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Australian Taxation Office

Date

Section 1: Entity overview and resources

1.1 Strategic direction statement

There has been no significant change to the strategic direction of the Australian Taxation Office (ATO) from that outlined in the Portfolio Budget Statements 2015-16 (page 191).

The ATO is seeking an additional $46.2 million in departmental funding through Appropriation Bill (No. 3) 2015-16. This relates to an additional $36.0 million for the following measures as outlined in the Mid-Year Economic and Fiscal Outlook 2015-16:

  • Enhanced Welfare Payment Integrity — non-employment income data matching ($0.7 million);
  • Reducing red tape — improvements to data and analytics infrastructure of the Australian Taxation Office ($9.5 million); and
  • Tax administration — Single Touch Payroll Reporting ($25.8 million).

This funding also includes the Growing Jobs and Small Business - streamlining business registration measure ($5.9 million) outlined in Budget Paper No. 2, Budget Measures 2015-16 and an adjustment to reflect movement of funds ($5.5 million), offset by a reduction of $1.2 million relating to the Public Sector Superannuation Accumulation Plan administration fees outlined in the Mid-Year Economic and Fiscal Outlook 2014-15.

The ATO is also seeking an additional $74.0 million as an equity injection through Appropriation Bill (No. 4) 2015-16. This relates to an additional $72.5 million for the following measures as outlined in the Mid-Year Economic and Fiscal Outlook 2015-16:

  • Higher Education Loan Programme — strengthened compliance ($1.6 million);
  • Reducing red tape — improvements to data and analytics infrastructure of the Australian Taxation Office ($11.4 million); and
  • Tax administration — Single Touch Payroll Reporting ($59.5 million).

This funding also includes the Growing Jobs and Small Business - streamlining business registration measure ($2.4 million) outlined in Budget Paper No. 2, Budget Measures 2015-16 and an adjustment to reflect the re-appropriation of $0.9 million from prior year’s appropriation before it is repealed. The funding is offset by a reduction of $1.8 million of prior year’s appropriation.

1.2 Entity resource statement

The Entity Resource Statement details the resourcing for the Australian Taxation Office at Additional Estimates. Table 1.1 outlines the total resourcing available from all sources for the 2015-16 Budget year, including variations through Appropriation Bill Nos. 3 and 4, Special Appropriations and Special Accounts.

Table 1.1: Australian Taxation Office Resource Statement — Additional Estimates for 2015-16 as at Additional Estimates February 2016
Actual available appropriation
Estimate as at Budget Proposed Additional Estimate Total estimate at Additional Estimates
  2014-15
$'000
2015-16
$'000
2015-16
$'000
2015-16
$'000
Ordinary annual services(a)      
Departmental appropriation      
Prior year departmental appropriation(b)   416,816   416,816
Departmental appropriation(c) 3,352,116 3,258,560 46,226 3,304,786
s.74 Retained Revenue Receipts(d) 118,282 133,133 (27,389) 105,744
Total 3,470,398 3,808,509 18,837 3,827,346
Administered expenses      
Outcome 1 284 611 - 611
Total 284 611 - 611
Total ordinary annual services [A] 3,470,682 3,809,120 18,837 3,827,957
Other services(e)      
Departmental non-operating      
Equity injections 23,223 68,461 74,025 142,486
Total 23,223 68,461 74,025 142,486
Total other services [B] 23,223 68,461 74,025 142,486
Total available annual appropriations 3,493,905 3,877,581 92,862 3,970,443
Special appropriations      
Special appropriations limited by criteria/entitlement      
Public Governance, Performance and Accountability Act 2013 - s.77(f) 93,088 100,000 - 100,000
Product Grants and Benefits Administration Act 2000 -      
Cleaner fuel grants 4,113 - 6,000 6,000
Product stewardship for oil 48,893 62,000 1,000 63,000
Superannuation Guarantee (Administration) Act 1992 434,987 481,000 (117,000) 364,000
Taxation Administration Act 1953 - s.16 (Non-refund items)(g) 10,100,625 10,734,404 300,924 11,035,328
Total special appropriations [C] 10,681,706 11,377,404 190,924 11,568,328
Total appropriations excluding Special Accounts 14,175,611 15,254,985 283,786 15,538,771
Special Accounts      
Opening balance 114,088 114,087 (4,289) 109,798
Appropriation Receipts 49,501 75,512 19,200 94,712
Non-appropriation receipts to Special Accounts 1,714,378 3,032,000 (408,000) 2,624,000
Total Special Account [D] 1,877,967 3,221,599 (393,089) 2,828,510
Total resourcing [A+B+C+D] 16,053,578 18,476,584 (109,303) 18,367,281
Less appropriations drawn from annual or special appropriations above and credited to special accounts (49,501) (75,512) (19,200) (94,712)
Total net resourcing for ATO 16,004,077 18,401,072 (128,503) 18,272,569

