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 Australian Government’s principal revenue management agency. In 2004-05, the ATO will collect 89.4 per cent of the Australian Government’s revenue on behalf of the Australian community.

The main role of the ATO is to administer legislation for taxes, superannuation and excise (but not customs duty). In doing this, the ATO address broad issues affecting Australia’s revenue system, such as aggressive tax planning, persistent tax debtors, globalisation and the cash economy.

The ATO also supports the delivery of community benefits, having roles in other services, including:

• Private Health Insurance;
• Family Assistance;
• Energy Grants Credits Scheme;
• 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 2004-05 Budget is $7,907.9 million. Table 1.1 on the following page, shows the total appropriations by administered expenses, price of output appropriation and agency capital (appropriation for previous years’ outputs).

Table 1.2 details funding provided for new budget measures in 2004-05.

Australian Taxation Office — appropriations 2004-05

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 and K2 refer to information provided in Table 3.1, Budgeted Agency Statement of Financial Performance and Table 3.6, Note of Budgeted Financial Performance Administered on behalf of the Government, respectively. K3 refers to information provided in Table 3.4, Agency Capital Budget Statement.
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 and revenue from other sources. Non-appropriated agency and administered revenues are detailed in Table 1.3.
4. Estimated expenses from special appropriations are shown in Table 1.5. The amount showing for special appropriations represents appropriations to deliver ATO programmes. Amounts disclosed under special appropriations do not include the expenditures to pay refunds under the tax system.

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 2004-05 Budget

Table 1.2: Summary of measures disclosed in the 2004-05 Budget (continued)

Table 1.2: Summary of measures disclosed in the 2004-05 Budget (continued)

Agency and administered revenues

Table 1.3: Agency and administered revenues

Note: The amount showing for administered appropriation revenue represents appropriations to deliver ATO administered programmes and benefits. This amount does not include expenditures against appropriations to pay taxation refunds. Total taxation revenue is shown net of taxation refunds.

The ATO’s non-appropriation revenues are for services provided to other government entities, primarily sourced from the Australian Valuation Office (AVO) services, Child Support Agency (CSA) and the Department of Family and Community Services (FACS).

AVO charges for the provision of valuation services to the Australian, state and local governments and operates in accordance with Commonwealth Competitive Neutrality Principles. AVO’s estimated receipts in 2004-05 total $18.9 million (excluding services provided to the ATO).

As a result of the Administrative Arrangement Orders (AAOs) in October 1998, CSA was transferred from the ATO to FACS. Under a memorandum of understanding and several service level agreements, the ATO continues to provide CSA with a variety of services, predominantly information technology and accommodation, with an estimated value of $19.9 million in 2004-05. Future periods will see a decline in the non-appropriation revenue derived from CSA as services provided by the ATO are reduced.

The 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 2004-05.

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 1.5: Estimates of expenses from special appropriations

Note: The total amount showing for special appropriations differs to the $5,568.7 million shown in Tables 1.1, 1.3, 2.1, and 3.6 as it includes appropriations for tax refunds. In other tables taxation refunds are netted off against the tax revenue. Refunds under section 16 of the Tax Administration Act 1953 are primarily taxation refunds but may include amounts for the First Child tax offset; the Private Health Insurance Benefit and interest on overpayments.

Special accounts

Table 1.6: Estimates of special account flows and balances

1. The opening balance for 2004-05 (reference A) is the same as the closing balance for 2003-04 (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 agency equity injections and loans

The ATO will receive an appropriation for Previous Years’ Outputs of $9.6 million in the 2004-05 Budget.

The ATO will not receive an appropriation for an equity injection, loan or administered capital in 2004-05 Budget.

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