Section 1: Agency overview and resources
1.1 Strategic direction
There has been no significant change to the strategic direction of the Australian Taxation Office (ATO) from that outlined in the Portfolio Budget Statements 2012-13 (pages 181-182).
The ATO is seeking $19.0 million in departmental funding through Appropriation Bill (No. 3) 2012-13. This relates to an additional $36.5 million which is offset by a reduction of $17.5 million.
The additional $36.5 million relates to $0.1 million for supplementation for fringe benefits tax changes to living-away-from-home allowances and benefits, $0.2 million for the 2015 Cricket World Cup, and the following measures outlined in the Mid-Year Economic and Fiscal Outlook 2012-13:
- Monthly PAYG instalments for large companies ($2.4 million);
- Private Health Insurance Rebate — indexing the Government’s contribution ($2.2 million);
- Private Health Insurance Rebate — removal of rebate on lifetime health cover loading ($1.2 million);
- Superannuation — reform of arrangements relating to transfer of lost member accounts to the ATO ($5.6 million);
- Superannuation — reform of SMSF levy arrangements ($0.6 million); and
- Tax compliance — maintaining the integrity of the tax and superannuation system ($24.3 million).
This funding is offset by a reduction of $17.5 million that relates to the Company tax cut — do not proceed ($0.6 million) and Fire Service Levy — reduction ($0.2 million) measures as outlined in Budget Paper No. 2, Budget Measures 2012-13, and the following measures outlined in the Mid-Year Economic and Fiscal Outlook 2012-13:
- SuperStream — reduction in Superannuation Supervisory levy ($2.0 million); and
- Targeted savings — public service efficiencies ($14.8 million).
The ATO is also seeking an additional $0.3 million in administered items through Appropriation Bill (No. 3) 2012-13. This is associated with the Superannuation — reform of arrangements relating to transfer of lost member accounts to the ATO measure outlined in the Mid-Year Economic and Fiscal Outlook 2012-13.
The ATO is also seeking an additional $1.7 million as an equity injection through Appropriation Bill (No. 4) 2012-13. This is associated with the Superannuation — reform of arrangements relating to transfer of lost member accounts to the ATO measure outlined in the Mid-Year Economic and Fiscal Outlook 2012-13.
1.2 Agency resource statement
Table 1.1 shows the total resources from all origins. The table summarises how resources will be applied by outcome and departmental classification.
| Estimates as at Budget 2012-13 $'000 |
+ | Proposed Additional Estimates 2012-13 $'000 |
= | Total estimate at Additional Estimates 2012-13 $'000 |
Total available appropriation 2011-12 $'000 |
||
|---|---|---|---|---|---|---|---|
| Ordinary annual services | |||||||
| Departmental appropriation | |||||||
| Prior year departmental appropriation | 429,913 | - | 429,913 | - | |||
| Departmental appropriation1 | 3,333,657 | 18,995 | 2 | 3,352,652 | 3,277,508 | ||
| s31 Relevant agency receipts | 47,329 | 23,586 | 70,915 | 110,674 | |||
| Total | 3,810,899 | 42,581 | 3,853,480 | 3,388,182 | |||
| Administered expenses | |||||||
| Outcome 1 | 4,286 | 250 | 4,536 | 537 | |||
| Total | 4,286 | 250 | 4,536 | 537 | |||
| Total ordinary annual services | A | 3,815,185 | 42,831 | 3,858,016 | 3,388,719 | ||
| Other services | |||||||
| Departmental non-operating | |||||||
| Equity injections | 62,975 | 1,674 | 3 | 64,649 | 32,175 | ||
| Total other services | B | 62,975 | 1,674 | 64,649 | 32,175 | ||
| Total available annual appropriations (A+B) | 3,878,160 | 44,505 | 3,922,665 | 3,420,894 | |||
| Special appropriations | |||||||
| Product Grants and Benefits | |||||||
| Administration Act 2000 -Cleaner Fuel Grants | 33,501 | 6,499 | 40,000 | 31,906 | |||
| Product Stewardship for oil | 44,000 | - | 44,000 | 40,000 | |||
| Superannuation Guarantee(Administration) Act 1992 | 319,000 | - | 319,000 | 303,000 | |||
| Taxation Administration Act 1953 -section 16 (Non-refund items)4 | 8,809,219 |   ; |
236,000 | 9,045,219 | 8,419,620 | ||
| Total special appropriations | C | 9,205,720 | 242,499 | 9,448,219 | 8,794,526 | ||
| Total appropriations excluding special accounts (A+B+C) | 13,083,880 | 287,004 | 13,370,884 | 12,215,420 | |||
| Special accounts | |||||||
| Opening balance | 84,878 | - | 84,878 | 86,862 | |||
| Appropriation receipts | 19,500 | (16,900) | 2,600 | 9,089 | |||
| Non-appropriation receipts to special accounts | 52,832 | (1,862) | 50,970 | 49,984 | |||
| Total special account | D | 157,210 | (18,762) | 138,448 | 145,935 | ||
| Total resourcing (A+B+C+D) | 13,241,090 | 268,242 | 13,509,332 | 12,361,355 | |||
| Less receipts from other sources and credited to special accounts | 19,500 | (16,900) | 2,600 | 9,089 | |||
| Total net resourcing for ATO | 13,221,590 | 285,142 | 13,506,732 | 12,352,266 |
1. Includes $110.9 million in 2012-13 for the departmental capital budget (also refer to Table 3.2.5).
2. Appropriation Bill (No. 3) 2012-13.
3. Appropriation Bill (No. 4) 2012-13.
4. These figures relate to administered expenses including fuel tax credits, superannuation co-contributions, low income superannuation contributions and research and development subsidies. Tax refund items for 2011-12 are $83.4 billion including $87 million paid via the Australian Customs Service (ACS) on the ATO’s behalf. Estimated tax refund items for 2012-13 are $92.2 billion (including $125 million paid via the ACS on the ATO’s behalf).
