Australian Taxation Office
Section 1: Overview, appropriations and budget measures summary
Agency overview
The role of the Australian Taxation Office (ATO) is to manage and shape taxation, excise and superannuation systems that fund services for Australians, giving effect to social and economic policy. Through these systems the ATO is the Commonwealth Government's principal revenue management agency. In 2003-04, the ATO will collect 89.3 per cent of the Commonwealth Government's revenue on behalf of the Australian community.
The ATO also supports the delivery of community benefits, having roles in other services, including:
- Private Health Insurance;
- Family Assistance;
- Valuation Services; and
- Cross-Agency Support, such as working with Centrelink to reduce benefit fraud, with the Child Support Agency (CSA) to ensure income transfer for the care of children, and with the Australian Bureau of Statistics (ABS) to reduce the cost to the community of collecting statistical data.
Appropriations and resourcing
The total appropriation for the ATO in the 2003-04 Budget is $6,917.7 million. Table 1.1 on the following page, shows the total appropriations by administered expenses, price of output appropriation and agency capital (equity injections and loans).
Table 1.2 details funding provided for new budget measures in 2003-04.
Australian Taxation Office - appropriations 2003-04
Table 1.1: Appropriations and other revenue
(1) C1, E1 and I1 refer to information provided in Table 2.1 Total resources for Outcome 1. K1 refers to Table 3.1 Budgeted Agency Statement of Financial Performance. K2 refers to Table 3.6 Note of Budgeted of Financial Performance Administered on behalf of the Government.
(2) Refer to Table 3.1, Budgeted Agency Statement of Financial Performance for application of agency revenue.
(3) Revenue from other sources includes other revenues from government (for example, resources received free of charge) and revenue from other sources (for example, goods and services by agencies such as the Australian Valuation Office (AVO)). Non-appropriated agency and administered revenues are detailed in Table 1.3.
(4) Estimated expenses from special appropriations are shown in Table 1.4.
Note: Percentage figures indicate the percentage contribution of revenues from government (agency appropriations) to the total price of outputs, by outcome.
Measures - Australian Taxation Office summary
Table 1.2: Summary of measures disclosed in the 2003-04 Budget
(1) This is a cross-portfolio measure. This table shows ATO's contribution to the measure. Further information can be found in the Prime Minister and Cabinet Portfolio Budget Statements.
(2) This is a cross-portfolio measure. This table shows ATO's contribution to the measure. Further information can be found in the Industry, Tourism and Resources Portfolio Budget Statements.
(3) This is a cross-portfolio measure. This table shows ATO's contribution to the measure. As the Department of Family and Community Services (FACS) is the leading agency, further information can be found in the FACS Portfolio Budget Statements.
Agency and administered revenues
Table 1.3: Agency and administered revenues
The ATO non-appropriation revenues are for services provided to other government entities, primarily sourced from the Australian Valuation Office (AVO), Child Support Agency (CSA) and the Department of Family and Community Services (FACS).
AVO charges for the provision of valuation services to the Commonwealth, state and local governments and operates within the Commonwealth Competitive Neutrality Principles. AVO's estimated receipts in 2003-04 total $18.4 million.
CSA was formerly within the ATO, they have subsequently been transferred to FACS. The ATO continues to provide CSA with a variety of services under a memorandum of understanding and several service level agreements with an estimated value of $24.7 million in 2003-04.
FACS - Family Assistance Office is a joint initiative of the ATO, Centrelink, and the Health Insurance Commission, with FACS having overall responsibility. The ATO assists with the administration and processing of claims made against the family assistance benefits. Receipts are estimated at $8.9 million in 2003-04.
The reduction in interest revenue is due to the discontinuation of the Agency Banking Incentive Scheme from 1 July 2003.
All of the ATO's revenue from independent sources is excluded from the definition of `Cost Recovery' for the purposes of the Commonwealth Cost Recovery Guidelines for Regulatory Agencies.
Special appropriations
Table 1.4: Estimates of expenses from special appropriations
Special accounts
Table 1.5: Estimates of special account flows and balances
(1) The opening balance for 2003-04 (reference A) is the same as the closing balance for 2002-03 (reference B).
(2) This special account is departmental in nature and is governed by the Financial Management and Accountability Act 1997.
(3) These special accounts are administered in nature and are governed by the Financial Management and Accountability Act 1997.
(4) This special account is administered in nature and is governed by the Superannuation Supervision Act 1995.
Note: Figures are cash based and include transactions between the Australian Valuation Office and the Australian Taxation Office.
Administered capital and equity injections and loans
The ATO will not receive an appropriation for an equity injection, loan or administered capital in 2003-04 Budget.