Australian Taxation Office
Section 1:  Overview, variations and measures
Overview
There has been no change to the overview included in the 2002‑03 Portfolio Budget Statements (page 63).
Additional estimates and variations to outcomes
A parameter variation contributed to a net increase in agency outputs of $2.084 million for the Australian Taxation Office (ATO).
Measures
The ATO has no measures since the 2002‑03 Budget.

Map 2:  Outcomes and output groups

*	Transfers – movement of money that is not revenue eg tax offsets, grants, super guarantee vouchers and benefits distribution.

Breakdown of additional estimates by appropriation bill
Table 1.2:  Appropriation Bill (No. 3) 2002-03

Table 1.3:  Appropriation Bill (No. 4) 2002-03

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

Explanation of variations
The reduction in revenue from other sources through net annoted (Section 31) receipts is a result of a reduction in services being provided to the Child Support Agency and a reduction in interest revenue due to the Agency Banking Incentive Scheme review that resulted in a clawback of interest revenue.

Section 2:  Revisions to outcomes and outputs 
Outcomes and output groups
The Australian Taxation Office (ATO) has not made any changes to its outcome or outputs since the 2002‑03 Portfolio Budget Statements.
Revised performance information and level of achievement — 2002‑03
The ATO has not made any changes to its performance information since the 2002‑03 Portfolio Budget Statements.

Section 3:  Budgeted Financial Statements
Budgeted agency statement of financial performance
This statement provides a picture of the expected financial results for the Australian Taxation Office (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 budgeted movement in the ATO’s non‑financial assets for 2002‑03 Budget year.

Notes of Administered Activity
Details of transactions administered by ATO on behalf of the Commonwealth are shown in the following notes.
Note of budgeted administered financial performance
This note identifies 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)

Table 3.2:  Budget 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

Table 3.5:  Agency non-financial assets  summary of movement (Budget year 2002-03)

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

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

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

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.
Administered
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 items 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, 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
Agency and administered revenue

*	Includes Baby Bonus payments from consolidated appropriations

Appendix 2
Estimates of expenses from special appropriations