1.3 Agency measures
Table 1.2 summarises new Government measures taken since the 2012-13 Budget. The table is split into expense and capital measures, with the affected program identified.
| Program | 2012-13 $'000 |
2013-14 $'000 |
2014-15 $'000 |
2015-16 $'000 |
|
|---|---|---|---|---|---|
| Expense measures | |||||
| Conservation tillage offset - change to eligibility criteria | |||||
| Administered expenses | 1.22 | - | - | - | - |
| Fire Service Levy - reduction(a) | |||||
| Departmental expenses | 1.1 | (178) | (186) | (194) | (194) |
| Linking the Australian carbon pricing mechanism and European Union emissions trading scheme | |||||
| Administered expenses | 1.13 | - | - | - | - |
| Monthly PAYG instalments for large companies | |||||
| Departmental expenses | 1.1 | 2,447 | 4,049 | 2,606 | 2,464 |
| More convenient access to online government services | |||||
| Departmental expenses | 1.1 | - | - | - | - |
| Private Health Insurance Rebate | |||||
| - indexing the Government's contribution | |||||
| Departmental expenses | 1.1 | 2,161 | 1,575 | 98 | 99 |
| - removal of rebate on lifetime health cover loading | |||||
| Departmental expenses | 1.1 | 1,209 | 1,142 | 2,843 | 99 |
| Superannuation | |||||
| - reform of arrangements relating to transfer of lost member accounts to the ATO(b) | |||||
| Departmental expenses | 1.1 | 5,563 | 42,860 | 5,621 | 5,123 |
| Administered expenses | 1.1 | 250 | - | - | - |
| Administered expenses | 1.22 | 34,000 | 1,000 | 1,000 | 1,000 |
| 39,813 | 43,860 | 6,621 | 6,123 | ||
| - reform of SMSF levy arrangements(b) | |||||
| Departmental expenses | 1.1 | 557 | 1,257 | 770 | 450 |
| SuperStream - reduction in Superannuation Supervisory levy | |||||
| Departmental expenses | 1.1 | (2,000) | (7,442) | (7,888) | (6,864) |
| Administered expenses | 1.1 | - | (2,136) | (558) | (485) |
| (2,000) | (9,578) | (8,446) | (7,349) | ||
| Targeted savings - public service efficiencies | |||||
| Departmental expenses | 1.1 | (14,752) | (14,265) | (14,347) | (14,133) |
| Tax compliance - maintaining the integrity of the tax and superannuation system(b) | |||||
| Departmental expenses | 1.1 | 24,338 | 122,787 | 120,714 | 122,041 |
| Administered expenses | 1.1 | - | 30 | 30 | 31 |
| Administered expenses | 1.12 | - | 17,900 | 18,300 | 18,700 |
| 24,338 | 140,717 | 139,044 | 140,772 | ||
| Total expense measures | |||||
| Departmental | 19,345 | 151,777 | 110,223 | 109,085 | |
| Administered | 34,250 | 16,794 | 18,772 | 19,246 | |
| 53,595 | 168,571 | 128,995 | 128,331 | ||
| Capital measures | |||||
| Superannuation | |||||
| - reform of arrangements relating to transfer of lost member accounts to the ATO | 1.1 | 1,674 | 1,676 | - | - |
| Total capital measures | 1,674 | 1,676 | - | - |
Note: Details of these measures, except that denoted (a), are in the Mid-Year Economic and Fiscal Outlook 2012-13.
(a) This measure was included in Budget Paper No. 2, Budget Measures 2012-13.
(b) These measures also relate to revenue measures.
1.4 Additional estimates and variations
Table 1.3 details the additional estimates resulting from new measures since the 2012-13 Budget. Table 1.4 details the additional estimates resulting from other variations since the 2012-13 Budget.
