Section 3: Outcomes
This section summarises how the resources identified in Section 2 will be used to contribute to the outcome of the Australian Taxation Office (Tax office). Key performance measures and performance evaluation activities are specified for each outcome.
3.1 Summary of outcomes and contribution to outcomes
The relationship between activities of the Tax Office and its outcome is summarised in Figure 2. The Tax Office has made a change to Output 1.1.4 since the Portfolio Additional Estimates Statements 2006-07. Previously the output read ‘Compliance assurance and support for transfers and regulation of superannuation funds compliance with retirement income standards’. The output now reads ‘Compliance assurance and support for transfers and regulation of superannuation funds’.
Figure 2: Contributions to outcomes
* Transfers — movement of money that is not revenue eg tax offsets, grants, super guarantee vouchers, and benefits distribution.
3.2 Outcome resources and performance information
3.2.1 Outcome 1 resourcing
Table 3.1 shows how the 2007-08 Budget appropriations translate to total resourcing for Outcome 1, including administered expenses, departmental appropriations, and revenue from other sources.
Table 3.1: Total resources for Outcome 1
3.2.2 Measures affecting Outcome 1
The Budget measures for the Tax Office appear in Table 2.2. Details of these measures are included in Budget Paper No. 2, Budget Measures 2007-08.
3.2.3 Contributions to achievement of Outcome 1
Administered activities
The Tax Office is the Australian Government’s principal revenue collection agency and is part of the Treasury portfolio. The Tax Office’s role is to manage and shape tax, excise and superannuation systems that fund services for Australians. The Tax Office plays an important role in building a better Australia by giving effect to social and economic policy, in 2007-08 the Tax Office intends to deliver approximately $9 billion in subsidies and benefits schemes.
The Tax Office manages revenue through a range of collection systems, including income tax, GST (collected by the Australian Government on behalf of state and territory governments), superannuation and excise (but not customs duty). It also administers a range of benefits and refunds, including income tax and GST refunds, excise grants, family tax benefits, superannuation guarantees and fuel tax credits.
The Tax Office also addresses broader issues affecting Australia’s revenue systems, such as aggressive tax planning, persistent tax debtors, globalisation and the cash economy.
The main areas of the tax system administered by the Tax Office are:
- income tax (including pay as you go (PAYG) withholding and instalments, capital gains tax and fringe benefits tax);
- wine equalisation tax;
- luxury car tax;
- goods and services tax (GST);
- higher education funding (on a joint basis);
- excise duty;
- fuel grants and benefit schemes;
- superannuation (including the superannuation guarantee, small superannuation accounts, ‘lost’ members, superannuation co-contribution and self managed superannuation funds); and
- the Australian business number and Australian business register.
The Tax Office also supports the delivery of community benefits, with roles in other areas such as private health insurance, family assistance and cross-agency support.
Departmental outputs
There are five distinct outputs that contribute to Outcome 1:
- Output 1.1.1: reflects the Tax Office’s role in effectively shaping the systems to give effect to the legislation administered by the organisation;
- Output 1.1.2: represents the operational aspects of managing the taxation, superannuation and excise systems;
- Output 1.1.3: represents the processes required to assure and support compliance with tax obligations, providing the community with information and assistance;
- Output 1.1.4: represents the processes required to assure and support compliance with transfers and superannuation obligations administered by the Tax Office, providing the community with information and assistance; and
- Output 1.1.5: reflects the range of services the Tax Office provides the Treasurer and the Minister for Revenue and Assistant Treasurer, to the Parliament and to other Australian Public Service agencies.
3.2.4 Performance information for Outcome 1
The following table summarises the performance information for administered items, individual outputs and output groups relating to the Tax Office.
Table 3.2: Performance information for Outcome 1
Table 3.2: Performance information for Outcome 1 (continued)
Table 3.2: Performance information for Outcome 1 (continued)
3.2.5 Evaluations for Outcome 1
The Australian National Audit Office and Tax Office Internal Audit have a rolling programme of issues that are audited during the financial year. Other issues are evaluated within the Tax Office during the financial year as required. Results of evaluations will be shown in the Tax Office Annual Report.