Home | Search | Site Map | Help

Australian Taxation Office

• Notes to the Financial Statements
• Cross Agency Overview

Section 3: Budgeted Financial Statements

The budgeted financial statements will form the basis of the financial statements that will appear in the Australian Taxation Office 2000-01 Annual Report, and for the input into the Whole of Government Accounts. The financial statements should be read in conjunction with the accompanying notes.

The financial statements are prepared consistent with GST accounting requirements, as outlined by the Urgent Issues Group (UIG) of the Australian Accounting Research Foundation. The UIG consensus requires that expenses and assets be accounted for net of recoverable GST, revenues be accounted for net of GST payable and that cash flows and accounts payable and receivable are reported gross. Appropriations are thus net of recoverable GST amounts.

Budget Statement of Revenues and Expenses (Budget Operating Statement)

This statement provides a picture of the expected financial results for the ATO by identifying full accrual expenses and revenues, which highlights whether the ATO is operating at a sustainable level.

Budget Statement of Assets and Liabilities (Budget Balance Sheet)

This statement shows the financial position of the ATO. It enables decision makers to track the management of the ATO's assets and liabilities.

Budget Cash Flow Statement

This statement identifies expected cash flows from operating activities, investing activities and financing activities.

Capital Budget Statement

This statement shows all proposed capital expenditure funded either through the Budget as appropriations or from internal sources.

Non-financial Assets - Summary of Movement

This statement shows the movement in the ATO's non-financial assets over the Budget year 2000-01.

Table 3.1: Agency Budget Statement of Revenues and Expenses
(for the period ended 30 June)

	Estimated Actual 1999-00 $'000	Budget Estimate 2000-01 $'000	Forward Estimate 2001-02 $'000	Forward Estimate 2002-03 $'000	Forward Estimate 2003-04 $'000
Operating revenue
Revenues from Government	1,657,012	1,713,118	1,604,390	1,566,054	1,546,439
Sales of goods and services	79,417	80,757	77,933	76,012	76,336
Interest	4,500	6,500	6,500	6,500	6,500
Total operating revenues (before abnormal items)	1,740,929	1,800,375	1,688,823	1,648,566	1,629,275
Operating expenses
Employees	1,046,036	1,165,271	1,087,166	1,001,721	995,012
Suppliers	597,491	602,919	498,194	521,488	498,908
Depreciation and amortisation	56,899	65,713	97,315	113,402	121,858
Interest	45	46	46	46	46
Total operating expenses	1,700,471	1,833,949	1,682,721	1,636,657	1,615,824
Operating surplus or deficit before abnormal and extraordinary items	40,458	-33,575	6,101	11,909	13,451
Operating surplus or deficit after abnormal and extraordinary items	40,458	-33,575	6,101	11,909	13,451
Capital use charge paid	-	2,746	8,315	11,723	12,475
Operating surplus or deficit after abnormal and extraordinary items and CUC	40,458	-36,320	-2,214	186	976

Table 3.2: Agency Budget Statement of Assets and Liabilities
(as at 30 June)

	Estimated Actual 1999-00 $'000	Budget Estimate 2000-01 $'000	Forward Estimate 2001-02 $'000	Forward Estimate 2002-03 $'000	Forward Estimate 2003-04 $'000
Assets
Financial assets
Cash	127,179	41,960	98,964	185,011	238,126
Receivables	13,392	16,309	15,857	15,550	15,601
Accrued revenues	2,354	2,354	2,354	2,354	2,354
Lease incentives provided	2,780	2,520	1,791	1,375	1,145
Other	398	5,906	5,331	5,165	4,906
Total financial assets	146,103	69,049	124,297	209,455	262,132
Non-financial assets
Land and buildings	1,467	1,464	1,461	1,458	1,455
Infrastructure, plant and equipment	125,148	161,657	145,313	141,212	122,201
Intangibles	105,684	173,756	202,838	170,993	161,144
Other	14,031	14,240	14,449	14,658	14,867
Total non-financial assets	246,329	351,117	364,061	328,321	299,665
Total assets	392,433	420,166	488,358	537,776	561,799
Liabilities
Debt
Loans	500	500	500	500	500
Leases	40,027	27,320	16,083	10,357	6,024
Total debt	40,527	27,820	16,583	10,857	6,524
Provisions and payables
Employees	310,689	323,317	356,290	383,057	410,328
Suppliers	41,009	40,960	40,960	40,960	40,960
Total provisions and payables	351,698	364,277	397,250	424,017	451,288
Total liabilities	392,225	392,097	413,833	434,874	457,812
Equity
Capital	120,532	179,08/8	222,133	244,700	244,808
Reserves	6,455	12,080	17,705	23,330	23,330
Accumulated surplus or deficit	-126,779	-163,099	-165,313	-165,128	-164,151
Total equity	208	28,069	74,525	102,902	103,987