| Program impacted |
2012-13 $'000 |
2013-14 $'000 |
2014-15 $'000 |
2015-16 $'000 |
|
|---|---|---|---|---|---|
| Outcome 1 | |||||
| Increase in estimates | |||||
| Monthly PAYG instalments for large companies | |||||
| Departmental expenses | 1.1 | 2,447 | 4,049 | 2,606 | 2,464 |
| Private Health Insurance Rebate | |||||
| - indexing the Government's contribution | |||||
| Departmental expenses | 1.1 | 2,161 | 1,575 | 98 | 99 |
| - removal of rebate on lifetime health cover loading | |||||
| Departmental expenses | 1.1 | 1,209 | 1,142 | 2,843 | 99 |
| Superannuation | |||||
| - reform of arrangements relating to transfer of lost member accounts to the ATO | |||||
| Departmental expenses | 1.1 | 5,563 | 42,860 | 5,621 | 5,123 |
| Administered expenses | 1.1 | 250 | - | - | - |
| - reform of SMSF levy arrangements | |||||
| Departmental expenses | 1.1 | 557 | 1,257 | 770 | 450 |
| Tax compliance - maintaining the integrity of the tax and superannuation system | |||||
| Departmental expenses | 1.1 | 24,338 | 122,787 | 120,714 | 122,041 |
| Decrease in estimates | |||||
| Company tax cut - do not proceed(a) | |||||
| Departmental expenses | 1.1 | (600) | (1,200) | - | - |
| Fire Service Levy - reduction | |||||
| Departmental expenses | 1.1 | (178) | (186) | (194) | (194) |
| SuperStream - reduction in Superannuation Supervisory levy | |||||
| Departmental expenses | 1.1 | (2,000) | (7,442) | (7,888) | (6,864) |
| Targeted savings - public service efficiencies | |||||
| Departmental expenses | 1.1 | (14,752) | (14,265) | (14,347) | (14,133) |
| Net impact on estimates for outcome 1 | |||||
| Departmental | 18,745 | 150,577 | 110,223 | 109,085 | |
| Administered | 250 | - | - | - | |
| 18,995 | 150,577 | 110,223 | 109,085 | ||
| Increase in estimates (capital) | |||||
| Superannuation | |||||
| - reform of arrangements relating to transfer of lost member accounts to the ATO | 1.1 | 1,674 | 1,676 | - | - |
| Net impact on estimates for outcome 1 (capital) | 1,674 | 1,676 | - | - |
(a) This was a measure included in Budget Paper No. 2, Budget Measures 2012-13.
| Program impacted |
2012-13 $'000 |
2013-14 $'000 |
2014-15 $'000 |
2015-16 $'000 |
Outcome 1 |
|---|---|---|---|---|---|
| Increase in estimates | |||||
| 2015 Cricket World Cup | |||||
| Departmental expenses | 1.1 | 150 | 32 | 1,226 | 32 |
| Supplementation for fringe benefits tax changes to living-away-from-home allowances and benefits | |||||
| Departmental expenses | 1.1 | 100 | 100 | 200 | 200 |
| Net impact on estimates for outcome 1 | 250 | 132 | 1,426 | 232 |
1.5 Breakdown of additional estimates by Appropriation Bill
Table 1.5 details the additional estimates sought for the ATO through Appropriation Bill No. 3. Table 1.6 details the additional estimates sought for the ATO through Appropriation Bill No. 4.
| 2011-12 available $'000 |
2012-13 budget $'000 |
2012-13 revised $'000 |
Additional estimates $'000 |
Reduced estimates $'000 |
|
|---|---|---|---|---|---|
| ORDINARY ANNUAL SERVICES | |||||
| Outcome 1: Confidence in the administration of aspects of Australia’s taxation and superannuation systems through helping people understand their rights and obligations, improving ease of compliance and access to benefits, and managing non-compliance with the law | |||||
| Departmental | 3,277,508 | 3,333,657 | 3,352,652 | 18,995 | - |
| Administered | 537 | 4,286 | 4,536 | 250 | - |
| Total | 3,278,045 | 3,337,943 | 3,357,188 | 19,245 | - |
| 2011-12 available $'000 |
2012-13 budget $'000 |
2012-13 revised $'000 |
Additional estimates $'000 |
Reduced estimates $'000 |
|
|---|---|---|---|---|---|
| Non-operating | |||||
| Equity Injection | 32,175 | 62,975 | 64,649 | 1,674 | - |
| Total | 32,175 | 62,975 | 64,649 | 1,674 | - |
Section 2: Revisions to agency outcomes and planned performance
2.1 Resources and performance information
There has been no change to the ATO’s outcome or outcome strategy from that included in the Portfolio Budget Statements 2012-13 (page 187).
There has been no change to the program objective, expenses, deliverables or key performance indicators for programs 1.2 to 1.22 that affect Appropriation Bills No. 3 and No. 4.
| Outcome 1: Confidence in the administration of aspects of Australia’s taxation and superannuation systems through helping people understand their rights and obligations, improving ease of compliance and access to benefits, and managing non-compliance with the law | 2011-12
Actual |
2012-13 Revised estimated expenses $'000 |
|---|---|---|
| Program 1.1: Australian Taxation Office | ||
| Administered expenses | ||
| Ordinary annual services (Appropriation Bill No. 1 and No. 3) | 528 | 4,536 |
| Departmental expenses | ||
| Departmental appropriation | 3,063,492 | 3,121,612 |
| Expenses not requiring appropriation in budget year | 222,436 | 131,724 |
| Total for Program 1.1 | 3,286,456 | 3,257,872 |
| 2011-12 | 2012-13 | |
| Average staffing level (number) | 21,864 | 21,440 |
Program 1.1: Australian Taxation Office
There has been no change to the program objective, deliverables or key performance indicators included in the Portfolio Budget Statements 2012-13.
