Treasury Portfolio Budget Statements 2008-09 - ATO - Section 2: Outcomes and planned performance

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Section 2: Outcomes and planned performance

2.1 Outcomes and performance information

The Australian Government requires agencies to measure their intended and actual performance in terms of outcomes. Government outcomes are the results, impacts or consequences of actions by the Government on the Australian community. Agencies are required to identify the output groups which demonstrate their contribution to Government outcomes over the coming year.

The ATO's outcome is described below by output groups, specifying the performance indicators and targets used to assess and monitor the performance of the ATO in achieving Government outcomes.

2.1.1 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, superannuation, excise and other related systems

Outcome 1 strategy

The ATO manages revenue through a range of collection systems, including income tax, GST, superannuation guarantee and excise (but not customs duty). It also administers a range of benefits, subsidies and refunds, including income tax and GST refunds, excise grants, superannuation co-contributions and fuel tax credits.

The ATO also addresses broader issues affecting Australia's revenue systems, such as aggressive tax planning, persistent tax debtors, globalisation and the cash economy.

The ATO also administers significant aspects of Australia's superannuation system as well as having responsibility for the Australian Business Register.

The ATO further supports the delivery of community benefits, with roles in other areas such as private health insurance, family assistance, valuations and other cross‑agency support.

The ATO will contribute to the achievement of its outcome by focusing its activities on delivering relevant policies and strategies under each of its five output groups.

The ATO's Corporate Plan 2008‑09 outlines key priorities for the coming year and identifies those initiatives that have a multi-year focus which support contribution to the outcome over the longer term. The plan includes strategic and capability areas of focus for the year. These support the Strategic Statement 2006-10, guide on—going change agenda and assist in identifying opportunities for business productivity improvements. As a values-based agency, the ATO maintains trust and community confidence by demonstrating values in delivering its outcome and outputs.

As an open and accountable administration, the ATO publishes specific commitments, strategies and targets in key corporate documents such as the Taxpayers' Charter, Making It Easier to Comply and the Compliance Program. In doing this, the ATO assures Government and the community that the tax and superannuation systems are being effectively and efficiently managed and administered.

Outcome 1 resource statement

Table 2.1 provides additional detail of budget appropriations and the total resourcing for outcome 1.

Table 2.1: Total resources for outcome 1

Table 2.1: Total resources for outcome 1 (continued)

Note: Departmental splits, by output, are indicative estimates and may change in the course of the budget year as government priorities change.

