ATO Corporate plan 2019–20 c… · work with digital service providers and other partners to expand, streamline and assure the digital ecosystem Intermediaries engagement and assurance

ATO corporate plan

20 19 20

ATO corporate plan 2019–20

The Australian Taxation Office (ATO) is the Australian Government’s principal revenue collection agency, administering Australia’s tax system and significant aspects of the superannuation system. We administer legislation governing tax, superannuation and the Australian Business Register (ABR), and support the delivery of government benefits to the community.

Copyright© Australian Taxation Office for the Commonwealth of Australia, 2019

You are free to copy, adapt, modify, transmit and distribute this material as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).

Published NAT 7769-07.2019 DE-4098

Australian Taxation Office, Canberra

July 2019

ATO corporate plan 2019–20 i

Commissioner’s foreword

‘ We serve the public and the work we do every day is vitally important to that task. The corporate plan 2019–20 makes this

link clear – it's a milestone in our journey towards 2024,

another chance to remind ourselves where we are going and what we need

to do to get there.’

Here I present the ATO corporate plan 2019–20. The direction outlined in this plan is the next step in our transformation to the way the ATO operates and serves the community.

Last year when I launched Towards 2024, I said the journey of transformation will be challenging but will be worth it. Over the last year, we have collectively worked hard to make gains in pursuit of our aspirations – to build trust and confidence in the tax and superannuation systems, and to create a more streamlined, integrated and data-driven future.

We’ve had a number of wins, including the introduction of Single Touch Payroll, Online services for agents, and new tools and technology for our staff.

As with any pursuit of excellence, however, there is still more work to do. In this plan, we establish the next phase of Towards 2024 in making the ATO a leading tax and superannuation administration, known for its contemporary service, expertise and integrity.

This year, we will deliver some major projects in our 2024 road map. This includes the final stages of Single Touch Payroll, the renewed government commitment to taskforces, such as black economy and corporate tax avoidance, and ABN reforms.

As we deliver improvements to technology systems we expect our clients and staff to experience some significant shifts. We will integrate our back-end systems by creating a single client accounting system, and provide more real-time transactions enabled by data, including new data from employers on tax and superannuation obligations. We will also continue to enhance how our clients interact with us digitally, through full implementation of myGovID and authorisation changes.

ii ATO corporate plan 2019–20

CCommissioner’s foreword continued

With growth in our digital interactions and data collections, we are also investing in how we use automation and artificial intelligence to enhance the client experience and integrity in the system.

As we come into another important tax time where we interact with millions of Australians, we are reinforcing our focus on doing the basics brilliantly all of the time. We know mistakes can have a major impact on our clients and our aspiration to build trust and confidence.

Our focus is on strengthening our culture, governance and leadership, and delivering end-to-end solutions that better serve those interacting with our systems. In particular, clients with debts, other obligations or disputes will see us more proactively and holistically address their interactions.

The work we do at the ATO is important. We serve the public and the work we do every day is vitally important to that task.

The corporate plan 2019–20 is a milestone in our journey Towards 2024, and another chance to remind ourselves where we are going and what we need to do to get there.

I’m proud of the progress we’ve made and look forward to the year ahead.

Chris Jordan Commissioner of Taxation and Registrar of the Australian Business Register

This ATO corporate plan 2019–20 has been prepared as required under paragraph 35(1)(b) of the Public Governance, Performance and Accountability Act 2013. It covers the period 2019–20 to 2022–23 and includes the plan of the Australian Business Register (ABR).

Due to their operational independence, the Tax Practitioners Board (TPB) and the Australian Charities and Not‑for‑profits Commission (ACNC) have produced their own corporate plans.

ATO corporate plan 2019–20 1

C Contents

Commissioner’s foreword i

01 Overview 2

02 Strategic objectives 4

03 Enterprise risk management 13

04 Performance 14

05 Organisational capability 15

06 Environment 16

07 Australian Business Register 17

08 Tax Practitioners Board 19

09 Australian Charities and Not‑for‑profits Commission 20

Appendixes 21

Acronyms and initialisms 26

2 ATO corporate plan 2019–202 ATO corporate plan 2019–20

01 Overview

PurposeThe ATO’s purpose is to contribute to the economic and social wellbeing of Australians by fostering willing participation in the tax and superannuation systems.

We have two aspirations for 2024: ■ building trust and confidence ■ being streamlined, integrated and data‑driven. V

isio

n

We are a leading tax and superannuation administration known for our contemporary service, expertise and integrity.

