Australian Taxation Office
Section 3: Budgeted financial statements
The budgeted financial statements will form the basis of the financial statements that will appear in the Australian Taxation Office (ATO) 2001-02 Annual Report, and for the input into the Whole of Government Accounts. The financial statements should be read in conjunction with the accompanying notes.
These budgeted financial statements and administered notes are consistent with the forms of financial statements specified under the draft 2001-02 `Requirements for the Preparation of Financial Statements of Commonwealth Agencies and Authorities'.
Agency Financial Statements
Budgeted agency statement of financial performance
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 financial position
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 statement of cash flows
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.
Agency non-financial assets - summary of movement
This statement shows the movement in the ATO's non-financial assets over the Budget year 2002-03.
Notes of Administered Activity
Details of transactions administered by the ATO on behalf of the Commonwealth are shown in the following notes to the financial statements.
Note of budgeted administered financial performance
This note identifies the main revenues and expenses administered on behalf of the Government. It also discloses administered revenues from government and transfers to the Public Account.
Note of budgeted administered financial position
This note shows the assets and liabilities administered on behalf of the Government.
Note of budgeted administered cash flows
This note shows cash flows administered on behalf of the Government.
Table 3.1: Budgeted Agency Statement of Financial
Performance
for the period ended 30 June
(1) K1 - shows the link back to Table 1.1.
Table 3.2: Budgeted Agency Statement of Financial
Position
as at 30 June
Table 3.3: Budgeted Agency Statement of Cash
Flows
for the period ended 30 June
Table 3.4: Agency Capital Budget Statement
(1) K2 - shows the link back to Table 1.1.
Table 3.5: Agency Non-financial Assets - Summary of Movement (Budget year 2002-03)
Table 3.7: Note of Budgeted Financial Performance Administered on behalf of Government for the period ended 30 June
Table 3.8: Note of Budgeted Financial Position Administered on behalf of Government as at 30 June
Table 3.9: Note of Budgeted Administered Cash
Flows
for the period ended 30 June
Notes to the Financial Statements
Basis of accounting
The financial statements have been prepared on an accrual basis in accordance with the historical cost convention.
Notes to the agency statements
Details of agency items in the financial statements included in Table 3.1 to 3.5 have been prepared in accordance with the Requirements and Guidance for the Preparation of Financial Statements.
The budget statements and estimated forward years have been prepared to reflect the following matters.
Cost of administering Goods and Services Tax (GST)
Agency statements for 2001-02 and forward years include the estimated costs of administering the proposed GST pursuant to the `intergovernmental agreement on the reform of Commonwealth - state financial relations', the GST revenue is collected on behalf of the states and territories which agree to compensate the Commonwealth for the agreed GST administration costs.
The recovery of GST administration costs are reported under the Department of the Treasury.
Notes to the administered statements
Details of administered items in the financial statements included in Table 3.7 to 3.9 have been prepared in accordance with the requirements and guidance for the preparation of financial statements.
These statements incorporate a change in revenue recognition policy from prior years.
The budget statements and forward years have been prepared on the basis noted below and to reflect the following matters.
Recognition of taxation revenue
Since 1999-2000 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 Go, GST, 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.