(a) Appropriation Act (No. 1) 2015-16 and Appropriation Bill (No. 3) 2015-16.

(b) Estimated adjusted balance carried from previous year for annual appropriations.

(c) Includes an amount of $115.1m in 2015-16 for the Departmental Capital Budget (refer to table 3.2.5 for further details).

(d) Estimated retained revenue receipts under s.74 of the Public Governance, Performance and Accountability (PGPA) Act 2013.

(e) Appropriation Act (No. 2) 2015-16 and Appropriation Bill (No. 4) 2015-16.

(f) Section 77 of the Public Governance, Performance and Accountability Act 2013 is used for repayments not provided for in any other appropriation. Amounts received on or before 30 June 2014 were repaid under s.28 of the Financial Management and Accountability Act 1997.

(g) These figures relate to administered expenses such as fuel tax credits, research and development tax incentives, and Australian Screen Production Incentive. Tax refunds for 2014-15 were $89.2 billion including $165.7 million made on behalf of the ATO by the Department of Immigration and Border Protection (DIBP). Estimated tax refund items for 2015-16 are $98.9 billion including $190 million made on behalf of the ATO by the DIBP.

Reader note: All figures are GST exclusive.

 

Table 1.1: Australian Taxation Office resource statement — Additional Estimates for 2015-16 as at Additional Estimates February 2016 (continued)
Third party payments from and on behalf of other entities
Estimate at Budget Estimate at Additional Estimates
  2015-16
$'000
2015-16
$'000
Payments made on behalf of other entities  
(disclosed in the respective Entity Resource Statement)  
Attorney-General's Department - -
Australian Bureau of Statistics - 500
Australian Crime Commission - 144
Australian Federal Police - 615
Australian Securities and Investments Commission - -
Australian Transaction Reports and Analysis Centre - 6
Department of Education and Training - 990
Deparment of Human Services - -
Department of the Prime Minister and Cabinet - 467
Department of the Treasury - 4,119
Total payments made on behalf of other entities - 6,841
Receipts received from other entities for the provision of services  
(disclosed above in s.74 Retained Revenue Receipts section above)  
Attorney-General's Department - -
Australian Bureau of Statistics - 500
Australian Crime Commission 6 205
Australian Federal Police 323 615
Australian Securities and Investments Commission - -
Australian Transaction Reports and Analysis Centre 424 483
Department of Education and Training - 990
Department of Finance - -
Department of Foreign Affairs and Trade 1,500 964
Deparment of Human Services 3,869 5,948
Department of Immigration and Border Protection 2 2
Department of Infrastructure and Regional Development 778 1,513
Department of Social Services 602 602
Department of the Prime Minister and Cabinet - 1,482
Department of the Treasury - 73
Inspector-General of Taxation - -
Parliament
ary Budget Office
- -
Reserve Bank of Australia 111,312 77,904
Total s.74 relevant entity receipts received for the provision of services 118,816 91,281
Payments made to other entities for the provision of services  
(disclosed above)  
Attorney-General's Department 13,959 16,251
Australian Bureau of Statistics - 2
Australian Crime Commission - 2,916
Australian Electoral Commission - 6
Australian Federal Police - 4,400
Australian Financial Security Authority 478 1,248
Australian National Audit Office - 149
Australian Postal Corporation 91,828 47,145
Australian Prudential Regulation Authority 230 -
Australian Public Service Commission 1,356 1,326
Australian Securities and Investments Commission 1,202 1,972
Australian Transaction Reports and Analysis Centre - 1,593
Comcare 4,500 4,500
Commonwealth Director of Public Prosecutions 3,500 9,658
ComSuper 4,286 4,327
CrimTrac Agency 162 257
Department of Communications 33,650 -
Department of Defence 196 325
Department of Employment and Training - -
Department of Finance 11,772 9,844
Department of Foreign Affairs and Trade - 25
Deparment of Human Services 6,482 14,518
Department of Immigration and Border Protection 55,233 55,550
Department of Industry, Innovation & Science 947 947
Department of Parliamentary Services - 7
Department of the Prime Minister and Cabinet - 33,663
Department of the Treasury - 1,066
Office of Parliamentary Counsel - 29
Total payments made to other entities for the provision of services 229,781 211,724
Payments made to corporate entities within the Portfolio  
Reserve Bank of Australia  
Departmental annual appropriation 121,527 87,937