Strategic objectivesWe have nine strategic objectives, which are grouped into five perspectives:

Government

G1 We build community confidence by sustainably reducing the tax gap and providing assurance across the tax and superannuation systems.

G2 We design for a better tax and superannuation system to make it easy to comply and hard not to.

Client

C1 Our client experience and interactions are well designed, tailored, fair and transparent.

C2 We work with and through others to deliver efficient and effective tax and superannuation systems.

Workforce

W1 We are a high‑performing, responsive and professional workforce with the right culture and capability to deliver now and for the future.

W2 We provide the right tools and workspace so staff can deliver the best client experience.

Operational

O1 We use data, information and insights to deliver value for our clients and inform decision‑making across everything we do.

O2 Our technology and digital services deliver a reliable and contemporary client experience.

Financial

F1 We strive for operational excellence to achieve efficiency and quality outcomes.


How the elements of our plan interrelate

EnvironmentThe external and internal factors we need

to consider to deliver on our objectives

Strategic risksThe areas of uncertainty that may impact on our purpose

PurposeThe reason why the ATO exists

VisionWhat we

aspire to be

Strategic objectives

Our areas of focus to achieve our purpose

and vision

Future stateThese narratives

describe our optimum future state

Strategic initiatives

The significant pieces of work we will undertake to deliver

our objectives

Performance measures

How we will measure and assess the success of our

objectives

CapabilityThe capabilities required by the ATO today and into the future

4 ATO corporate plan 2019–20

Strategic objectives G1 Government

We build community confidence by sustainably reducing the tax gap and providing assurance across the tax and superannuation systems

Future stateThe community is confident that our administration of the tax and superannuation systems supports collection of the right tax, at the right time for the wellbeing of all Australians.

Strategic initiatives ■ Superannuation guarantee assurance

– ensure the superannuation system is visible, valued and owned, to increase willing participation and drive transparency in member information

■ Payment and debt management – improve taxpayers understanding of their obligations, make payment easy and where debts arise, ensure they can be addressed as soon as possible

■ Individuals tax gap and substantiation – reduce the tax gap for individuals (not-in-business) by enabling digital substantiation of claims, increasing pre‑filling and streamlining returns

■ Complex issue and case program – build our capability to address more complex and concerning issues and cases that threaten system integrity

■ Black economy program – address the black economy with improvements to systems, use of data and increased education and enforcement

■ Tax Avoidance Taskforce – expand our focus on the tax affairs of multinational enterprises, large public and private groups and wealthy Australians

■ Serious Financial Crime Taskforce – disrupt serious financial crime activities, with a focus on offshore tax evasion, phoenix activities and cybercrime

Performance measuresBy measuring revenue-based performance criteria, we can assess trends in our prevention-before-correction activities, as well as changes in the extent of system assurance.

■ Confidence – community confidence in the ATO

■ Registration – proportion of companies and individuals registered in the system

■ Lodgment – proportion of activity statements and income tax returns lodged on time

■ Payment – proportion of liabilities paid on time by value

■ Correct reporting – tax gap as a proportion of revenue

■ Debt – ratio of collectable debt to net tax collections

■ Total revenue effects – tax revenue from all compliance activities

■ Tax assured – proportion of the tax base where the ATO has justified trust that tax paid is correct, based on the proportion of income, deductions and tax offsets assured


G2 Government

We design for a better tax and superannuation system to make it easy to comply and hard not to

Future stateWell-designed policy and law support improved integrity and client experience.

Strategic initiative ■ Integrated policy and legislative design –

use insights to influence policy and law design, and leverage digital and data opportunities to improve integrity and client experience

Performance measureOur ability to influence the design of tax and superannuation policy is dependent on the trust that government and Treasury have in the quality of our insights and advice.

■ Influence – government and Treasury perceptions of the ATO and the quality of our advice


C1 Client

Our client experience and interactions are well designed, tailored, fair and transparent

Future stateDealing with the ATO is seamless and easy, and much of it happens automatically through natural systems.

Strategic initiatives ■ Improve end‑to‑end client experience

(pipeline reviews) – address issues affecting the optimal end-to-end client experience

■ Highest client impacts – ensure we have the right safeguards in place to identify and remediate processes and actions that can have significant client impacts

■ Channel experience – optimise the channel experience with data-driven service design that drives clients to our preferred channels and confines non-preferred channels

■ Dispute resolution – reduce objections and complaints by improving processes and making better use of insights and feedback

■ Single Touch Payroll – support the ongoing transition to Single Touch Payroll and build on our data-sharing arrangements

Performance measuresA well-designed, fair, tailored and transparent experience makes it easier for clients to access the services and support they need, gives them increased confidence in the ATO and reduces the costs they face to manage their tax affairs. A focus on digital transactions is one way we make things easier for clients.