| 2011-12 Actuals $'000 |
2012-13 Revised budget $'000 |
2013-14 Forward year 1 $'000 |
2014-15 Forward year 2 $'000 |
2015-16 Forward year 3 $'000 |
|
|---|---|---|---|---|---|
| Program Component 1.1.1 - Our expertise supports government priorities and encourages community participation | |||||
| Annual departmental expenses: | |||||
| Departmental items | 447,337 | 443,370 | 450,641 | 447,728 | 439,790 |
| Total component expenses | 447,337 | 443,370 | 450,641 | 447,728 | 439,790 |
| Program Component 1.1.2 - We support people willing to participate and make it as easy as possible for them to fulfil their responsibilities at minimum cost | |||||
| Annual departmental expenses: | |||||
| Departmental items | 1,094,448 | 1,096,507 | 1,114,488 | 1,107,283 | 1,087,653 |
| Total component expenses | 1,094,448 | 1,096,507 | 1,114,488 | 1,107,283 | 1,087,653 |
| Program Component 1.1.3 - We support and protect people by dealing with those not willing to comply | |||||
| Annual departmental expenses: | |||||
| Departmental items | 1,744,143 | 1,713,459 | 1,741,558 | 1,730,299 | 1,699,624 |
| Annual administered expenses: | |||||
| Administered items | 528 | 4,536 | 2,497 | 5,592 | 3,110 |
| Total component expenses | 1,744,671 | 1,717,995 | 1,744,055 | 1,735,891 | 1,702,734 |
| Total program expenses | 3,286,456 | 3,257,872 | 3,309,184 | 3,290,902 | 3,230,177 |
Section 3: Explanatory tables and budgeted financial statements
3.1 Explanatory tables
3.1.1 Estimates of special account flows
Special accounts provide a means to set aside and record amounts used for specific purposes. Table 3.1.1 shows the expected additions (receipts) and reductions (payments) for each account used by the ATO.
| Outcome | Opening balance 2012-13 2011-12 $'000 |
Receipts Non- Appropriated 2012-13 2011-12 $'000 |
Receipts Appropriated 2012-13 2011-12 $'000 |
Payments 2012-13 2011-12 $'000 |
Closing balance 2012-13 2011-12 $'000 |
|
|---|---|---|---|---|---|---|
| Excise Security Deposits | 1 | 401 | - | - | - | 401 |
| Account (A) | 59 | 348 | 6 | - | 401 | |
| Services for Other Entities and Trust Moneys Special | 1 | 1,814 | 10,000 | 10,000 | - | 1,814 |
| Account (A) | 1,632 | 9,766 | 9,584 | - | 1,814 | |
| Superannuation Holding | 1 | 68,287 | 2,600 | 8,300 | - | 62,587 |
| Accounts Special Account (A) | 71,757 | 9,089 | 12,559 | - | 68,287 | |
| Valuation Services Special | 1 | 14,376 | 40,970 | 43,028 | - | 12,318 |
| Account (D) | 13,414 | 39,870 | 38,908 | - | 14,376 | |
| Total special accounts 2012-13 Budget estimate | 84,878 | 53,570 | 61,328 | - | 77,120 | |
| Total special accounts 2011-12 actual | 86,862 | 59,073 | 61,057 | - | 84,878 |
(A) Administered.
(D) Departmental.
3.2 Budgeted financial statements
3.2.1 Analysis of budgeted financial statements
Budgeted departmental comprehensive income statement
The ATO is budgeting for a balanced budget in 2012-13 after income tax equivalents expense from the Australian Valuation Office (AVO). This excludes the impact of Operation Sunlight changes to funding whereby depreciation and amortisation expenses are not funded by appropriation from 2010-11 onward.
The budgeted departmental comprehensive income statement also reflects changes arising from Budget measures as outlined in Table 1.2.
Budgeted departmental balance sheet
The ATO’s assets are predominantly non-financial assets. In 2012-13, the increase in non-financial assets reflects the continued development or improvement of internally developed systems and software in support of the Government’s ‘Stronger Super’ initiatives. The ATO is also continuing to refresh a number of property holdings which are subject to lease expiry.
The ATO’s liabilities continue to be predominantly employee entitlements.
3.2.2 Budgeted financial statements
Departmental financial statements
| Actual 2011-12 $'000 |
Revised budget 2012-13 $'000 |
Forward estimate 2013-14 $'000 |
Forward estimate 2014-15 $'000 |
Forward estimate 2015-16 $'000 |
|
|---|---|---|---|---|---|
| EXPENSES | |||||
| Employee benefits | 2,238,587 | 2,182,735 | 2,223,228 | 2,198,927 | 2,142,149 |
| Supplier | 1,077,692 | 1,170,157 | 1,168,314 | 1,167,469 | 1,163,325 |
| Depreciation and amortisation | 126,169 | 128,601 | 131,396 | 133,975 | 136,599 |
| Income tax | 1,887 | 1,314 | 1,183 | 1,064 | 1,118 |
| Total expenses | 3,444,335 | 3,482,807 | 3,524,121 | 3,501,435 | 3,443,191 |
| LESS: | |||||
| OWN-SOURCE INCOME | |||||
| Revenue | |||||
| Sale of goods and rendering of services | 91,742 | 107,239 | 106,702 | 106,679 | 109,049 |
| Other revenue | 6,519 | 547 | 525 | 500 | 500 |
| Total revenue | 98,261 | 107,786 | 107,227 | 107,179 | 109,549 |
| Gains | |||||
| Other | 3,271 | 3,937 | 4,095 | 4,095 | 4,095 |
| Total gains | 3,271 | 3,937 | 4,095 | 4,095 | 4,095 |
| Total own-source income | 101,532 | 111,723 | 111,322 | 111,274 | 113,644 |
| Net cost of (contribution by) services | 3,342,803 | 3,371,084 | 3,412,799 | 3,390,161 | 3,329,547 |
| Appropriation revenue | 3,131,020 | 3,241,768 | 3,281,317 | 3,256,681 | 3,193,925 |
| Surplus (deficit) attributable to the Australian Government | (211,783) | (129,316) | (131,482) | (133,480) | (135,622) |
| 2011-12 $'000 |
2012-13 $'000 |
2013-14 $'000 |
2014-15 $'000 |
2015-16 $'000 |
|
|---|---|---|---|---|---|
| Total Comprehensive Income (loss) less depreciation/amortisation expenses previously funded through revenue appropriations | (85,614) | (715) | (86) | 495 | 977 |
| plus depreciation/amortisation expenses previously funded through revenue appropriations1 | 125,208 | 127,712 | 130,266 | 132,871 | 135,529 |
| Total Comprehensive Income (loss) - as per the Statement of Comprehensive Income | 39,594 | 126,997 | 130,180 | 133,366 | 136,506 |
Prepared on Australian Accounting Standards basis.