1.3 Entity measures

Table 1.2 summarises new Government measures taken since the 2015-16 Budget. The table is split into expense and capital measures, with the affected programme identified.

Table 1.2: Entity 2015-16 measures since Budget
Programme 2015-16
$'000
2016-17
$'000
2017-18
$'000
2018-19
$'000
Expense measures      
Enhanced Welfare Payment Integrity - non-employment income data matching      
Departmental expenses 1.1 734 50 50 -
Freeze Road User Charge Collections      
Administered expenses 1.10 - 39,000 79,000 -
Higher Education Loan Programme - strengthened compliance      
Administered expenses 1.1 - - 48 96
Departmental expenses 1.1 - - 944 812
National Innovation and Science Agenda - tax incentives for angel investors      
Departmental expenses 1.1 - 1,001 1,111 1,303
Public Sector Superannuation Accumulation Plan - administration fees (a)      
Departmental expenses 1.1 (1,230) (1,230) (1,230) (1,230)
Public Sector Savings - Enterprise Resource Planning Systems (b)      
Departmental expenses 1.1 - - (1,874) (2,277)
Reducing red tape - improvements to data and analytics infrastructure of the Australian Taxation Office      
Departmental expenses 1.1 9,514 12,697 13,872 13,616
Tax administration - Single Touch Payroll Reporting      
Administered expenses 1.1 - 248 5,248 75
Departmental expenses 1.1 25,821 27,837 18,291 18,075
Tax compliance - improving compliance through third party reporting and data matching - delayed start      
Departmental expenses 1.1 - (5,304) (2,833) 8,136
Taxation treatment of biodiesel – extention of phase-in for new arrangement      
Administered expenses 1.10 - (500) (1,000) (2,000)
Total expense measures      
Administered   - 38,748 83,296 (1,829)
Departmental   34,839 35,051 28,331 38,435
Total   34,839 73,799 111,627 36,606
Capital measures      
Higher Education Loan Programme - strengthened compliance      
Departmental capital 1.1 1,637 3 - -
Reducing red tape - improvements to data and analytics infrastructure of the Australian Taxation Office      
Departmental expenses 1.1 11,385 843 - -
National Innovation and Science Agenda - tax incentives for angel investors      
Departmental capital 1.1 - 2,140 - -
Tax administration - Single Touch Payroll Reporting      
Departmental expenses 1.1 59,524 19,946 12,671 1,286
Total capital measures      
Departmental   72,546 22,932 12,671 1,286
Total 72,546 22,932 12,671 1,286

(a) This measure was announced in the Mid-Year Economic and Fiscal Outlook 2014-15 as a cross portfolio measure and has not previously appeared in a portfolio statement.