■ Compliance cost – adjusted median cost to individual taxpayers of managing their tax affairs

■ Digital – proportion of inbound transactions received digitally for key services


C2 Client

We work with and through others to deliver efficient and effective tax and superannuation systems

Future stateThe ATO maximises the contribution of others in the system to help us achieve effective administration and delivery of the tax and superannuation systems.

Strategic initiatives ■ Enhancing the digital ecosystem –

work with digital service providers and other partners to expand, streamline and assure the digital ecosystem

■ Intermediaries engagement and assurance – support intermediaries to ensure clients do the right thing, and increase internal transparency around the risks in their professional practices

■ Improved digital services for agents – support the ongoing transition to contemporary digital services for agents and make portal services accessible to digital service providers

■ Online services for business – design the enhancement of online services for business in the ATO Online platform

■ International partnerships – collaborate with other revenue authorities to ensure the ATO can act when people attempt to use jurisdictional borders to block our effective administration

Performance measureEmpowering and including our third parties requires that we work together, leveraging each other’s work as appropriate, to achieve better outcomes.

■ Working together – partner perceptions of how the ATO is working with them to administer the tax and superannuation systems


W1 Workforce

We are a high-performing, responsive and professional workforce with the right culture and capability to deliver now and for the future

Future stateOur culture supports an engaged and empowered workforce that is vibrant, flexible and client‑focused.

Strategic initiatives ■ Future workforce – ensure we have the right

balance of capability to deliver the best client and staff experience, including leadership, management, technical and client service skills

■ Culture and integrity – build on the positive cultural change and integrity focus we have achieved and address the specific challenges still holding us back

Performance measuresHighly engaged employees feel empowered and trusted to deliver the best possible client experience. By measuring the level of engagement of our employees, we will better understand the impact of our culture strategy. Diverse workforces foster new ways of thinking, thereby enhancing productivity.

■ Culture – level of employee engagement ■ Gender equality – female representation

in the senior executive service (SES) and executive level (EL) classifications

■ Indigenous representation – proportion of ATO staff who identify as Indigenous


W2 Workforce

We provide the right tools and workspace so staff can deliver the best client experience

Future stateStaff feel supported in the workplace with the right tools to deliver the best client experience.

Strategic initiative ■ Staff experience – improve the staff

experience through how we use existing and future tools and showcase best work practices

Performance measureWhile highly engaged employees feel empowered and trusted to deliver the best possible client experience, we also need to equip them with the right tools and workspace to complement their skill sets.

■ Staff experience – employee perceptions around whether they have access to the tools and resources needed to perform well


O1 Operational

We use data, information and insights to deliver value for our clients and inform decision‑making across everything we do

Future stateOur decisions are evidence-based, drawing on data and insights.

Strategic initiatives ■ Data backbone – develop data management

infrastructure to cope with increasing data needs

■ Analytics integration – evolve our workforce, processes and structure to maximise value from data and analytics

■ Data democratisation and visualisation – enable easy access to data and personalised, intuitive analytics insights

■ Artificial intelligence and automation – realise process efficiencies through automation and artificial intelligence

■ Data governance and ethics – embed an ATO‑wide and end‑to‑end data governance model within an ethical framework

Performance measureMaking better use of our data allows for early engagement with our clients to help them get things right from the start. It also enables us to identify those who are not doing the right thing. Measuring the proportion of items pre-filled in tax returns will drive changes that make it easier for our clients to do the right thing. It also provides us with increased assurance of the right outcomes.

■ Tax returns – proportion of items that are pre‑filled


O2 Operational

Our technology and digital services deliver a reliable and contemporary client experience

Future stateClient experience is reliable, and delivered through contemporary digital services comparable with any other client-focused organisation.

Strategic initiatives ■ Digital identity – implement GovPass

components to replace AUSkey and deliver the identity solution for individuals

■ Improving the ATO IT systems – modernise our key systems, infrastructure and services to improve their resilience, availability and security

■ Security capabilities – strengthen our ability to monitor, detect and respond to cyber and other security threats

■ Single client accounting system (ASFP) – consolidate our accounting systems to deliver a single account processing system and allow a whole-of-client account view

Performance measureMeasuring availability of our digital systems ensures we understand the reliability of services for clients interacting digitally. Our systems must comply with whole-of-government standards and give the community confidence in the privacy and security of information they share with us.