Contributions to outcome 1

Outcome categories	Outcome effectiveness indicators
Deliver to government.	Revenue collections as a per cent of budgeted revenue. Actual transfers as a per cent of budgeted transfers. Implementing new policy measures efficiently and effectively.
Maintain community confidence.	Maintain performance against Taxpayers' Charter: external survey results; corporate service standards; technical quality assurance; and complaints.
Improve ease of compliance.	Take up rate of new or improved products, services and channels. External survey results.
Efficient, ethical and adaptive organisation.	Manage the ATO within budget. Sound governance system. Capable and engaged workforce.
Output group 1.1 — Australian Taxation Office
Components of output group 1.1 are: Output 1.1.1 — Shape, design and build administrative systems; Output 1.1.2 — Management of revenue collection and transfers; Output 1.1.3 — Compliance assurance and support — revenue collection; Output 1.1.4 — Compliance assurance and support for transfers and regulation of superannuation funds compliance with retirement; and Output 1.1.5 — Services to governments and agencies
Output 1.1.1 — Shape, design and build administrative systems
Output 1.1.1 reflects the ATO's role in effectively shaping, designing and building administrative systems to give effect to the legislation the ATO administer. This output involves: providing advice on the administrative, compliance and interpretive aspects of the laws administered by the ATO in relation to new government policy, including advice on costings, modelling and revenue forecasting; identifying, developing or enhancing business practices and processes within the ATO to implement new law or internal initiatives related to administering relevant laws; and providing advice to the Treasury in areas where relevant laws do not operate in accordance with the policy intent, or where compliance costs are higher than expected.
Key performance indicators	2008‑09 target
The ATO's contribution to the shape of new tax and superannuation policy and law.	The Treasury is satisfied with ATO input to new tax and superannuation policy and law design processes, as per the agreed ATO‑Treasury protocol.
Administrative systems are in place, and support products are provided for, taxpayers and their advisors.	Administrative systems are in place, and support products are provided, on time and on budget for the implementation of new tax laws.
Implementation of the easier cheaper and more personalised program — the ATO's transformational change program.	The program is implemented in accordance with the agreed intent and outcomes enabling delivery of promised improved user experience. The program is implemented in accordance with agreed schedule and costs, subject to other priorities. ATO evaluates the alignment of the program to progress or support strategic business outcomes.
Output 1.1.2 — Management of revenue collection and transfers
Output 1.1.2 reflects the ATO's role in managing client contact, revenue collections and payments made to taxpayers and others. The ATO facilitate dealings with the taxpayer as they: enter the tax and other systems the ATO administer through the appropriate registrations; receive and provide the required information; make payments; receive refunds or other payments, or are notified of their obligations; and engage with the ATO in relation to outstanding obligations and any remedial action taken.
Key performance indicators	2008‑09 target
Management of revenue collections and payments.	Revenue collected (comparative results to previous year/s performance): dollar value of revenue collected; number of products processed; and number of payments processed. Payments made (comparative results to previous year/s performance): dollar value of revenue transferred; number of refunds issued; and number of accounts managed.
Management of registrations.	Comparative results to previous year/s performance: number of Registrar registrations processed; number of Commissioner of Taxation registrations processed; number of Registrar related updates; and number of Commissioner of Taxation related updates.
Management of client contact.	Comparative results to previous year/s performance: number of information products delivered.
Management of debt collection.	Comparative results to previous year/s performance: collectable debt compared to collections; and number of debt cases finalised.
Output 1.1.3 — Compliance assurance and support — revenue collections
Output 1.1.3 reflects the ATO's role in achieving high levels of voluntary compliance with Australia's tax and superannuation laws. The ATO places equal importance on ensuring that taxpayers both receive their entitlements and comply with their obligations. As a general approach, the ATO aims to intrude as little as possible on the majority of the community and businesses who want to meet their obligations, other than as a source of assistance, while at the same time being highly visible to those who are reluctant to do so. Under output 1.1.3 the ATO: publish its compliance program, alerting the community and business to issues they should be aware of and what practices and activity will attract the ATO's attention; provide information, guidance and self-help tools, answer questions and inform the community of new developments and the ATO's view of the law on contentious issues; provide certainty to taxpayers through the public ruling and private binding and reviewable ruling systems; provide easy and effective ways for people to send the ATO information, make payments and receive refunds; and apply a risk management approach to deter, detect and deal with non-compliance, and promote voluntary compliance in relation to the tax laws.
Key performance indicators	2008‑09 target
Optimise voluntary compliance.	Overall levels of compliance improved: collections in line with, or above, budget forecasts; and evaluation of trend data.
Specifically funded activities contributing to the collection of revenue implemented efficiently and effectively.	Specifically funded activities are implemented in accordance with the Government's timetable and achieve policy intent.
Provide support to help taxpayers and their advisers understand their rights and obligations.	Comparative results to previous year/s performance: number of information products delivered; and number of interpretation products delivered. Evaluation of selected ATO information products, from a taxpayer perspective, both pre and post implementation delivery.
Provide compliance assurance for the collection of revenue.	Comparative results to previous year/s performance: number of active compliance products delivered; number of liabilities raised/collected; and number of risk reviews conducted. Evaluation of ATO risk management and strategic intelligence.
Output 1.1.4 — Compliance assurance and support for transfers and regulation of superannuation funds
Output 1.1.4 reflects the ATO's processes required to assure and support compliance and to provide the community with information and assistance, in relation to transfers and superannuation obligations administered by the ATO. Similar to the ATO's assurance role under output 1.1.3, the ATO works to ensure that taxpayers both receive their entitlements and comply with their obligations. This output involves: providing compliance assurance and support in relation to transfers; regulating self managed superannuation funds; and ensuring superannuation funds regulated by the Australian Prudential Regulation Authority meet their reporting obligations. Transfers — administered expenses incurred by the ATO for which no reciprocal benefit is received: superannuation guarantee, superannuation co-contributions, and personal and business benefits and subsidies (including those that may be paid, as a matter of convenience, through the tax system). The primary intention of work under output 1.1.3 relates to assuring revenue collection. Compliance activity undertaken for other purposes falls under output 1.1.4.
Key performance indicators	2008‑09 target
Optimise voluntary compliance.	Overall levels of compliance improved: transfers and payments consistent with budget; and evaluation of trend data.
Specifically funded activities contributing to the payment of transfers or the regulation of superannuation funds implemented efficiently and effectively.	Specifically funded activities are implemented in accordance with the Government's timetable and achieve policy intent.
Provide support to help taxpayers and their advisers understand their rights in relation to transfers and their superannuation obligations.	Comparative results to previous year/s performance: number of information products delivered; and number of interpretation products delivered. Evaluation of selected ATO information products, from a taxpayer perspective, both pre and post implementation delivery.
Provide compliance assurance for the payment of transfers and the regulation of superannuation funds.	Comparative results to previous year/s performance: number of active compliance products delivered; number of liabilities raised/collected; and number of risk reviews conducted. Evaluation of ATO risk management and strategic intelligence.
Output 1.1.5 — Services to governments and agencies
Output 1.1.5 covers the range of services the ATO provides to the Treasurer and the Assistant Treasurer, the Minister for Superannuation and Corporate Law, the Treasury, Parliament, Australian Government agencies, external scrutineers and State and Territory governments. It also covers complaint handling procedures. The ATO works collaboratively with other agencies through a range of cross-agency support services and provides information to deliver whole-of-government initiatives and contributes to the business outcomes of those agencies. The intergovernmental agreement on the Reform of Commonwealth-State Financial Relations also outlines commitments the ATO have to the States and Territories in relation to GST. This output also covers: services provided by the Australian Valuation Office (AVO), which operates on a full cost‑recovery basis; and the role of Registrar of the Australian Business Register (which is separate from the role of the Commissioner of Taxation) in working cooperatively with intermediaries and other government agencies to establish the Australian Business Register as the Government's business register to reduce red tape for business.
Key performance indicators	2008‑09 target
Service delivery to governments and agencies.	Cross-agency support delivered to agreed standard and timeliness (as per signed inter‑agency Memoranda of Understanding). Ministerial and parliamentary services delivered to agreed standard and timeliness. Required volume of services delivered for cross-agency support. Required volume of services delivered for Ministerial and Parliamentary services.
Valuation services provided to key government agencies.	Number and percentage of work completed for Centrelink within agreed timeframes. AVO level of net operating profit, on-going performance against budget. Number of valuations completed for key government agencies.
The Australian Business Register established as the government's business register.	Number of agencies with Australian Business Register partnership agreements. Australian Business Register services provided to partner agencies to agreed standard and timeliness.

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