| Actual 2011-12 $'000 |
Revised budget 2012-13 $'000 |
Forward estimate 2013-14 $'000 |
Forward estimate 2014-15 $'000 |
Forward estimate 2015-16 $'000 |
|
|---|---|---|---|---|---|
| ASSETS | |||||
| Financial assets | |||||
| Cash and equivalents | 74,573 | 32,781 | 29,515 | 29,117 | 29,184 |
| Trade and other receivables | 416,032 | 466,814 | 473,727 | 501,518 | 440,329 |
| Total financial assets | 490,605 | 499,595 | 503,242 | 530,635 | 469,513 |
| Non-financial assets | |||||
| Land and buildings | 203,644 | 227,449 | 246,577 | 234,483 | 269,863 |
| Infrastructure, plant and equipment | 81,397 | 77,197 | 68,943 | 78,284 | 59,683 |
| Intangibles | 393,235 | 427,197 | 450,721 | 443,017 | 411,241 |
| Other | 46,537 | 46,407 | 45,593 | 44,898 | 44,296 |
| Total non-financial assets | 724,813 | 778,250 | 811,834 | 800,682 | 785,083 |
| Total assets | 1,215,418 | 1,277,845 | 1,315,076 | 1,331,317 | 1,254,596 |
| LIABILITIES | |||||
| Interest bearing liabilities | |||||
| Leases | 76,852 | 72,695 | 72,354 | 72,314 | 72,293 |
| Total interest bearing liabilities | 76,852 | 72,695 | 72,354 | 72,314 | 72,293 |
| Provisions | |||||
| Employees | 857,291 | 873,429 | 900,675 | 924,880 | 847,810 |
| Total provisions | 857,291 | 873,429 | 900,675 | 924,880 | 847,810 |
| Payables | |||||
| Suppliers | 232,478 | 239,274 | 246,280 | 251,179 | 265,855 |
| Dividends | 764 | - | - | - | - |
| Other | 14,434 | 12,631 | 12,605 | 12,576 | 12,590 |
| Total payables | 247,676 | 251,905 | 258,885 | 263,755 | 278,445 |
| Total liabilities | 1,181,819 | 1,198,029 | 1,231,914 | 1,260,949 | 1,198,548 |
| Net assets | 33,599 | 79,816 | 83,162 | 70,368 | 56,048 |
| EQUITY | |||||
| Contributed equity | 638,872 | 814,405 | 949,233 | 1,069,917 | 1,191,219 |
| Reserves | 98,050 | 98,050 | 98,050 | 98,050 | 98,050 |
| Retained surpluses or accumulated deficits | (703,323) | (832,639) | (964,121) | (1,097,599) | (1,233,221) |
| Total equity | 33,599 | 79,816 | 83,162 | 70,368 | 56,048 |
| Current assets | 514,779 | 536,695 | 552,332 | 559,153 | 526,930 |
| Non-current assets | 700,639 | 741,150 | 762,744 | 772,164 | 727,666 |
| Current liabilities | 556,259 | 563,074 | 579,000 | 592,646 | 563,318 |
| Non-current liabilities | 625,560 | 634,955 | 652,914 | 668,303 | 635,230 |
Prepared on Australian Accounting Standards basis.