■ Availability – key digital systems availability


F1 Financial

We strive for operational excellence to achieve efficiency and quality outcomes

Future stateOur strong efficiency and high-quality outcomes demonstrate our commitment to operational excellence.

Strategic initiative ■ Drive operational excellence – boost

operational productivity and outcomes by improving data quality, streamlining systems and procedures, and better governing our small change

Performance measuresMeasuring our budget and cost of collection allows us to actively manage and reduce our operating costs relative to the services we provide to the community. Our focus is on enhancing the client experience while remaining within our budget.

■ Budget – ATO manages its operating budget to balance

■ Cost of collection – cost to collect $100


Enterprise risk management

Actively identifying and managing risk is inherent to the achievement of our purpose and objectives as an organisation.We have well-established systems of risk oversight and management that align with the Commonwealth Risk Management Policy and support our compliance with section 16 of the Public Governance, Performance and Accountability Act 2013.

Our strategic risks are aligned to our purpose and aspirations, reflect themes in our external environment and guide decision‑making across the organisation

Government Client Workforce Operational Financial

Environmental risk themes

Diminishing trust in large institutions

Increasing citizen expectations of government services

Workforce shifts and competition for talent

Security and privacy in an increasingly data-driven world

Pressure to demonstrate effectiveness and deliver more with less

Strategic risks

Our ability to maintain the integrity and fairness of the tax and superannuation systems, and influence their design, may impact on trust and confidence.

Our ability to deliver a well-designed end-to-end client experience, that meets expectations, may impact willing participation.

Our ability to build and retain necessary skills and capability may impact on our efforts to transform our workforce and support evolving needs.

Our ability to improve the way we operate – leveraging data and technology while maintaining its integrity – may impact on our vision for tailored and contemporary service.

Our ability to drive efficiency and effectiveness, while continuing to innovate and deliver change, may impact on our aim for sustainable business excellence.

ATO risk appetiteAs an organisation, we recognise that positive engagement with risk is necessary to make the most of opportunities, deal with threats, foster innovation and build a strong risk culture throughout the ATO.

In doing this, we are: ■ willing to accept higher levels of uncertainty

where there is a clear opportunity to realise benefits and where risks can be controlled to acceptable levels

■ less willing to accept uncertainty where it is not clear that benefits will be realised or where risks are unable to be controlled to acceptable levels.


Performance

Everything we do is about improving outcomes for government and the community. Measuring our impact is fundamental to this.

Our measures align with our strategic objectives and, by extension, with our purpose – to contribute to the economic and social wellbeing of Australians by fostering willing participation.

A variety of measurement methods are used to assess different elements of our performance, including analysis of:

■ trends in how our clients interact with the tax and superannuation systems

■ survey data used to capture client, partner and staff perceptions

■ our internal activities, such as information technology systems and internal budgeting.

Many of our performance measures are outcome-focused, and all are assessed annually. Our performance for these will be assessed against trends of results, both in absolute terms and against the performance target for the relevant year.

Details of the performance criteria and targets for the life of the corporate plan – including those for the ATO, the ABR and our administered programs – are provided in Appendixes A, B and C.


Organisational capability

Our organisational capability is the combination of our people, culture, governance principles, processes, systems and knowledge.

Having a strong organisational capability ensures we can deliver on priorities for the government and the community, and are prepared for the challenges and opportunities in our environment. Our organisational capability will be enhanced to deliver on our strategic objectives for the period 2019–20 to 2022–23.

Table 1: Capability

Capability factors and our approach

Workforce: We are a high‑performing, responsive and professional workforce with the right culture and capability to deliver now and for the future

We will achieve this through deliberate investment in our diverse workforce where our people have the skills, knowledge and attributes to meet current and emerging needs. Our culture and capability supports an innovation mindset, client‑centric thinking, leadership values and professional growth. Delivery of our client services will be supported by collaborative working, and modern work practices and workspaces. Our people exhibit high levels of integrity in their work, acting fairly and impartially to provide trust and confidence in the tax and superannuation systems.