(b) This measure was announced in the Budget 2015-16 as a cross-portfolio measure and has not previously appeared in a portfolio statement.

Prepared on a Government Financial Statistics (fiscal) basis.

1.4 Additional estimates and variations

The following tables detail the changes to the resourcing for the Australian Taxation Office at Additional Estimates, by outcome. Table 1.3 details the Additional Estimates and variations resulting from new measures since the 2015-16 Budget in Appropriation Bills Nos. 3 and 4. Table 1.4 details Additional Estimates or variations through other factors, such as parameter adjustments.

Table 1.3: Additional estimates and variations to outcomes from measures since 2015-16 Budget
Programme 2015-16
$'000
2016-17
$'000
2017-18
$'000
2018-19
$'000
Outcome 1          
Increase in estimates (departmental)          
Enhanced Welfare Payment Integrity - non-employment income data 1.1 734 50 50 -
Higher Education Loan Programme - strengthened compliance 1.1 - - 944 812
National Innovation and Science Agenda - tax incentives for angel investors 1.1 - 1,001 1,111 1,303
Reducing red tape - improvements to data and analytics infrastructure of the Australian Taxation Office 1.1 9,514 12,697 13,872 13,616
Tax administration - Single Touch Payroll Reporting 1.1 25,821 27,837 18,291 18,075
Decrease in estimates (departmental)          
Public Sector Superannuation Accumulation Plan - administration fees (a) 1.1 (1,230) (1,230) (1,230) (1,230)
Public Sector Savings - Enterprise Resource Planning Systems (b) 1.1 - - (1,874) (2,277)
Net impact on estimates for Outcome 1 (Departmental)   34,839 40,355 31,164 30,299
Increase in estimates (capital)          
Higher Education Loan Programme - strengthened compliance 1.1 1,637 3 - -
National Innovation and Science Agenda - tax incentives for angel investors 1.1 - 2,140 - -
Reducing red tape - improvements to data and analytics infrastructure of the Australian Taxation Office 1.1 11,385 843 - -
Tax administration - Single Touch Payroll Reporting 1.1 59,524 19,946 12,671 1,286
Net impact on estimates for Outcome 1 (capital) 72,546 22,932 12,671 1,286

(a) This measure was announced in the Mid-Year Economic and Fiscal Outlook 2014-15 as a cross portfolio measure and has not previously appeared in a portfolio statement.

(b) This measure was announced in the Budget 2015-16 as a cross-portfolio measure and has not previously appeared in a portfolio statement.

Table 1.4: Additional estimates and variations to outcomes from other variations
Programme 2015-16
$'000
2016-17
$'000
2017-18
$'000
2018-19
$'000
Outcome 1          
Adjustment to reflect movement in indices relating to prices and wages 1.1 - - (2,912) (5,631)
Net impact on estimates for Outcome 1 (departmental)   - - (2,912) (5,631)
Increase in estimates (capital)          
Adjustment to reflect movement of funds 1.1 5,490 - - -
Adjustment to reflect the re-appropriation of prior year's appropriation before being repealed 1.1 880 - - -
Decrease in estimates (capital)          
Adjustment to reflect movement in indices relating to prices and wages 1.1 - - (113) (228)
Adjustment to reflect the reduction of prior year's appropriation 1.1 (1,800) - - -
Net impact on estimates for Outcome 1 (capital) 4,570 - (113) (228)

1.5 Breakdown of additional estimates by Appropriation Bill

The following tables detail the Additional Estimates sought for the Australian Taxation Office through Appropriation Bills Nos. 3 and 4.

