On 25 January 2018 (one day before Australia Day), the Deputy Commissioner – Indirect Taxation: Tim Dyce, presented the Commissioner’s ‘GST administration annual performance report for 2016–17’ and uploaded the summary set out below.
The principal points were as follows.
- The ATO’s collections growth this year, while not quite as high as last year, but has remained consistent with overall consumption of goods and services that are subject to GST.
- They raised $59.8 billion in GST cash (excluding non-general interest charge penalties), 4.3% higher than last year. This is the amount that gets distributed to the States each year (and about which there is endless bickering between the States).
- A further $2.9 billion in GST liabilities was raised through our direct compliance activities, a 12% decrease on last year’s outcome.
- The Department of Immigration and Border Protection (DIBP) raised a further $54.3 million through their compliance activities.
- This year, Australia has have seen a number of important legislative decisions, particularly on the sharing economy) and in the precious metal industry (ie. ‘reverse charge’ amendments).
- Legislation has also been introduced on digital currency and low value imported goods.
- To support our clients with these changes, we have engaged with the community through industry bodies, and published a number of new public advice products, such as the Law Companion Guideline GST on low value imported goods.
- Our debt collection activities faced a number of challenges this year, including the impact of natural disasters and a challenging economic environment for small business. As a result, our on-time payment performance has declined slightly, by 1.3%, and collectable debt (still outstanding) is up by 13.5%.
- Our focus on early engagement and improvements to the client experience has resulted in a 10.5% decrease in the number of GST collectable debt cases.
- We received 291 fewer objections this year, indicating our dispute resolution strategies at the audit stage are proving effective in reducing the need for clients to make a formal objection. Where it is appropriate, we also consider settlement. In 2015–16 we settled 49 cases, and this year we settled 75.
- Similarly, the number of cases that result in litigation has also decreased and we have 69 cases on hand at 30 June 2017, 10% less than last year.
26 January 2018
Study Questions (answers below*)
- Did the ATO raise nearly $60b in GST revenue in the 2016/17 year?
- Did their compliance activities raise more than the previous year?
- Does ‘Boarder Protection’ raise some GST revenue?
- Did ‘on time payment’ of GST go up?
- Did collectable GST debt go up?
- Did the number of GST collection cases go up?
- Did the number of objections go up?