| Actual 2011-12 $'000 |
Revised budget 2012-13 $'000 |
Forward estimate 2013-14 $'000 |
Forward estimate 2014-15 $'000 |
Forward estimate 2015-16 $'000 |
|
|---|---|---|---|---|---|
| OPERATING ACTIVITIES | |||||
| Cash received | |||||
| Goods and services | 92,176 | 110,536 | 109,771 | 109,440 | 112,320 |
| Appropriations | 3,073,208 | 3,159,888 | 3,262,679 | 3,217,407 | 3,242,601 |
| Interest | 550 | 472 | 450 | 425 | 425 |
| Other | 223,166 | 183,959 | 184,116 | 184,933 | 185,067 |
| Total cash received | 3,389,100 | 3,454,855 | 3,557,016 | 3,512,205 | 3,540,413 |
| Cash used | |||||
| Employees | 2,078,066 | 2,136,965 | 2,183,847 | 2,162,456 | 2,206,386 |
| Suppliers | 1,113,385 | 1,264,309 | 1,255,450 | 1,257,067 | 1,241,519 |
| Income taxes paid | 1,247 | 1,499 | 1,358 | 1,223 | 1,284 |
| Other | 118,506 | 88,649 | 88,824 | 89,431 | 90,857 |
| Total cash used | 3,311,204 | 3,491,422 | 3,529,479 | 3,510,177 | 3,540,046 |
| Net cash from or (used by) operating activities | 77,896 | (36,567) | 27,537 | 2,028 | 367 |
| INVESTING ACTIVITIES | |||||
| Cash received | |||||
| Proceeds from sales of property, plant and equipment | 38 | - | - | - | - |
| Total cash received | 38 | - | - | - | - |
| Cash used | |||||
| Purchase of property, plant and equipment | 182,612 | 180,758 | 165,631 | 123,110 | 121,602 |
| Total cash used | 182,612 | 180,758 | 165,631 | 123,110 | 121,602 |
| Net cash from or (used by) investing activities | (182,574) | (180,758) | (165,631) | (123,110) | (121,602) |
| FINANCING ACTIVITIES | |||||
| Cash received | |||||
| Appropriations - contributed equity | 145,440 | 175,533 | 134,828 | 120,684 | 121,302 |
| Total cash received | 145,440 | 175,533 | 134,828 | 120,684 | 121,302 |
| Cash used | |||||
| Dividends paid | 1,653 | - | - | - | - |
| Total cash used | 1,653 | - | - | - | - |
| Net cash from or (used by) financing activities | 143,787 | 175,533 | 134,828 | 120,684 | 121,302 |
| Net Cash from/(to) Clearing Accounts | - | - | - | - | - |
| Manual Allocations | - | - | - | - | - |
| Net increase or (decrease) in cash held | 39,109 | (41,792) | (3,266) | (398) | 67 |
| Cash at the beginning of the reporting period | 35,464 | 74,573 | 32,781 | 29,515 | 29,117 |
| Cash at the end of the reporting period | 74,573 | 32,781 | 29,515 | 29,117 | 29,184 |
Prepared on Australian Accounting Standards basis.
| Retained surpluses $'000 |
Asset revaluation reserve $'000 |
Other reserves $'000 |
Contributed equity/ capital $'000 |
Total equity $'000 |
|
|---|---|---|---|---|---|
| Opening balance as at 1 July 2012 | |||||
| Balance carried forward from previous period | (703,323) | 98,050 | - | 638,872 | 33,599 |
| Adjusted opening balance | (703,323) | 98,050 | - | 638,872 | 33,599 |
| Transactions with owners | |||||
| Operating result after extraordinary items | (129,316) | - | - | - | (129,316) |
| Distribution to owners | |||||
| Returns on capital dividends | - | - | - | - | - |
| Contribution by owners | |||||
| Appropriation (equity injection) | - | - | - | - | - |
| Injection for capital works | - | - | - | 64,649 | 64,649 |
| Injection for departmental capital budget | - | - | - | 110,884 | 110,884 |
| Total transactions with owners | (129,316) | - | - | 175,533 | 46,217 |
| Estimated closing balance as at 30 June 2013 | (832,639) | 98,050 | - | 814,405 | 79,816 |
Prepared on Australian Accounting Standards basis.
| Actual 2011-12 $'000 |
Revised budget 2012-13 $'000 |
Forward estimate 2013-14 $'000 |
Forward estimate 2014-15 $'000 |
Forward estimate 2015-16 $'000 |
|
|---|---|---|---|---|---|
| NEW CAPITAL APPROPRIATIONS | |||||
| Capital budget - Bill 1 - DCB | 137,820 | 110,884 | 111,032 | 112,216 | 113,093 |
| Equity injections - Bill 2 | 32,175 | 64,649 | 23,796 | 8,468 | 8,209 |
| Total new capital appropriations | 169,995 | 175,533 | 134,828 | 120,684 | 121,302 |
| Provided for: | &nbs p; |
||||
| Purchase of non-financial assets | 169,995 | 175,533 | 134,828 | 120,684 | 121,302 |
| Total items | 169,995 | 175,533 | 134,828 | 120,684 | 121,302 |
| PURCHASE OF NON-FINANCIAL ASSETS | |||||
| Funded by capital appropriations | 30,024 | 51,328 | 52,099 | 10,594 | 8,209 |
| Funded by capital appropriation - DCB | 137,741 | 110,884 | 111,032 | 112,216 | 113,093 |
| Funded internally from departmental resources | 35,999 | 18,546 | 2,500 | 300 | 300 |
| TOTAL | 203,764 | 180,758 | 165,631 | 123,110 | 121,602 |
| RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE | |||||
| Total purchases | 203,764 | 180,758 | 165,631 | 123,110 | 121,602 |
| Total cash used to acquire assets | 203,764 | 180,758 | 165,631 | 123,110 | 121,602 |
Prepared on Australian Accounting Standards basis.