Table 1.5: Appropriation Bill (No. 3) 2015-16
2014-15
Available
$'000
2015-16
Budget
$'000
2015-16
Revised
$'000
Additional Estimates
$'000
Reduced Estimates
$'000
Departmental programmes Outcome 1: Confidence in the administration of aspects ofAustralia’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. 3,352,116 3,258,560 3,304,786 46,226 -
Total departmental 3,352,116 3,258,560 3,304,786 46,226 -

2014–15 available appropriation is included to allow a comparison of this year's appropriation with what was made available for use in the previous year. Available appropriation is the amount available to be drawn down, and is equal to: Budget Appropriation + Additional Estimates Appropriation - Movement of Funds to 2015-16.

Table 1.6: Appropriation Bill (No. 4) 2015-16
2014-15
Available
$'000
2015-16
Budget
$'000
2015-16
Revised
$'000
Additional Estimates
$'000
Reduced Estimates
$'000
Non-operating      
Equity injections 23,223 68,461 142,486 74,025 -
Total non-operating 23,223 68,461 142,486 74,025 -

2014–15 available appropriation is included to allow a comparison of this year's appropriation with what was made available for use in the previous year. Available appropriation is the amount available to be drawn down, and is equal to: Budget Appropriation + Additional Estimates Appropriation.

Section 2: Revisions to outcomes and planned performance

2.1 Outcome and performance information

There has been no change to the ATO’s outcome or outcome strategy from that included in the Portfolio Budget Statements 2015-16 (page 197).

There has been no change to the programme objective, expenses, deliverables or key performance indicators for programmes 1.2 to 1.24 that affect Appropriation Bills Nos. 3 and 4.

Table 2.1: Budgeted expenses and resources for Outcome 1
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 2014-15
Actual expenses

$'000

2015-16
Revised estimated expenses
$'000
Programme 1.1: Australian Taxation Office  
Departmental expenses  
Departmental appropriation(a) 3,158,983 3,112,738
Expenses not requiring appropriation in the budget year(b) 90,972 189,240
Total for Programme 1.1 3,249,955 3,301,978
  2014-15 2015-16
Average Staffing Level (number) 18,435 18,497

(a) Departmental Appropriation combines ‘Ordinary annual services (Appropriation Act No. 1 and Bill No. 3)’ and ‘Retained Revenue Receipts under s.74 of the PGPA Act 2013’.

(b) Expenses not requiring appropriation in the Budget year is made up of depreciation expense, amortisation expense, makegood expense and audit fees.

Programme objective 1.1 Australian Taxation Office

There has been no change to the programme objective, deliverables or key performance indicat
ors included in the Portfolio Budget Statements 2015-16.

Table 2.2: Programme expenses 1.1 Australian Taxation Office
2014-15
Actual

$'000

2015-16
Revised budget
$'000
2016-17
Forward year 1
$'000
2017-18
Forward year 2
$'000
2018-19
Forward year 3
$'000
Annual departmental expenses:        
Departmental items 3,158,983 3,112,738 3,051,670 2,921,529 2,837,082
Expenses not requiring appropriation in the Budget year 90,972 189,240 190,728 192,226 193,739
Total programme expenses 3,249,955 3,301,978 3,242,398 3,113,755 3,030,821

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. The corresponding table in the Portfolio Budget Statements 2015-16 is Table 3.1.1.

Table 3.1.1: Estimates of special account flows and balances
Outcome Opening balance
$'000
Receipts

$'000

Payments

$'000

Adjustments

$'000

Closing balance
$'000
Excise Security Deposits (A)    
2015-16 1 356 - - - 356
2014-15   355 1 - - 356
Services for Other Entities and Trust Moneys Special Account (A)    
2015-16 1 2,292 10,000 10,000 - 2,292
2014-15   2,596 1,371 1,675 - 2,292
Superannuation Clearing House Special Account (A)    
2015-16 1 28,762 2,614,000 2,629,000 - 13,762
2014-15   20,005 1,708,825 1,700,068 - 28,762
Superannuation Holding Accounts Special Account (A)    
2015-16 1 72,098 79,900 13,700 - 138,298
2014-15   74,583 27,101 29,586 - 72,098
Services for Other Entities and Trust Moneys Special Account (D)    
2015-16 1 - - - - -
2014-15   - 570 570 - -
Australian Charities and Not-for-profits Commission Special Account (D)    
2015-16 1 6,290 14,812 16,686 - 4,416
2014-15   5,341 15,398 14,449 - 6,290
Valuation Services Special Account (D)    
2015-16 1 - - - - -
2014-15   11,209 10,611 21,820 - -
Total special accounts  
2015-16 Budget estimate   109,798 2,718,712 2,669,386 - 159,124
2014-15 actual 114,089 1,763,877 1,768,168 - 109,798

(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 2015-16.

