Australian Taxation Office
Section 1:  Overview, additional estimates and variations to outcomes  
Overview
There has been no change to the overview included in the 2000-01 Portfolio Budget Statements.
Additional estimates and variations to outcomes 
The following variations contributed to a net increase in Departmental Appropriations of $202.0 million for the Australian Taxation Office (ATO).
Measures
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 system

Additional funding for the ATO to cover the increased cost of administering the GST
The New Tax System has seen a significantly higher number of Goods and Services Tax (GST) registrations compared to the original estimates underlying initial administration costs. As a result of these higher registrations, there have been substantial increases in Business Activity Statement processing workloads, related telephone inquiries and technical advice.
The Government has therefore decided to provide the Australian Taxation Office with additional funding to cover the increased cost of administering the GST.
Under the Intergovernmental Agreement on the Reform of Commonwealth-State Financial Relations, the States and Territories pay to the Commonwealth agreed GST administration costs. Additional payments from the States and Territories will offset this measure, with the first of these payments expected to be made in 2000-01.
Extension of Diesel and Alternative Fuels Grants Scheme
The Government has extended the Diesel and Alternative Fuels Grants Scheme from 1 July 2000 to include the following vehicles over 4.5 but less than 20 tonnes gross vehicle mass (GVM):
•	buses using alternative fuel such as liquid petroleum gas or compressed natural gas in metropolitan areas;
•	emergency vehicles that use diesel and alternative fuels in both metropolitan and non-metropolitan areas; and
•	primary production businesses and contractors carrying passengers or goods solely on behalf of primary production businesses, operating in metropolitan areas.
Additional fuels sales grants in remote areas
The Government has announced that under the Fuels Sales Grants Scheme, fuel retailers in remote areas may apply to the Australian Taxation Office for an additional grant where fuel prices are beyond $1.20 per litre.
Other variations to appropriations
Additional Business Tax Reform expense
An additional $20 million was approved by Government for expenses relating to the 1999-00 year. These funds are to be appropriated to the ATO in 2000-01.
Fuels Sales Grants Scheme
The Fuels Sales Grants Scheme was a 2000-01 Budget Measure covering 1999-2000 and 2000-01.
Operating expenses of $3.2 million were approved by Government for expenses relating to the 1999-2000 year. These funds are to be appropriated to the ATO in 2000‑01.
Comcover
An additional $0.457 million supplementation will be appropriated to the ATO to cover actual Comcover premiums.
Interest earnings
An increase in $1.669 million in departmental revenue appropriations is matched by a decrease in external revenue to account for the estimated interest earnings of the ATO.
Capital user charge
Supplementation of $6.361 million has been removed from appropriations as a result of revised calculations for the capital user charge.
Other
External revenue has been estimated to increase by $4.179 million based on current purchaser provider arrangements.
A net adjustment of $0.724 million is sought as an equity injection as a result of the previous year’s carryover relating to the Fuels Sales Grants Scheme.

Chart 6:  Australian Taxation Office outcomes and outputs
	Australian Taxation Office
Commissioner:  Mr Michael Carmody		
							
	Overall Outcome
Strong, sustainable economic growth and the improved wellbeing of Australians		
							
	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 system		
							
	Output Group 1.1
Australian Taxation Office
Total Price of Outputs:  $2,006.5  million
Agency Outputs Appropriation:  $1,915.1  million
Total Administered Expenses:  $3,354.6 million		

Output 1.1.1
Contribute to policy advice and legislation
Price of Output: $100.1 million		Output 1.1.2
Provide revenue

Price of Output: $1,708.4 million		Output 1.1.3
Provide transfers

Price of Output: $100.2 million		Output 1.1.4
Support other agencies

Price of Output: $98.0 million	

Measures:  Australian Taxation Office summary
Table 1.1:  Summary of measures since the 2000‑01 Budget

Breakdown of additional estimates by appropriations bill
Table 1.2:  Appropriation Bill (No. 3) 2000‑01

Table 1.3:  Appropriation Bill (No. 4) 2000‑01

Summary of staffing changes
Table 1.4:  Average staffing level (ASL)

Variations to revenue from other sources through net annotated appropriations (section 31) receipts
Table 1.5:  Changes to net annotated appropriations (section 31) receipts

Section 2:  Revisions to outcomes and outputs
Outcomes and output groups
The ATO has not made any changes to its outcome or outputs since the 2000-01 Portfolio Budget Statements.
Revised performance information and level of achievement — 2000‑01
The ATO has not made any changes to its performance information since the 2000-01 Portfolio Budget Statements.

Section 3:  Budgeted financial statements
Budget statement of revenues and expenses 
This statement provides a picture of the expected financial results for the ATO by identifying full accrual expenses and revenues, which highlights whether the ATO is operating at a sustainable level.
Budget statement of assets and liabilities 
This statement shows the financial position of the ATO. It enables decision makers to track the management of the ATO’s assets and liabilities.
Budget cash flow statement
This statement identifies expected cash flows from operating activities, investing activities and financing activities.
Capital budget statement
This statement shows all proposed capital expenditure funded either through the Budget as appropriations or from internal sources.

Table 3.1:  Budget statement of revenues and expenses

Table 3.2:  Budget statement of assets and liabilities (Agency)

Table 3.2:  Budget statement of assets and liabilities (Administered)

Table 3.3:  Budget cash flow statement (Agency)

Table 3.3:  Budget Cash Flow Statement (Administered)

Table 3.4:  Capital budget statement

Notes to the financial statements
Basis of accounting
The agency budget statements are prepared in compliance with Australian Accounting Standards, Accounting Guidance Releases and having regard to Statements of Accounting Concepts.
Agency
The ATO is budgeting for an Operating Deficit for 2000-01. Approval for this deficit was obtained from the Treasurer and comes about as a result of pressures on the ATO budget in relation to unexpected workload volumes, the increase in activity to meet community demands and the steps being taken to maintain the integrity of the tax system in transition. 
Administered
Recognition of Taxation Revenue
For 1999‑2000 to 2000-01 and forward years administered taxation revenue has been brought to account on a year by year basis where:
•	the identity of the taxpayer is certain;
•	the amount of the liability or refund is certain;
•	the liability or entitlement to a refund has been notified to the Commissioner or advised by the taxpayer;
•	there is an intention on the part of the Commissioner to collect the liability; and
•	there is a legislative intent by the Commonwealth to change the basis or application of taxation law.
This recognition policy does not include the following item as revenue of the period:
•	estimates of future collections or refunds from Individuals in respect of income tax returns to be lodged for the current financial year ended at 30 June;
•	estimates of instalments of tax and final payments for companies due after 30 June;
•	estimates of final amounts for Petroleum Rent Resource Tax due after 30 June; and
•	actual payments for Pay As You Earn, Pay As You Go, Wholesale Sales Tax, Goods and Services Tax, Excise, Prescribed Payments and Withholding Taxes for amounts collected or withheld in June but not remitted to the Commissioner until July.
Items recognised as reductions to taxation revenue
The following items are recognised as reductions (increases) to taxation revenue and not as expense:
•	refunds of revenue;
•	increase (decrease) in movement of provision for credit amendments;
•	diesel fuel rebates and diesel fuel credits; and
•	increases (decreases) in movement of provision for diesel fuel rebates.

Appendix 1
Non-appropriation agency and administered revenue

Note: GST administration charges are now reported by the Department of the Treasury
Appendix 2
Estimates of expenses from special appropriations