Australian Taxation Office
Section 1:  Overview, variations and measures
Overview
There has been no change to the overview included in the 2001‑02 Portfolio Budget Statements (page 161).
Additional estimates and variations to outcomes
The ATO is seeking additional departmental appropriations of $122.2 million and a departmental equity injection of $2.765 million as outlined below.
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 to administer The New Tax System
The Government has agreed to provide additional funding to the ATO of $107.5 million due to significant increases in non-GST transactional, lodgement, debt and enquiry workloads flowing from the New Tax System. Without the additional funding, compliance and other service activities would have been reduced to unsustainable levels, so as to allow re-direction of resources to meet this increase in operational demand.

A Better Superannuation System – Departing Temporary Residents
The Government has agreed to provide $7.455 million to the ATO to allow individuals who hold or have held a temporary residence visa and have departed Australia to access their superannuation benefits prior to reaching preservation age, subject to withholding of tax concessions provided to the benefits.
First Child Tax Refund
The Government has agreed to provide $7.235 million in departmental outputs and $2.675 million as an equity injection for the First Child Tax Refund.
The First Child Tax Refund will repay to parents caring for their first child born after 1 July 2001 the income tax they paid in the year of, or the year prior to the birth of the child. It will be repaid over five years. The payment will be capped at $2,500 per year and there will be a minimum payment of $500 per year for those on incomes up to $25,000.
The equity injection will allow the ATO to fund enhancement work to its business systems. 

Map 2:  Outcomes and output groups for the agency

Measures:  Australian Taxation Office summary
Table 1.1:  Summary of measures since the 2001-02 Budget

Breakdown of additional estimates by appropriations bill
Table 1.2:  Appropriation Bill (No. 3) 2001‑02

Table 1.3:  Appropriation Bill (No. 4) 2001‑02

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

Variations to revenue from other sources through net annotated (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 2001‑02 Portfolio Budget Statements.
The ATO has, however, commenced a review of its outcome and outputs framework for the ATO’s next Pricing Agreement. The new framework will reflect changes in our business deliverables due to tax reform, and new approaches to the way we plan and manage internally. Some of these changes will be reflected in our internal planning documents for 2001‑02.
Revised performance information and level of achievement — 2001‑02
The ATO has not made any changes to its performance information since the 2001‑02 Portfolio Budget Statements.

Section 3:  Budgeted Financial Statements
Budgeted agency statement of revenues and expenses (budget operating statement)
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.
Budgeted agency statement of assets and liabilities (budget balance sheet)
This statement shows the financial position of the ATO. It enables decision makers to track the management of the ATO’s assets and liabilities.
Budgeted agency cash flow statement
This statement identifies expected cash flows from operating activities, investing activities and financing activities.
Agency capital budget statement
This statement shows all proposed capital expenditure funded either through the Budget as appropriations or from internal sources.

Table 3.1:  Budgeted agency statement of financial performance
for the period ended 30 June 2002

Table 3.2:  Budgeted agency statement of financial position

Table 3.3:  Budgeted agency statement of cash flows
for the period ended 30 June 2002

Table 3.4:  Agency capital budget statement

Table 3.5:  Agency non-financial assets  summary of movement (Budget year 2001-02)

Table 3.6:  Note of budgeted administered financial performance
for the period ended 30 June 2002

Table 3.7:  Note of budgeted administered financial position
as at 30 June 2002

Table 3.8:  Note of budgeted administered cash flows
for the period ended 30 June 2002

 
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 to 2001‑02. 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 2000‑01 to 2001‑02 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 installments 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 Go, Goods and Services Tax, Excise 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.

Appendices 1 and 2
Appendix 1
Non-appropriation agency and administered revenue

Appendix 2
Estimates of expenses from special appropriations