ICT: Our technology and digital services deliver a reliable and contemporary client experience and keep pace with community expectations

We are a leading digital business, known for technology-enabled innovation, integrity and insight across the revenue ecosystem. Into the future, we will focus on stabilising and optimising our current technology, while building the foundation for future capabilities.Our technology delivers optimal, reliable, intuitive and contemporary business solutions – fostering trust and confidence in the tax and superannuation systems, providing exceptional client and staff experiences; and enabling a highly effective and efficient organisation.

Investment: We strive for operational excellence to achieve efficiency and quality outcomes, and ensure our resources are aligned to our priorities

Our investments are managed strategically and systematically to ensure we deliver on our objectives, and that benefits and value is realised. Our resourcing decisions reflect our contribution to government, and we ensure effective investment in key government priorities by:

■ ensuring agility in the ATO workforce ■ embedding robust, risk-appropriate investment practices ■ strategically managing our vendor engagement and their service delivery to the ATO

■ focusing on continuous improvement and identifying opportunities to increase our efficiency.


Environment

The tax and superannuation environment is complex, globally connected and disrupted by geopolitical shifts and emerging technologies.

Our environment has an impact on the risks to our success and the capabilities the ATO requires into the future. The contemporary environment requires us to anticipate and respond to future shifts and changes and also to balance our commitments to the community and government. Through a clear and shared understanding of our environment, we can harness the opportunities presented and build the capability to allow us to deliver our strategic intent.

Table 2: Environment

Environmental factors and our approach

The complexity of the tax and superannuation environment influences client perceptions

Taxation complexity influences the client experience. The perceptions created by experiences affect our ability to provide effective services. By co‑designing enterprise‑wide engagement strategies we ensure clients experience an uncomplicated service that encourages ongoing engagement and participation.

Equity, fairness and confidence in the tax and superannuation systems

Understanding community perceptions of the tax system is critical to our ability to provide a service that is transparent and fair. We will continue to harness opportunities and integrate strategies to encourage willing participation, leverage data and relationships, and ensure transparency of our operations. By showing how we create a level playing field, we will encourage positive community perceptions of fairness in the tax system, building confidence and willing participation.

Meeting community expectations

There are increasing expectations that government is more inclusive and open to working and collaborating with external and international organisations. Our services need to be increasingly joined up and integrated, making use of existing data. Opportunities exist for an innovative delivery model to enable the ATO to partner with others to deliver products and services. Innovative solutions for priority business outcomes and client needs will be co-designed, working collaboratively with our partners.

Data is a strategic asset

New technologies, greater portability and mobility of data, and access to digital communities, present new opportunities for data sharing. With increasingly sophisticated cyberattacks, it is important to find the right balance between openness and control. The rapid growth of unstructured data requires investment in new systems, skills and data literacy. Predictive analytics enable agile responses to client needs and expectations, therefore allowing us to deliver results more efficiently.

Digital disruption is transforming traditional views on how we do things

The impacts of emerging technologies can materialise quickly, affecting economies, reshaping industries and removing the need for trusted intermediaries. Digital disruption is transforming the way we do things and has the power to drive productivity. Computing power combined with human decision-making can slash times for low complexity / high volume work.


07 Australian Business Register

We support a fairer business environment for the community, businesses and government through trusted business registry services and digital standards.

The Commissioner of Taxation is also the Registrar of the Australian Business Register (ABR). The Registrar has separate and distinct responsibilities, as outlined in section 28 of the A New Tax System (Australian Business Number) Act 1999.

Future stateOur vision is to be custodian of trusted business information and a world-class provider of associated services used by businesses, governments and communities to unlock economic and social value for Australia.

PurposeThe ABR program contributes to improving national productivity by:

■ delivering effective and efficient business registry services that provide trusted and accessible national business data

■ encouraging trust and confidence in the broader use of national business data by businesses, governments and the community – to promote the development of new and better services for businesses, using the Australian business number (ABN) as a key identifier

■ reducing the administrative cost to businesses in their dealings with other businesses and government.

The ABR program encompasses: ■ the Register, which is a trusted national

business dataset and provider of business registry services

■ Standard Business Reporting (SBR), which defines a common language for business information and standards for digital information exchange and sharing with businesses and government

■ secure authentication options, giving business easy access to a range of services.

Strategic risk focusThrough our business registry services and digital standards we maintain the integrity of the tax and superannuation systems and reduce administrative burden.

Trusted business registry services and digital standards support a fairer business environment that unlocks economic and social value for Australia. Understanding and managing risk associated with achieving our strategic initiatives is vital to delivering on our purpose as an organisation.