The budgeted department
al comprehensive income statement also reflects changes arising from measures since Budget as outlined in Table 1.2.

Budgeted departmental balance sheet

The ATO’s assets are predominantly non-financial assets.

The ATO’s liabilities continue to be predominantly employee entitlements.

3.2.2 Budgeted financial statements

Departmental financial statements
Table 3.2.1: Comprehensive income statement (showing net cost of services) for the period ended 30 June
2014-15
Actual

$'000

2015-16
Revised budget
$'000
2016-17
Forward estimate
$'000
2017-18
Forward estimate
$'000
2018-19
Forward estimate
$'000
EXPENSES        
Employee benefits 2,024,395 1,918,089 1,902,937 1,832,094 1,795,089
Suppliers 1,209,486 1,378,856 1,324,502 1,259,506 1,210,686
Depreciation and amortisation 163,830 182,662 184,150 185,648 187,161
Finance costs 981 - - - -
Write-down and impairment of assets 2,735 - - - -
Losses from asset sales 2 - - - -
Other expenses 1,482 - - - -
Total expenses 3,402,911 3,479,607 3,411,589 3,277,248 3,192,936
LESS:        
OWN-SOURCE INCOME        
Own-source revenue        
Sale of goods and rendering of services 96,740 100,709 92,295 96,235 99,271
Other revenue 4,532 3,528 3,528 3,528 3,528
Total own-source revenue 101,272 104,237 95,823 99,763 102,799
Gains        
Sale of assets        
Other 2,053 3,050 3,050 3,050 3,050
Total gains 2,053 3,050 3,050 3,050 3,050
Total own-source income 103,325 107,287 98,873 102,813 105,849
Net cost of (contribution by) services 3,299,586 3,372,320 3,312,716 3,174,435 3,087,087
Revenue from Government 3,215,199 3,189,658 3,128,566 2,988,787 2,899,926
Surplus/(deficit) attributable to the Australian Government (84,387) (182,662) (184,150) (185,648) (187,161)
OTHER COMPREHENSIVE INCOME  
Revaluation of restoration obligations provision (490) - - - -
Changes in asset revaluation surplus 8,102 - - - -
Total other comprehensive income 7,612 - - - -
Total comprehensive income/(loss) (76,775) (182,662) (184,150) (185,648) (187,161)
Table 3.2.1: Comprehensive income statement (showing net cost of services) for the period ended 30 June (continued)
Note: Impact of net cash appropriation arrangements
2014-15
Actual

$'000

2015-16
Revised budget
$'000
2016-17
Forward estimate
$'000
2017-18
Forward estimate
$'000
2018-19
Forward estimate
$'000
Total comprehensive income/(loss) excluding depreciation/amortisation expenses previously funded through revenue appropriations 87,055 - - - -
less depreciation/amortisation expenses previously funded through revenue appropriations(a) 163,830 182,662 184,150 185,648 187,161
Total comprehensive income/(loss) - as per the Statement of Comprehensive Income (76,775) (182,662) (184,150) (185,648) (187,161)

(a) From 2010-11, the Government introduced net cash appropriation arrangements where Appropriation Act No. 1 or Bill No. 3 revenue appropriations for the depreciation/amortisation expenses of non-corporate Commonwealth entities were replaced with a separate capital budget (the Departmental Capital Budget, or DCB) provided through Appropriation Act No. 1 or Bill No. 3 equity appropriations. For information regarding DCBs, please refer to Table 3.2.5 Departmental Capital Budget Statement.

