered capital budget

The ATO does not have any administered capital.

Table 3.2.11: Schedule of asset movements — administered

The ATO does not have any administered non‑financial assets.

3.2.4 Notes to the financial statements

Basis of accounting

The budgeted financial statements have been prepared on an accrual basis.

Notes to the departmental statements

The departmental financial statements, included in Tables 3.2.1 to 3.2.6 have been prepared on the basis of Australian Accounting Standards and Department of Finance and Deregulation guidance for the preparation of financial statements.

The budget statements and estimated forward years have been prepared to reflect the following matters.

Cost of administering goods and services tax

Departmental statements include the estimated costs of administering the GST pursuant to the 'intergovernmental agreement on the reform of Commonwealth‑State Financial Relations'. The GST revenue is collected on behalf of the States and Territories which agree to compensate the Australian Government for the agreed GST administration costs.

The recovery of GST administration costs are reported under the Treasury.

Notes to the administered statements

The administered financial statements included in Tables 3.2.7 to 3.2.9 have been prepared on the basis of Australian Accounting Standards and Department of Finance guidance for the preparation of financial statements.

The standards require that taxation revenues are recognised on an accrual basis when the following conditions apply:

  • the taxpayer or the taxpayer group can be identified in a reliable manner;
  • the amount of tax or other statutory charge is payable by the taxpayer or taxpayer group under legislative provisions; and
  • the amount of the tax or statutory charge payable by the taxpayer or taxpayer group can be reliably measured, and it is probable that the amount will be collected.

The amount of taxation revenue recognised takes account of legislative steps, discretion to be exercised and any refunds and/or credit amendments to which the taxpayers may become entitled.

Recognition of taxation revenue

Taxation revenue is recognised when the Government, through the application of legislation by the ATO and other relevant activities, gains control over the future economic benefits that flow from taxes and other statutory charges. This methodology, known as the Economic Transaction Method (ETM), relies on the estimation of probable flows of taxes from transactions which have occurred in the economy, but have not yet been reported, and are likely to be reported to the ATO through an assessment or disclosure.

However, in circumstances when there is an 'inability to reliably measure tax revenues when the underlying transactions or events occur', the accounting standards permit an alternative approach known as the Taxation Liability Method (TLM). Under this basis, taxation revenue is recognised at the earlier of when an assessment of a tax liability is made or payment is received by the ATO. This recognition policy means that taxation revenue is generally measured at a later time than would be the case if it were measured under the ETM method.

In accordance with the above revenue recognition approach, the ATO uses ETM as the basis for revenue recognition, except for income tax for individuals, companies and superannuation funds and superannuation surcharge which are recognised on a TLM basis.

Items recognised as reductions to taxation revenue

The following items are recognised as reductions (increases) to taxation revenue and not as an expense:

  • refunds of revenue; and
  • increase (decrease) in movement of provision for credit amendments.