| Buildings $'000 |
Other infrastructure, plant and equipment $'000 |
Intangibles $'000 |
Total $'000 |
|
|---|---|---|---|---|
| As at 1 July 2012 | ||||
| Gross book value | 212,718 | 138,760 | 890,536 | 1,242,014 |
| Accumulated depreciation/amortisation and impairment | 9,074 | 55,998 | 497,256 | 562,328 |
| Opening net book balance | 203,644 | 82,762 | 393,280 | 679,686 |
| Capital asset additions | ||||
| By purchase - appropriation equity | - | - | 51,328 | 51,328 |
| By purchase - appropriation ordinary annual services | 41,866 | 18,863 | 50,155 | 110,884 |
| By purchase - other | 14,629 | 3,671 | 246 | 18,546 |
| Total additions | 56,495 | 22,534 | 101,729 | 180,758 |
| Other movements | ||||
| Depreciation/amortisation expense | 32,690 | 28,099 | 67,812 | 128,601 |
| Total other movements | 32,690 | 28,099 | 67,812 | 128,601 |
| As at 30 June 2013 | ||||
| Gross book value | 269,213 | 161,294 | 992,265 | 1,422,772 |
| Accumulated depreciation/amortisationand impairment | 41,764 | 84,097 | 565,068 | 690,929 |
| Closing net book balance | 227,449 | 77,197 | 427,197 | 731,843 |
Prepared on Australian Accounting Standards basis.
Schedule of administered activity
| Actual 2011-12 $'000 |
Revised budget 2012-13 $'000 |
Forward estimate 2013-14 $'000 |
Forward estimate 2014-15 $'000 |
Forward estimate 2015-16 $'000 |
|
|---|---|---|---|---|---|
| EXPENSES ADMINISTERED ON BEHALF OF GOVERNMENT | |||||
| Suppliers | 528 | 4,536 | 2,497 | 5,592 | 3,110 |
| Subsidies | 7,242,826 | 7,256,619 | 7,951,544 | 7,693,195 | 7,813,797 |
| Personal benefits | 717,856 | 1,341,600 | 1,375,600 | 1,366,700 | 1,395,400 |
| Finance costs | 668,413 | 500,000 | 500,000 | 500,000 | 500,000 |
| Write-down and impairment of assets | 6,114,902 | 6,672,536 | 6,055,728 | 6,356,996 | 6,780,110 |
| Other expenses | 339,119 | 350,000 | 349,900 | 363,300 | 376,700 |
| Total expenses administered on behalf of Government | 15,083,644 | 16,125,291 | 16,235,269 | 16,285,783 | 16,869,117 |
| LESS: | |||||
| OWN-SOURCE INCOME | |||||
| Own-source revenue | |||||
| Taxation revenue | |||||
| Income tax | 231,290,771 | 254,810,000 | 279,430,000 | 293,529,000 | 312,873,000 |
| Indirect tax | 75,484,526 | 78,450,000 | 81,370,000 | 85,100,000 | 88,820,000 |
| Other taxes | 761,125 | 1,110,952 | 816,897 | 739,986 | 766,091 |
| Total taxation revenue | 307,536,422 | 334,370,952 | 361,616,897 | 379,368,986 | 402,459,091 |
| Total own-sourced income administered on behalf of Government | 307,536,422 | 334,370,952 | 361,616,897 | 379,368,986 | 402,459,091 |
| Net Cost of (contribution by) services | |||||
| Surplus (Deficit) | 292,452,778 | 318,245,661 | 345,381,628 | 363,083,203 | 385,589,974 |
Prepared on Australian Accounting Standards basis.
| Actual 2011-12 $'000 |
Revised budget 2012-13 $'000 |
Forward estimate 2013-14 $'000 |
Forward estimate 2014-15 $'000 |
Forward estimate 2015-16 $'000 |
|
|---|---|---|---|---|---|
| ASSETS ADMINISTERED ON BEHALF OF GOVERNMENT | |||||
| Financial assets | |||||
| Cash and cash equivalents | 480,056 | 480,056 | 480,056 | 480,056 | 480,056 |
| Receivables | 17,310,820 | 19,128,284 | 21,563,356 | 24,051,560 | 26,775,050 |
| Accrued revenues | 10,626,630 | 11,156,630 | 11,241,630 | 11,861,630 | 12,521,630 |
| Total financial assets | 28,417,506 | 30,764,970 | 33,285,042 | 36,393,246 | 39,776,736 |
| Total assets administered on behalf of government | 28,417,506 | 30,764,970 | 33,285,042 | 36,393,246 | 39,776,736 |
| LIABILITIES ADMINISTERED ON BEHALF OF GOVERNMENT | |||||
| Provisions | |||||
| Taxation refunds provided | 2,705,293 | 2,705,293 | 2,705,293 | 2,705,293 | 2,705,293 |
| Other provisions | 686,943 | 713,943 | 671,943 | 692,943 | 714,943 |
| Total provisions | 3,392,236 | 3,419,236 | 3,377,236 | 3,398,236 | 3,420,236 |
| Payables | |||||
| Subsidies | 2,183,255 | 2,389,254 | 2,615,179 | 2,650,830 | 2,749,432 |
| Personal benefits payable | 961,802 | 1,489,402 | 1,627,202 | 1,636,302 | 1,679,202 |
| Other payables | 916,026 | 1,491,326 | 1,348,426 | 1,200,826 | 1,047,826 |
| Total payables | 4,061,083 | 5,369,982 | 5,590,807 | 5,487,958 | 5,476,460 |
| Total liabilities administered on behalf of government | 7,453,319 | 8,789,218 | 8,968,043 | 8,886,194 | 8,896,696 |
| Net assets/(liabilities) | 20,964,187 | 21,975,752 | 24,316,999 | 27,507,052 | 30,880,040 |
Prepared on Australian Accounting Standards basis.