Table 3.3: Agency Budget Cash Flow Statement
(for the period ended 30 June)

	Estimated Actual 1999-00 $'000	Budget Estimate 2000-01 $'000	Forward Estimate 2001-02 $'000	Forward Estimate 2002-03 $'000	Forward Estimate 2003-04 $'000
Operating activities
Cash received
Appropriations for outputs	1,657,012	1,713,118	1,604,390	1,566,054	1,546,439
Sales of goods and services	52,734	78,130	78,665	76,581	76,569
Interest	4,500	6,500	6,500	6,500	6,500
Other	-	-	5,508	4,933	4,767
Total cash received	1,714,246	1,797,748	1,695,063	1,654,068	1,634,275
Cash used
Employees	1,020,110	1,155,151	1,056,018	975,678	969,137
Suppliers	604,326	620,629	513,890	531,890	507,774
Other	100	-	-	-	-
Total cash used	1,624,536	1,775,780	1,569,908	1,507,498	1,476,911
Net cash from operating activities	89,710	21,968	125,155	146,570	157,364
Investing activities
Cash received
Proceeds from sales of property, plant and equipment	19,008	-	-	-	-
Total cash received	19,008	-	-	-	-
Cash used
Purchase of PP&E and Intangibles	106,963	162,862	102,780	71,263	91,774
Total cash used	106,963	162,862	102,780	71,263	91,774
Net cash from investing activities	-87,955	-162,862	-102,780	-71,263	-91,774
Financing activities
Cash received
Capital injections	117,991	58,421	42,944	22,463	-
Total cash received	117,991	58,421	42,944	22,463	-
Cash used
Capital use and dividends paid	-	2,746	8,315	11,723	12,475
Total cash used	-	2,746	8,315	11,723	12,475
Net cash from financing activities	117,991	55,675	34,629	10,740	-12,475
Net increase in cash held	119,746	-85,219	57,004	86,047	53,115
Cash at the beginning of the reporting period	7,433	127,179	41,960	98,964	185,011
Cash at the end of the reporting period	127,179	41,960	98,964	185,011	238,126

Table 3.4: Agency Capital Budget Statement (for the period ended 30 June)

	Estimated Actual 1999-00 $'000	Budget Estimate 2000-01 $'000	Forward Estimate 2001-02 $'000	Forward Estimate 2002-03 $'000	Forward Estimate 2003-04 $'000
Capital appropriations
Total equity injections	93,731	58,421	42,944	22,463	-
Total loans	-	-	-	-	-
Appropriation of previous year's carryover	19,822	4,438	-	-	-
Represented by
Purchase of non-current assets	113,553	62,859	42,944	22,463	-
Other	-	-	-	-
Total	113,553	62,859	42,944	22,463	-
Purchase of non-financial assets
Funded by capital appropriations	113,553	62,859	42,944	22,463	-
Funded internally by agency resources	-	107,433	67,106	54,991	92,993
	113,553	170,292	110,050	77,454	92,993

Table 3.5: Agency Non-financial Assets - Summary of Movement

	Land $'000	Buildings $'000	Total Land and Buildings $'000	Other Infrastructure, Plant and Equipment $'000	Total Infrastructure, Plant and Equipment $'000	Intangibles $'000	Total $'000
Gross value
As at 1 July 2000 (opening)	709	800	1,509	336,720	336,720	151,099	489,328
Additions	-	-	-	65,027	65,027	99,842	164,869
Disposals	-	-	-	-	-	-	-
Other movements	-	-	-	5,625	5,625	-	5,625
As at 30 June 2001 (closing)	709	800	1509	407,372	407,372	250,941	659,822
Accumulated depreciation
As at 1 July 2000 (opening)	-	42	42	211,572	211,572	45,415	257,029
Disposals	-	-	-	-	-	-	-
Charge for the reporting period	-	3	3	34,143	34,143	31,770	65,916
Other movements	-	-	-	-	-	-	-
As at 30 June 2001 (closing)	-	45	45	245,715	245,715	77,185	322,945
Net book value as at 30 June 2001 (Closing book value)	709	755	1,464	161,657	161,657	173,756	336,877
Net book value as at 1 July 2000 (Opening book value)	709	758	1,467	125,148	125,148	105,684	232,299

