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Australian Taxation Office

• Outcomes and Output Groups
• Changes to Outcomes and Outputs
• Outcome 1
• Measures Affecting Outcome 1
• Outcome 1 - Resourcing
• Outcome 1 - Contribution of Outputs
• Performance Information for Outcome 1

Section 2: Outcomes and Outputs Information

Outcomes and Output Groups

The map on the following page shows the relationship between Government outcomes and the contributing outputs for the ATO. Financial detail for Outcome 1 by output appears in Table 2.1 while non-financial information for Outcome 1 appears in Table 2.2.

Changes to Outcomes and Outputs

There are no proposed changes in outcomes or outputs since the previous year.

Outcome 1

Effectively managed and shaped systems that support and fund services for Australians and give effect to social and economic policy through the tax system

There is a single Government outcome relating to the ATO which is `effectively managed and shaped systems that support and fund services for Australians and give effect to social and economic policy through the tax system'.

In this context, `effectively managed and shaped' means how well the ATO manages and shapes:

• compliance;


• costs of compliance; and


• community confidence;

within the taxation, excise and superannuation systems while doing so as an efficient and adaptive organisation.

Measures Affecting Outcome 1

Business Tax Reform- Expense

The Government will provide the Australian Taxation Office (ATO) with funding to meet the administrative and systems costs for implementing the Business Taxation Reform measures including an additional $20 million in 1999-2000 to assist business to implement the new arrangements. This funding will assist the ATO in designing and developing legislation, along with the development of its business processes which flow from the implementation of the Government's business tax reforms. It will also be used to train ATO staff in the new policy, law and work procedures.

This is a cross agency measure between the Australian Taxation Office and the Department of the Treasury.

Business Tax Reform - Capital

The Government will provide the Australian Taxation Office (ATO) with a capital injection to meet the costs of developing the necessary information technology systems required to implement the Business Taxation Reform measures. A range of ATO business processes and computer systems will need to be redeveloped, including significant changes to many of the ATO's major mainframe computer systems such as Electronic Lodgement Service and the National Taxpayer System which generates income tax assessments.

The Review of Business Taxation led by Mr John Ralph AO titled A Tax System Redesigned (the Report), was released to the public on 21 September 1999. The Government's response was announced in two stages on 21 September 1999 and 11 November 1999. The reforms arising from this Report will be implemented primarily by the ATO.

Administration of the Fuels sales grants scheme - Expense

From 1 July 2000 the Government will introduce a tiered grants scheme which will be paid to retailers of petrol and diesel in non-metropolitan and remote regions. This scheme will be administered by the Australian Taxation Office. Funding under this measure will contribute towards staffing and other implementation costs. The Government has provided the ATO with an additional $3.2 million in 1999-2000 to implement the scheme.

Administration of the Fuels sales grants scheme - Capital

From 1 July the Government will introduce a tiered grants scheme which will be paid to retailers of petrol and diesel. This scheme will be administered by the Australian Taxation Office.

The Government will provide the Australian Taxation Office with funding for computer software and systems development for the administration of the Fuels sales grants scheme. This funding includes $5.2 million in 1999-2000.

Fuels sales grants scheme - Administered Expense

From 1 July 2000 the Government will introduce a tiered grants scheme which will be paid to retailers of petrol and diesel. A grant will be paid for sales to consumers in non-metropolitan areas with a higher rate of grant provided for sales in remote areas. Petrol and diesel prices are generally higher in non-metropolitan and remote areas compared with metropolitan areas. The grants scheme will help address the divergence in fuel prices between the cities and regional areas.

As part of the A New Tax System package, the Government will also reduce excise on petrol and diesel so the pump price of these commodities for consumers need not rise. Taken together, these measures will ensure that the Government's commitment that the price of petrol for consumers need not rise as a result of the introduction of the GST is met.

The Government will continue to monitor fuel prices in the lead up to 1 July 2000 to set the grants rate. Further details on the exact entitlement to the grant scheme along with the grant breaks will be announced before 1 July 2000 and will be prescribed in regulations to the legislation.

Outcome 1 - Resourcing

Table 2.1 shows how the 2000-01 appropriations translate to total resourcing for Outcome 1.

Table 2.1: Total Resources for Outcome 1

	Estimated Actual	Budget Estimate
	1999-00 ($'000)	2000-01 ($'000)
Administered appropriations
Special appropriations	1,720,200	2,898,646
Total administered expenses	1,720,200	2,898,646
Agency appropriations Output group 1.1
Output 1.1.1 - Contribute to policy advice and legislation	86,544	89,768
Output 1.1.2 - Provide revenue	1,437,371	1,532,885
Output 1.1.3 - Provide transfers	87,132	89,850
Output 1.1.4 - Support other agencies	89,424	87,872
Subtotal output group 1.1	1,700,471	1,800,375
Total revenue from Government (appropriations) contributing to price of agency outputs	1,657,012 97.4%	1,713,118 95.2%
Revenue from other sources
Output 1.1.1 - Contribute to policy advice and legislation	1,700	1,700
Output 1.1.2 - Provide revenue	-	-
Output 1.1.3 - Provide transfers	12,874	17,855
Output 1.1.4 - Support other agencies	69,343	67,702
Total revenue from other sources	83,917	87,257
Total price of agency outputs (Total revenue from Government and from other sources)	1,740,929	1,800,375
Total estimated resourcing for outcome 1 (Total price of outputs and admin expenses)	3,461,129	4,699,021

	1999-00	2000-01
Average staffing levels (number)	15,111	18,355

 

 

Note: Special Administered Appropriations are itemised at Appendix 2. The Australian Valuation Office, formerly reported under the Commercial Activities Fund, is included in Output 1.1.4.

