Part C
agency additional estimates statements
Australian Taxation Office
Section 1: Overview, variations
and measures
Overview
There has been no change to the overview included in the 2003-04 Portfolio Budget Statements (page 167).
Additional estimates and variations to outcomes
The Australian Taxation Office (ATO) is seeking a net increase in agency outputs of $0.659 million for the Comcover premium and $0.227 million for the implementation of the Budget Estimates and Framework Review in Appropriation Bill (No. 3) 2003-04.
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, superannuation, excise and other related systems
(1) These measures are administered in nature.
(2) This measure is departmental in nature.
(3) This is a cross portfolio measure. This table shows Australian Taxation Office's contribution to the measure. Further information can be found in the Department of Family and Community Services 2003-04 Portfolio Additional Estimates Statements.
Baby Bonus adoptions
The Government will amend the application of the Baby Bonus in relation to adoptive parents. Once legally responsible for the child, adoptive parents will be able to claim the Baby Bonus for the period between commencing care for the child and being granted legal responsibility via an adoption order. Previously, adoptive parents’ eligibility for the Baby Bonus commenced on the date that they were granted legal responsibility, through an adoption order, which may have been some time after they commenced care of the child.
The measure will be given effect from 1 July 2001, which was the date on which the Baby Bonus came into effect.
Refundable film tax offset — amendment
The Government will make minor amendments to the provisions for the refundable tax offset for large-scale films. These changes concern the interaction of the refundable film tax offset and the film concession contained in Division 10BA of the Income Tax Assessment Act 1936.
The amendment will ensure that, where Division 10BA benefits have not been accessed, provisional Division 10BA certification can be revoked, enabling film producers to be eligible to apply for the refundable film tax offset instead.
Currently film producers routinely seek provisional Division 10BA film certification as the first stage in raising funds for a film concept without knowing whether or not a foreign studio will fund the project. However, such provisional certification currently causes films to be ineligible for the film tax offset, regardless of whether investors have accessed Division 10BA benefits.
Further information can be found in the joint press release of 15 August 2003 issued by the Minister for the Arts and Sport and the Minister for Revenue and Assistant Treasurer.
Superannuation — extended Government superannuation co-contribution for low income earners
The Government has extended the income threshold for the superannuation co-contribution for low income earners from 1 July 2003. This will have a cost of $325 million over the three years from 2004-05.
The co-contribution matches eligible personal superannuation contributions made by qualifying low income earners after 1 July 2003. A maximum co-contribution of $1,000 is payable in respect of individuals whose assessable income and reportable fringe benefits do not exceed $27,500 (previously $20,000). The maximum co-contribution is reduced by 8 cents for each dollar of assessable income and reportable fringe benefits over $27,500, phasing out at $40,000 (previously $32,500). The co-contribution is treated as an undeducted contribution for tax purposes.
The start date for the Government superannuation co-contribution was delayed from 1 July 2002 to 1 July 2003. This delay reflects the failure of certain superannuation legislation to achieve passage through Parliament prior to 30 June 2003, and will result in a saving of $125 million in 2003-04.
Further information can be found in the press release of 7 September 2003 issued by the Minister for Revenue and Assistant Treasurer.
See also the related revenue measure titled Superannuation — delayed replacement of the personal superannuation contributions rebate in the Treasury portfolio.
Budget estimates — enhanced quality and timeliness
The Government will provide additional funding to agencies of $88.5 million over five years (including $0.1 million in 2007-08) to implement the Budget Estimates and Framework Review (BEFR) recommendations. This funding includes capital of $7.4 million over four years.
In the 2003-04 Budget the Government made provision for $78 million over five years to improve the accuracy, responsiveness and effectiveness of agencies’ contribution to the Commonwealth’s budget estimates and framework system and to assist agencies to drive improved financial management and reporting within their organisations. The Government has provided an extra $10.5 million over five years to fund agencies to implement the BEFR recommendations.
Family Tax Benefit and Child Care Benefit — extension of time for top-up payments and claims1
The Government has decided to modify the arrangements under which families can claim the Family Tax Benefit (FTB) and Child Care Benefit (CCB) at an expected cost of $181.2 million over four years.
The Government will extend by 12 months the amount of time families have to lodge their tax return in order to receive a top-up to their FTB and CCB payments when they have received less than their correct entitlement. The measure will also give families an extra twelve months to claim FTB and CCB as a lump sum payment. Families will now have two years after the end of the relevant income year in which to receive a top-up payment and to make a lump sum claim.
The changes will apply to the 2001-02 income year and subsequent income years. As a transitional measure, the Government will allow taxpayers who lodge an FTB claim with Centrelink between 1 July 2003 and 30 June 2004 in relation to the 2001-02 income year to claim a tax deduction for tax agent fees incurred in preparing these claims.
Further information can be found in the press release of 5 September 2003 issued by the Minister for Family and Community Services.
Other variations to appropriations
The ATO is seeking additional price of outputs funding of $0.659 million for the increase in the Comcover premium in 2003-04.
Measures — Australian Taxation Office summary
Table 1.1: Summary of measures since the 2003-04 Budget
(1) This is a cross portfolio measure. This table shows Australian Taxation Office's contribution to the measure. Further information can be found in the Department of Family and Community Services 2003-04 Portfolio Additional Estimates Statements.
Map 2: Outcomes and output groups for the agency
* Transfers – movement of money that is not revenue for example tax offsets, grants, super guarantee vouchers, and benefits distribution.
Breakdown of additional estimates by appropriation bill
Table 1.2: Appropriation Bill (No. 3) 2003-04
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
Agency and administered revenues
Table 1.6: Agency and administered revenues
Estimates of expenses from special appropriations
Table 1.7: Estimates of expenses from special appropriations
Estimated special account flows
Table 1.8: Estimated special account flows
(1) The revised Opening Balance for 2003-04 (reference A) is the same as the final actual closing balance for 2002-03 (reference B). This balance may have changed from that shown in the 2003-04 Portfolio Budget Statements as the actual for 2002-03 will have been updated to reflect the final budget outcome for the year.
(2) This special account is departmental in nature and is governed by the Financial Management and Accountability Act 1997.
(3) These special accounts are administered in nature and are governed by the Financial Management and Accountability Act 1997.
(4) This special account is administered in nature and is governed by the Superannuation Supervision Act 1995.
Note 1: Figures are cash based and include transactions between the Australian Valuation Office and the Australian Taxation Office.
1 This is a cross portfolio measure. Further information can be found in the Department of Family and Community Services 2003-04 Portfolio Additional Estimates Statements.