Total additions

Self funded	-	-	-	53,930	53,930	48,080	102,010
Appropriations	-	-	-	11,097	11,097	51,762	62,859
Total	-	-	-	65,027	65,027	99,842	164,869

Table 3.6: Statement of Administered Revenues and Expenses

	Estimated Actual 1999-00 $'000	Budget Estimate 2000-01 $'000	Forward Estimate 2001-02 $'000	Forward Estimate 2002-03 $'000	Forward Estimate 2003-04 $'000
Operating revenues
Taxation
Income tax	112,617,038	112,781,068	116,471,069	123,752,655	133,594,284
Other indirect tax	16,550,769	2,057,712	833,000	877,000	903,000
GST (a)	-	24,052,566	28,029,178	29,083,285	30,737,235
Fringe Benefits Tax	3,640,000	3,980,000	4,210,000	4,350,000	4,490,000
Excise	19,946,189	20,206,680	20,807,300	21,595,469	22,372,407
Total taxation	152,753,996	162,928,026	170,350,547	179,658,409	192,096,926
Non-taxation
Revenues from government	1,720,200	2,898,646	3,192,325	3,360,183	3,503,055
Other sources of non-taxation revenues	469,400	525,000	467,100	442,000	442,000
Total non-taxation	2,189,600	3,423,646	3,659,425	3,802,183	3,945,055
Total operating revenues	154,943,596	166,351,672	174,009,972	183,460,592	196,041,981
Operating expenses
Interest	120,000	120,000	120,000	120,000	120,000
Net writedown of assets	627,000	557,000	591,000	610,000	651,000
Benefits & subsidies	1,560,000	2,738,446	3,032,125	3,199,983	3,342,855
Other	40,200	40,200	40,200	40,200	40,200
Total operating expenses	2,347,200	3,455,646	3,783,325	3,970,183	4,154,055
Net contribution or cost to the budget outcome	152,596,396	162,896,026	170,226,647	179,490,409	191,887,926
Transfers to the official public account	-151,280,411	-158,972,426	-171,979,281	-181,144,409	-192,186,926
Net surplus or deficit	1,315,985	3,923,600	-1,752,634	-1,654,000	-299,000

(a) The GST revenue collected by the Commonwealth is passed in full to the States and Territories. This is recorded as negative revenue in the Department of the Treasury's financial statements representing the payment of GST revenue to the States. (For further information see Page 38 in the Department of the Treasury's notes to the financial statements).

Table 3.7: Statement of Administered Assets and Liabilities

	Estimated Actual 1999-00 $'000	Budget Estimate 2000-01 $'000	Forward Estimate 2001-02 $'000	Forward Estimate 2002-03 $'000	Forward Estimate 2003-04 $'000
Assets
Financial assets
Cash	200,000	200,000	200,000	200,000	200,000
Receivables	5,776,478	9,700,078	7,947,444	6,293,444	5,994,444
Investments	2,541	2,541	2,541	2,541	2,541
Total financial assets	5,979,019	9,902,619	8,149,985	6,495,985	6,196,985
Total assets	5,979,019	9,902,619	8,149,985	6,495,985	6,196,985
Liabilities
Other	209,997	209,997	209,997	209,997	209,997
Total provisions and payables	209,997	209,997	209,997	209,997	209,997
Total liabilities	209,997	209,997	209,997	209,997	209,997
Accumulated surplus or deficits	5,769,022	9,692,622	7,939,988	6,285,988	5,986,988
Total equity	5,769,022	9,692,622	7,939,988	6,285,988	5,986,988
Current liabilities	209,997	209,997	209,997	209,997	209,997
Non-current liabilities	-	-	-	-	-
Current assets	5,979,019	9,902,619	8,149,985	6,495,985	6,196,985
Non-current assets	-	-	-	-	-

Table 3.8: Administered Cash Flow Statement

	Estimated Actual 1999-00 $'000	Budget Estimate 2000-01 $'000	Forward Estimate 2001-02 $'000	Forward Estimate 2002-03 $'000	Forward Estimate 2003-04 $'000
Operating activities
Cash received
Taxes, fees and fines	150,846,996	158,070,026	171,512,181	180,702,409	191,744,926
Appropriations	1,720,200	2,898,646	3,192,325	3,360,183	3,503,055
Other	92,000	902,400	467,100	442,000	442,000
Total cash received	152,659,196	161,871,072	175,171,606	184,504,592	195,689,981
Cash used
Cash to official public account	151,280,411	158,972,426	171,979,281	181,144,409	192,186,926
Other	1,720,200	2,898,646	3,192,325	3,360,183	3,503,055
Total cash used	153,000,611	161,871,072	175,171,606	184,504,592	195,689,981
Net cash from operating activities	-341,415	-	-	-	-
Net increase in cash held	-341,415	-	-	-	-
Cash at beginning of reporting period	541,415	200,000	200,000	200,000	200,000
Cash at end of reporting period	200,000	200,000	200,000	200,000	200,000

Notes to the Financial Statements

Notes to the Agency Statements

Details of Agency items in the financial statements included in Table 3.1 to 3.5 have been prepared in accordance with Schedule 2 of the Finance Minister's Orders for 1997-98.