We have well-established systems of risk oversight and management that align with the Commonwealth Risk Management Policy and support compliance with section 16 of the Public Governance, Performance and Accountability Act 2013.


Strategic initiatives ■ Modernising business registers –

co-design modern business registry services that support Director Identification Numbers and deliver on tax integrity measures

■ Strengthening the ABN system – improve the integrity of the ABR and use data better to unlock economic and social value for Australia

■ ABR program commitments – deliver on government commitments, including the digital exchange standards, to maintain trust and confidence in the Australian Business Register

Performance measuresThe ABR program works with all levels of government, digital service providers and the business community to support a fairer business environment that unlocks economic and social value for Australia. This will be achieved through increased use of a trusted national business dataset and the use of consistent information exchange standards.

■ Increased use of the ABR – increased use of the ABR as the national business dataset

■ Reduced administrative costs – reduction in the administrative cost to businesses and government in dealing with each other

EnvironmentThe ABR program will continue to modernise business registers across government. We seek to combine the ABR and Australian Securities and Investments Commission (ASIC) business registry into an integrated source of trusted business information to streamline the registration experience and improve the range, accuracy and accessibility of the data.

This work will support our initiatives on Director Identification Numbers (DIN) and strengthening the ABN system, allowing earlier identification of risk in the business environment, including black economy and phoenix activities. These improvements will boost our information and compliance activities by ensuring ABN holders understand their obligations and are assisted to meet them.

SBR is evolving to provide more flexible technology options and easier implementation. This includes a continued focus on increasing usage of SBR products and on meeting the future demands of business and government digital engagement.

CapabilityABR program capability requirements are included in Organisational capability (see page 15).

Australian Business Register continued


08 Tax Practitioners Board

The Tax Practitioners Board (TPB) is an independent statutory body created under the Tax Agent Services Act 2009. It consists of members appointed by the Minister for Revenue and Financial Services and staff made available by the Commissioner of Taxation.

The TPB’s role is to ensure that tax practitioner services are provided to the public in accordance with appropriate standards of professional and ethical conduct. The TPB protects consumers of taxation services by regulating tax practitioners, strengthening the integrity of the tax profession.

The TPB has three strategic objectives to achieve this role:

■ protect consumers ■ maintain, protect and enhance the integrity

of the registered tax practitioner profession ■ the TPB is recognised as an effective and

efficient regulator.

To achieve these objectives, the TPB has five priority areas of focus:

■ acting on misconduct ■ shaping and influencing law and policy ■ strengthening capability ■ supporting the legal and ethical standards

of the profession ■ supporting consumers.

Further information about the TPB, including its activities and results, are provided in its 2019–20 corporate plan, available at tpb.gov.au


09 Australian Charities and Not‑for‑profits Commission

The Australian Charities and Not-for-profits Commission (ACNC) is the independent regulator of charities at the Commonwealth level.

While the Commissioner of Taxation is the Accountable Authority for the ACNC, the ACNC has operational independence.

The Australian Charities and Not‑for‑profits Commission Act 2012 sets out the ACNC’s objects:

■ to maintain, protect and enhance public trust and confidence in the Australian not‑for‑profit sector

■ to support and sustain a robust, vibrant, independent and innovative Australian not-for-profit sector

■ to promote the reduction of unnecessary regulatory obligations on the Australian not-for-profit sector.

Further details about the ACNC, including its activities and intended results, are provided in its 2019–20 corporate plan, available at acnc.gov.au


A Appendixes Appendix A – ATO performance

We measure the extent to which we are achieving our purpose as an organisation, through a range of performance indicators that align with our strategic objectives.

Table 3: ATO performance

Strategic objective Performance criteria

Latest result (2017–18)

Performance target

2019–20 2020–21 2021–22 2022–23

G1 Confidence – community confidence in the ATO

Not yet reportedNew measure for 2018–19

65/100 65/100 65/100 65/100

Registration – proportion of companies and individuals registered in the system

Companies registered in the system: 66.2% (a)

Individuals registered in the system: 105.8% (b)

The ATO aims to ensure that all entities that are required to participate in the tax and superannuation systems are registered on the ATO client register, allowing a tolerance of 5% (individuals) and 2% (companies) from the last reporting period (increase or decrease)

Lodgment – proportion of activity statements and income tax returns lodged on time

Activity statements lodged on time: 77.6%Income tax returns (2016–17 returns) lodged on time: 83.0%