Outcome 1 - Contribution of Outputs

Justification for the choice of the outputs to achieve Outcome 1 is described in Table 2.2 below. The table provides information on the measures chosen to deliver Outcome 1, and shows the links between the outputs and the outcome.

There are four distinct outputs that contribute to Outcome 1:

• Contribution to policy advice and legislation supports the formulation of effective taxation policy and the reflection of that policy in legislation and includes provision of Ministerial and Parliamentary Services;


• Revenue contributes to effective taxation arrangements through managing and shaping taxation systems that collect taxation revenue effectively and efficiently which, in turn, maintains community confidence in the taxation system;


• Transfers effect the movement of money to support government redistribution and savings initiatives such as Retirement Income and Family Initiatives; and


• Cross agency support provides services, such as data matching and the provision of statistical information to other agencies (not involving moneys).

Performance Information for Outcome 1

Table 2.2: Performance Information 2000-01
Effectiveness - Overall achievement of the outcome
Deliver to Government
Agreed outputs	Quantity, quality and cost measures for: - Contribution to policy advice and legislation; - Revenue; - Transfers; and - Cross Agency Support. See next page for details.
Maintain overall compliance	Collection of budgeted revenue; Develop and implement maintenance strategies in a range of compliance areas while targeting improvements in `hot spots'; Target and integrate compliance activities; Embed compliance with GST and use intelligence to support other compliance activities; Maintain Superannuation Guarantee compliance activities; and Enter into co-operative arrangements with other agencies for cross agency support and transfers.
Tax design capability	Build an end-to-end capability which integrates the policy, legislative and administrative aspects of systems design.
Tax Reform	Educate and support the community in getting ready for tax reform; Co-design new tax systems with key stakeholders; and Tax reform is effectively implemented on time.
Maintain community confidence	Leverage community understanding of ATO and the tax system; and Meeting ATO commitments in the Taxpayers' Charter to deliver fair and equitable administration of the law.
Minimise compliance costs	Minimise client compliance costs (within the ATO's control); and Advise Government of the cost of compliance impact of legislative design.
Efficient, adaptive organisation	Manage financial resources and investments to build an efficient and adaptive ATO; Deliver quality products and services to internal customers; Excel at those processes that are key to achieving ATO goals and ouputs; and Continue to learn, and develop our people, culture, supporting systems and a safe workingplace.

Table 2.2: Performance Information 2000-01 (continued)
Performance information for agency outputs
Output group 1.1 - Australian Taxation Office
Output 1.1.1 - Contribution to policy advice and legislation Includes conducting strategic research/risk assessment Provide policy advice, design and develop legislation Provide Ministerial and Parliamentary Services.	Quantity Measures Capacity to predict and manage risks; legislation delivered according to government programmes; costings/estimates delivered to anticipated volume; and volume of services delivered.
	Quality Measures Strategic intelligence - no significant risks remain unaddressed; quality of legislation including consistency with policy, legislation and administration principles; accuracy of revenue estimates - current standard maintained; and client satisfaction with services provided.
Output 1.1.2 - Revenue Includes Direct Revenue which includes Gross PAYG, Medicare Levy, Individual refunds, companies superannuation funds (including Superannuation Contributions Surcharge), withholding taxes, petroleum resource rent tax and Fringe Benefits Tax. Indirect Revenue includes Sales Tax(a) (including Alcohol Surcharge), Excise, GST, Wine Equalisation Tax and Luxury Car Tax.	Quantity Measures Tax collected as a percentage of estimate - current standard maintained. Quality Measures Percentage of tax collected on time - current standard maintained, the level of overdue debt as a percentage of total collectable debt is reduced, technical quality of advice maintained, Charter service standards maintained, improved professionalism in field operations and debt collection and maintenance of community confidence.
Output 1.1.3 - Transfers Includes all movement of moneys (value) that are not classed as Revenue including tax expenditures, diesel fuel rebate, Family Assistance Initiatives (Private Health Insurance, Family Tax Benefit and Aged Persons Savings Bonus), HECS, Retirements Incomes Framework (including Compulsory Super, SHAR, Choice, Lost Members), Self Managed Super Funds , refund garnishees - transfers for example, Centrelink, DETYA and the CSA; and wool tax.	Quantity Measures Monetary value of expenditure, outlay, transfers, refunds, number of obligated employers and the number of funds regulated (from 2000-01). Quality Measures As for revenue (same measure), Charter service standards maintained, technical quality maintained and achievement of measures as specified in MOUs with other agencies.

Table 2.2: Performance Information 2000-01 (continued)
Performance information for agency outputs
Output 1.1.4 - Cross Agency Support Includes services to other organisations that do not involve movement of moneys (administered funds). Includes the transfer of statistical information, data matching, information to law enforcement agencies, tax technical advice to other Government agencies, support for tax agents board and CSA.	Quantity Measures Quantity of output is as determined by agreement with clients and measures as specified in MOUs with other agencies. Quality Measures Measures as specified in MOUs with other agencies.

(a) To be abolished 1 July 2000.

Evaluations

The Australian National Audit Office (ANAO) and ATO Internal Audit have a rolling program of issues that are audited during the financial year. Other issues are evaluated within the ATO during the financial year as required.

Competitive Tendering and Contracting

The ATO has continued with its Competitive Tendering and Contracting process across a wide range of its activities. Savings anticipated from the outsourcing of the ATO's information technology infrastructure have been factored into the price that Government is paying for ATO outputs. As part of the ATO's Performance Improvement and CTC strategy, functions continue to be benchmarked and expenditure reduced to benchmark levels. These other functions include data capture and management, provision of technical advice and audit, property services and regional copying and forms storage and distribution.