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

Cost of Administering Goods and Services Tax

Agency statements for 2000-01 and forward years include the estimated costs of administering the proposed Goods and Services Tax on behalf of the States and Territories of Australia.

Costs of Administering Other Tax Reform Proposals

Agency statements for 2000-01 and forward years include a cost estimated for taxation reform proposals announced by the Government as part of A New Tax System or the result from the Government's response to the recommendations made by the Review of Business Taxation.

Notes to the Administered Statements

Details of Administered items in the financial statements included in Table 3.6 to 3.8 have been prepared in accordance with Schedule 2 of the Finance Ministers Orders for 1997-98. These statements incorporate a change in revenue recognition policy from prior years with no effect on the accumulated result.

The budget statements and forward years have been prepared on the basis noted below and to reflect the following matters.

Recognition of Taxation Revenue

For 1999-2000, 2000-01 and forward years administered taxation revenue has been brought to account on a year by year basis where:

• the identity of the taxpayer is certain;


• the amount of the liability or refund is certain;


• the liability or entitlement to a refund has been notified to the Commissioner or advised by the taxpayer;


• there is an intention on the part of the Commissioner to collect the liability; and


• there is a legislative intent by the Commonwealth to change the basis or application of taxation law.

This recognition policy does not include the following item as revenue of the period:

• estimates of future collections or refunds from individuals in respect of income tax returns to be lodged for the current financial year ended at 30 June;


• estimates of instalments of tax and final payments for companies due after 30 June;


• estimates of final amounts for Petroleum Rent Resource Tax due after 30 June; and


• actual payments for Pay As You Earn, Pay As You Go, Wholesale Sales Tax, Goods and Services Tax, Excise, Prescribed Payments and Withholding Taxes for amounts collected or withheld in June but not remitted to the Commissioner until July.

Items Recognised as Reductions to Taxation Revenue

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

• refunds of revenue; and


• increase (decrease) in movement of provision for credit amendments.

Cross Agency Overview

For 2000-01 the ATO is entering into purchaser/provider arrangements with both the Department of Family and Community Services and the Department of Health and Aged Care which will see the ATO continuing to provide services to each of these departments to enable them to achieve their stated Outcomes.

The ATO will be providing services to the Department of Family and Community Services for the Family Assistance Office and the Child Support Agency.

The ATO will also be providing services to the Department of Health and Aged Care for the implementation of the Private Health Insurance Rebate.

Appendix 1

Non-appropriation Departmental and Administered Revenue

	Estimated Actual 1999-00 $'000	Budget Estimate 2000-01 $'000
External agency revenue	83,917	87,527
Total taxation revenue	152,753,996	162,928,026
Superannuation Guarantee (Administration) Act 1992 - shortfalls penalties and fines	80,000	80,000
Miscellaneous receipts	12,000	12,000
Superannuation Guarantee (Supervision) Act 1993 - Unclaimed moneys	200	200
GST administration charged to States	377,400	433,000
Total estimated revenue	153,307,513	163,540,753

Appendix 2

Estimates of Expenses from Special Appropriations

	Estimated Actual 1999-00 $'000	Budget Estimate 2000-01 $'000
Refunds of Receipts - Taxation Administration Act 1953	10,890,000	11,169,802
Less amount of refunds deducted from receipts items	-10,890,000	-11,169,802
Diesel fuel rebate	1,560,000	1,991,601
Conversion of diesel fuel credit scheme to diesel and alternative fuels grants scheme	-	622,145
Assistance for cellar door and mail order sales of wine	-	14,700
Fuels sales grants scheme	-	110,000
Superannuation Guarantee (Administration) Act 1992 - Distribution of Charges	40,000	40,000
Superannuation Guarantee (Supervision) Act 1993 - Repayments of unclaimed moneys	200	200
Taxation Administration Act 1953 - Taxation (interest on overpayments and early payments) Act 1983	120,000	120,000
Total estimated expenses	1,720,200	2,898,646