Prepared on Australian Accounting Standards basis.

Table 3.2.2: Budgeted departmental balance sheet (as at 30 June)
2014-15
Actual

$'000

2015-16
Revised budget
$'000
2016-17
Forward estimate
$'000
2017-18
Forward estimate
$'000
2018-19
Forward estimate
$'000
ASSETS        
Financial assets        
Cash and cash equivalents 46,087 46,087 46,087 46,087 46,087
Trade and other receivables 413,911 279,703 303,474 292,353 288,499
Total financial assets 459,998 325,790 349,561 338,440 334,586
Non-financial assets        
Land and buildings 215,645 229,437 238,807 263,976 290,365
Property, plant and equipment 55,195 60,423 68,154 65,810 63,389
Intangibles 472,741 525,648 479,551 413,449 325,551
Other non-financial assets 109,726 105,635 101,328 97,562 95,364
Total non-financial assets 853,307 921,143 887,840 840,797 774,669
Total assets 1,313,305 1,246,933 1,237,401 1,179,237 1,109,255
LIABILITIES        
Payables        
Suppliers 228,099 227,149 225,236 224,643 225,360
Employees 71,815 13,181 21,628 21,113 20,646
Other payables 3,158 3,158 3,132 3,124 3,134
Total payables 303,072 243,488 249,996 248,880 249,140
Interest bearing liabilities        
Leases 113,581 99,004 87,175 75,797 64,419
Total interest bearing liabilities 113,581 99,004 87,175 75,797 64,419
Provisions        
Employee provisions 659,721 593,734 615,533 621,685 627,899
Other provisions 16,535 15,359 14,427 13,391 12,243
Total provisions 676,256 609,093 629,960 635,076 640,142
Total liabilities 1,092,909 951,585 967,131 959,753 953,701
Net assets 220,396 295,348 270,270 219,484 155,554
EQUITY*        
Parent entity interest        
Contributed equity 1,086,245 1,343,859 1,502,931 1,637,793 1,761,024
Reserves 109,165 109,165 109,165 109,165 109,165
Retained surplus/(accumulated deficit) (975,014) (1,157,676) (1,341,826) (1,527,474) (1,714,635)
Total parent entity interest 220,396 295,348 270,270 219,484 155,554
Total Equity 220,396 295,348 270,270 219,484 155,554

*Equity is the residual interest in assets after the deduction of liabilities.

Prepared on Australian Accounting Standards basis.

Table 3.2.3: Departmental statement of changes in equity — summary of movement (budget year 2015-16)
Retained earnings

$'000

Asset revaluation reserve
$'000
Contributed equity/ capital
$'000
Total equity

$'000

Opening balance as at 1 July 2015        
Balance carried forward from previous period (975,014) 109,165 1,086,245 220,396
Adjusted opening balance (975,014) 109,165 1,086,245 220,396
Comprehensive income        
Other comprehensive income       -
Surplus/(deficit) for the period (182,662)     (182,662)
Total comprehensive income (182,662) - - (182,662)
of which:
Attributable to the Australian Government (182,662)     (182,662)
Transactions with owners
Contributions by owners        
Equity Injection - Appropriation     142,486 142,486
Departmental Capital Budget (DCB)     115,128 115,128
Sub-total transactions with owners - - 257,614 257,614
Estimated closing balance as at 30 June 2016 (1,157,676) 109,165 1,343,859 295,348
Closing balance attributable to the Australian Government (1,157,676) 109,165 1,343,859 295,348

Prepared on Australian Accounting Standards basis.