Activity statements lodged on time: 78%Income tax returns lodged on time: 83%




Payment – proportion of liabilities paid on time by value

89.5% 88% 88% 88% 88%

Correct reporting – tax gap as a proportion of revenue

Refer to the Commissioner of Taxation annual report 2017–18 (pages 79–81) for detailed information and trends

Reduce the gap to a level as low as practicable given the nature and complexity of the law and the resources available

Debt – ratio of collectable debt to net tax collections

5.7% Below 5.5% Below 5.5% Below 5.5% Below 5.5%

Total revenue effects – tax revenue from all compliance activities

$16 billion $15 billion $15 billion $15 billion $15 billion

Tax assured – proportion of the tax base where the ATO has justified trust that tax paid is correct, based on the proportion of income, deductions and tax offsets assured

45.5% (of total tax reported in 2015–16)Refer to the Commissioner of Taxation annual report 2017–18 (page 82) for more detail

Increase the proportion of the tax base where the ATO has justified trust to a level as high as practicable given the nature and complexity of the law and resources available

G2 Influence – government and Treasury perceptions of the ATO and the quality of our advice

Satisfactory Good Good Good Good


Strategic objective Performance criteria


Performance target

2019–20 2020–21 2021–22 2022–23

C1 Compliance cost – adjusted median cost to individual taxpayers of managing their tax affairs

Unchanged (2016–17 returns)

Remain steady Remain steady Remain steady Remain steady

Digital – proportion of inbound transactions received digitally for key services

88% 90% 90% 90% 90%

C2 Working together – partner perceptions of how the ATO is working together with them to administer the tax and superannuation systems

61% Equal to or better than the 2018–19 result

Equal to or better than the 2018–19 result



W1 Culture – level of employee engagement 6.9 / 10 Equal to or better than the average result for large agencies

Equal to or better than the average result for large agencies



Gender equality – female representation in the senior executive service (SES) and executive level (EL) classifications

SES 44.2% female, 55.8% maleEL 48.6% female, 51.4% male

Approx. 50% of SES and approx. 50% of EL staff




Indigenous representation – proportion of ATO staff who identify as Indigenous

2.1% 2.5% 2.5% 2.5% 2.5%

W2 Staff experience – employee perceptions around whether they have access to the tools and resources needed to perform well

Not yet reportedNew measure for 2018–19





O1 Tax returns – proportion of items that are pre‑filled 87.5% 85% 85% 85% 85%

O2 Availability – key digital systems availability 99.4% 99.5% (excluding planned outages)

99.5% (excluding planned outages)



F1 Budget – ATO manages its operating budget to balance

1.0% deficit +/– 0.6% of budget allocation

+/– 0.6% of budget allocation



Cost of collection – cost to collect $100 $0.74 Consistent with trend

Consistent with trend



NOTES(a) The result compares the number of companies registered by the ATO to the number of companies registered by the Australian Securities and Investments Commission (ASIC). Not all companies

that are registered with ASIC have taxation and reporting requirements. Therefore, the proportion is always expected to be well below 100%.(b) The trends in registration of individuals are closely aligned to population growth. This result is always expected to remain above 100% because the ATO’s definition of ‘resident’ captures a greater

number of people than the ABS estimated resident population. This is particularly true for individuals who have recently migrated to Australia or are seasonal workers.

Appendix A – ATO performance continued


Appendix B – ABR performance

Table 4: ABR performance

Strategic objective

Performance criteria


Performance target

2019–20 2020–21 2021–22 2022–23

ABR Increased use of the ABR as the national business dataset

312 government agencies using ABR Explorer (34% increase)11 agencies using ABR ConnectTotal of 1.031 billion ABN Lookup searches, a 32.5% increase

ABR Explorer – 370ABR Connect – 14ABN Lookup – 1.3 billion




Reduction in the administrative cost to businesses and government in dealing with each other

$1.58 billion $1.95 billion $1.98 billion $2.00 billion $2.00 billion


Appendix C – Administered programs

The ATO contributes to the economic and social wellbeing of Australians, through governing a range of programs that result in transfers and benefits back to the community.

We administer a range of payments and transfers on behalf of the Australian Government, including incentives and rebates delivered through the tax and superannuation systems. Administered programs may be managed by the ATO with policy and delivery assistance

from other Commonwealth agencies, or directly through the tax and superannuation systems.

In many instances, annual fluctuations in the number and value of benefits are beyond our span of control and, therefore, not an accurate measure of our performance.

