The Australian National Audit Office (ANAO) on Thur 9.5.2013, released its Performance Audit Report No 34 2012-13 on the extent to which Treasury and the ATO have improved the management of tax expenditure estimates by implementing the 6 recommendations made in an earlier ANAO audit (Performance Audit Report No 32 2007-08) into the completeness and reliability of the estimates reported in the 2006 Tax Expenditures Statement, and the 3 recommendations made by the Joint Committee of Public Accounts and Audit’s (JCPAA) inquiry into that earlier ANAO audit.
The ANAO noted that the audit mainly focused on the Treasury and that the ATO was included because a number of the 2008 audit recommendations involved the ATO. The ANAO reported that of the 9 recommendations, only 2 have been fully implemented. The remaining recommendations have only been partially addressed. Among other things, the ANAO reported that “there has been no measurable improvement to the reliability and quantification of the Treasury’s tax expenditure estimates over time (relating to ANAO Recommendation No 6(a) and 6(c) and JCPAA Recommendation No 9)”.
The ANAO said the recommendations of the earlier ANAO audit and of the JCPAA continue to be relevant. The ANAO also made a further recommendation to improve the consistency of the published ratings by standardising the methodology for allocating ratings. Treasury and the ATO have agreed to the recommendation.
[LTN 87, 9/5/13]