| Actual 2011-12 $'000 |
Revised budget 2012-13 $'000 |
Forward estimate 2013-14 $'000 |
Forward estimate 2014-15 $'000 |
Forward estimate 2015-16 $'000 |
|
|---|---|---|---|---|---|
| OPERATING ACTIVITIES | |||||
| Cash received | |||||
| Taxes | 301,378,146 | 324,450,000 | 352,360,000 | 369,239,000 | 391,693,000 |
| Other | 9,089 | 1,453,552 | 555,797 | 539,086 | 477,191 |
| Total cash received | 301,387,235 | 325,903,552 | 352,915,797 | 369,778,086 | 392,170,191 |
| Cash used | |||||
| Borrowing costs | 546,647 | 500,000 | 500,000 | 500,000 | 500,000 |
| Subsidies paid | 6,575,290 | 7,050,620 | 7,725,619 | 7,657,544 | 7,715,195 |
| Personal benefits | 1,508,004 | 814,000 | 1,237,800 | 1,357,600 | 1,352,500 |
| Payments to suppliers | - | 4,536 | 2,497 | 5,592 | 3,110 |
| Other | 368,254 | 300,300 | 409,500 | 364,200 | 382,400 |
| Total cash used | 8,998,195 | 8,669,456 | 9,875,416 | 9,884,936 | 9,953,205 |
| Net cash from or (used by) operating activities | 292,389,040 | 317,234,096 | 343,040,381 | 359,893,150 | 382,216,986 |
| FINANCING ACTIVITIES | |||||
| Cash received | |||||
| Cash from Official Public | |||||
| Account | 8,935,745 | 8,669,456 | 9,875,416 | 9,884,936 | 9,953,205 |
| Total cash received | 8,935,745 | 8,669,456 | 9,875,416 | 9,884,936 | 9,953,205 |
| Cash used | |||||
| Cash to Official Public Account | 301,135,596 | 325,903,552 | 352,915,797 | 369,778,086 | 392,170,191 |
| Total cash used | 301,135,596 | 325,903,552 | 352,915,797 | 369,778,086 | 392,170,191 |
| Net cash from or (used by) financing activities | (292,199,851) | (317,234,096) | (343,040,381) | (359,893,150) | (382,216,986) |
| Net increase or (decrease) incash held | 189,189 | - | - | - | - |
| Cash at beginning of reporting period | 290,867 | 480,056 | 480,056 | 480,056 | 480,056 |
| Cash at end of reporting period | 480,056 | 480,056 | 480,056 | 480,056 | 480,056 |
Prepared on Australian Accounting Standards basis.
Table 3.2.10: Schedule of administered capital budget
The ATO does not have any administered capital.
Table 3.2.11: Schedule of asset movements — Administered
The ATO does not have any administered non-financial assets.
Notes to the financial statements
Basis of accounting
The budgeted financial statements have been prepared on an accrual basis.
Notes to the departmental statements
The departmental financial statements, included in Tables 3.2.1 to 3.2.6 have been prepared on the basis of Australian Accounting Standards and Department of Finance and Deregulation 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
Departmental statements include the estimated costs of administering the goods and services tax (GST) under 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 Australian Government for the agreed GST administration costs.
The recovery of GST administration costs are reported under the Treasury.
Notes to the administered statements
The administered financial statements at Tables 3.2.7 to 3.2.9 have been prepared on the basis of Australian Accounting Standards and Department of Finance and Deregulation guidance for the preparation of financial statements.
The standards require that taxation revenues are recognised on an accrual basis when the following conditions apply:
- the taxpayer or the taxpayer group can be identified in a reliable manner;
- the amount of tax or other statutory charge is payable by the taxpayer or taxpayer group under legislative provisions; and
- the amount of the tax or statutory charge payable by the taxpayer or taxpayer group can be reliably measured, and it is probable that the amount will be collected.
The amount of taxation revenue recognised takes account of legislative steps, discretion to be exercised and any refunds and/or credit amendments to which the taxpayers may become entitled.
Recognition of taxation revenue
Taxation revenue is recognised when the Government, through the application of legislation by the ATO and other relevant activities, gains control over the future economic benefits that flow from taxes and other statutory charges. This methodology, known as the Economic Transaction Method (ETM), relies on the estimation of probable flows of taxes from transactions which have occurred in the economy, but have not yet been reported, and are likely to be reported to the ATO through an assessment or disclosure.
However, in circumstances when there is an ‘inability to reliably measure tax revenues when the underlying transactions or events occur’, the accounting standards permit an alternative approach known as the Taxation Liability Method (TLM). Under this basis, taxation revenue is recognised at the earlier of when an assessment of a tax liability is made or payment is received by the ATO. This recognition policy means that taxation revenue is generally measured at a later time than would be the case if it were measured under the ETM method.
In accordance with the above revenue recognition approach, the ATO uses ETM as the basis for revenue recognition, except for income tax for individuals, companies and superannuation funds and superannuation surcharge which are recognised on a TLM basis.
Items recognised as reductions to taxation revenue
The following items are recognised as reductions (increases) to taxation revenue and not as an expense:
- refunds of revenue; and
- increase (decrease) in movement of provision for credit amendments.