Accordingly, performance criteria for our administered programs have been divided into two groups:

■ those with specific performance targets ■ those where our performance target is

to administer the program in accordance with the law.

Table 5: Administered programs with specific performance targets

Administered program Performance criteria


Performance target

2019–20 2020–21 2021–22 2022–23

1.6 Junior Minerals Exploration Incentive

All applications received are processed and taxpayers notified of their exploration credit allocation within 28 calendar days of the application period closing

100% 100% 100% Not applicable (the program ends in 2020–21)

Not applicable

Public reporting data uploaded on data.gov.au (and linked to the ato.gov.au website) after determination letters are issued

Target met Within 56 calendar days of the application period closing

Within 56 calendar days of the application period closing

Not applicable (the program ends in 2020–21)

Not applicable

1.14 Superannuation Guarantee Scheme

Superannuation guarantee gap as a proportion of superannuation guarantee contributions

4.8% or $2,790 million (2015–16)

Reduce the gap to a level as low as practicable given the nature and complexity of the law and the resources available

Value of super guarantee charge: ■ raised (including penalties and interest) ■ collected

$1,107.2 million raised$440.9 million collected

$985 million raised$438 million collected




Value of super guarantee entitlements distributed to individuals or superannuation funds

$401.6 million $404 million $362 million $375 million $375 million

Value of super guarantee debt on hand and the amount of super guarantee debt irrecoverable at law or uneconomical to pursue

$1.9 billion debt on hand$238.8 million not pursued

$2.6 billion debt on hand$223 million not pursued




1.17 Bad and Doubtful Debts

Proportion of total tax receivables unlikely to be collected (provision)*

35% Below 35% Below 35% Below 35% Below 35%

1.18 Seafarer Tax Offset Eligible taxpayers are aware of how to claim the offset 100% 100% 100% 100% 100%

* Description updated for 2019–20


Table 6: Administered programs with a performance target of administering the program in accordance with the law

Administered program Performance criteriaLatest result (2017–18)

Performance target 2019–20 to 2022–23

1.5 Australian Screen Production Incentive Value of tax offsets processed $281.8 million

The ATO aims to administer

the program in accordance with

the law

1.7 Fuel Tax Credits Scheme Value of claims $6.8 billion

1.8 National Rental Affordability Scheme Value of tax offsets processed $188.2 million

1.9 Product Stewardship for Oil Value of revenue collected $33.6 million

Value of payments processed $74.9 million

1.10 Research and Development Tax Incentive Value of claims processed for companies claiming the non‑refundable research and development tax offset (38.5% of notional R&D deductions)*

$2.9 billion tax offset paid

Value of claims processed for companies claiming the refundable research and development tax offset (43.5% of notional R&D deductions)*

$2.5 billion tax offset paid

Number of claims processed for companies claiming the non-refundable research and development tax offset (38.5% of notional R&D deductions)*

1,754 claims

Number of claims processed for companies claiming the refundable research and development tax offset (43.5% of notional R&D deductions)*

11,402 claims

Proportion of offsets processed within service standard timeframes

76%

1.11 Low Income Superannuation Tax Offset Value of entitlements paid $779.3 million

1.12 Private Health Insurance Rebate Value of rebates processed $248.8 million

1.13 Superannuation Co-Contribution Scheme Value of entitlements paid $125.8 million

1.15 Targeted Assistance through the Taxation System Value of interest payments processed $14.9 million

1.16 Interest on Overpayments and Early Payments of Tax Value of credit interest applied to client accounts due to processing performance

$13.0 million

* Description updated for 2019–20

Appendix C – Administered programs continued


Acronyms and initialisms

ABN Australian business number

ABR Australian Business Register

ACNC Australian Charities and Not-for-profits Commission

ASIC Australian Securities and Investments Commission

ATO Australian Taxation Office

DIN Director Indentification Numbers

EL executive level

ICT information and communications technology

SBR Standard Business Reporting

SES senior executive service

STP Single Touch Payroll

TPB Tax Practitioners Board

ContactPhone (02) 6216 1111 Email [email protected] Website ato.gov.au

MailDirector, Corporate Planning Enterprise Strategy and Design Australian Taxation Office PO Box 9977 Civic Square ACT 2608

Followtwitter.com/ato_gov_au facebook.com/ato.gov.au youtube.com/AusTaxOffice

Documents

ATO Corporate plan 2019–20 c… · work with digital service providers and other partners to expand, streamline and assure the digital ecosystem Intermediaries engagement and assurance