Total cash used
Table 3.2.4: Budgeted departmental statement of cash flows (for the period ended 30 June)
2014-15
Actual

$'000

2015-16
Revised budget
$'000
2016-17
Forward estimate
$'000
2017-18
Forward estimate
$'000
2018-19
Forward estimate
$'000
OPERATING ACTIVITIES        
Cash received        
Appropriations 3,273,566 3,324,300 3,103,342 2,997,585 2,902,219
Sale of goods and rendering of services 95,315 105,744 97,052 101,091 104,181
Interest 21 - - - -
Net GST received 115,636 121,492 120,204 113,523 108,454
Cash from the OPA 223,645 233,784 231,814 231,203 231,941
Other 6 - - - -
Total cash received 3,708,189 3,785,320 3,552,412 3,443,402 3,346,795
Cash used        
Employees 2,146,322 2,040,975 1,872,547 1,825,780 1,788,769
Suppliers 1,326,997 1,513,586 1,451,969 1,378,910 1,326,085
Cash to the OPA 232,759 233,784 231,814 231,203 231,941
3,706,078 3,788,345 3,556,330 3,435,893 3,346,795
Net cash from/(used by) operating activities 2,111 (3,025) (3,918) 7,509 -
INVESTING ACTIVITIES        
Cash received        
Proceeds from sales of property, plant and equipment 8 - - - -
Total cash received 8 - - - -
Cash used        
Purchase of property, plant and equipment 37,583 56,047 56,289 61,716 63,176
Purchase of intangibles - computer software 115,380 198,542 98,865 80,655 60,055
Total cash used 152,963 254,589 155,154 142,371 123,231
Net cash from/(used by) investing activities (152,955) (254,589) (155,154) (142,371) (123,231)
FINANCING ACTIVITIES        
Cash received        
Contributed equity 152,963 257,614 159,072 134,862 123,231
Total cash received 152,963 257,614 159,072 134,862 123,231
Cash used        
Dividends paid 510 - - - -
Total cash used 510 - - - -
Net cash used by financing activities 152,453 257,614 159,072 134,862 123,231
Net increase/(decrease) in cash held 1,609 - - - -
Cash and cash equivalents at the beginning of the reporting period 44,478 46,087 46,087 46,087 46,087
Cash and cash equivalents at the end of the reporting period 46,087 46,087 46,087 46,087 46,087

Prepared on Australian Accounting Standards basis.

Table 3.2.5: Departmental capital budget statement (for the period ended 30 June)
2014-15
Actual

$'000

2015-16
Revised budget
$'000
2016-17
Forward estimate
$'000
2017-18
Forward estimate
$'000
2018-19
Forward estimate
$'000
NEW CAPITAL APPROPRIATIONS        
Capital budget - Act No. 1 (DCB) 133,795 115,128 109,889 114,886 115,897
Equity injections - Act No. 2 26,537 142,486 49,183 19,976 7,334
Total new capital appropriations 160,332 257,614 159,072 134,862 123,231
Provided for:        
Purchase of non-financial assets 160,332 257,614 159,072 134,862 123,231
Other Items - - - - -
Total Items 160,332 257,614 159,072 134,862 123,231
PURCHASE OF NON-FINANCIAL ASSETS        
Funded by capital appropriations(a) 21,315 139,461 45,265 27,485 7,334
Funded by capital appropriation - DCB(b) 128,539 115,128 109,889 114,886 115,897
Funded internally from departmental resources(c) - - - - -
TOTAL AMOUNT SPENT 149,854 254,589 155,154 142,371 123,231
RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE        
Total purchases 149,854 254,589 155,154 142,371 123,231
TOTAL CASH REQUIRED TO ACQUIRE ASSETS 149,854 254,589 155,154 142,371 123,231

(a) Includes both current and prior Act 2 and Bills 4/6 appropriations.

(b) Does not include annual finance lease costs. Includes purchases from current and previous years’ Departmental Capital Budgets (DCBs).

(c) Includes the following sources of funding:
- current and prior year Act (No. 1) and Bills 3/5 appropriations (excluding amounts from the DCB);
- donations and contributions;
- gifts;
- internally developed assets;
- s74 Retained revenue receipts; and
- proceeds from the sale of assets.

Prepared on Australian Accounting Standards basis.

Table 3.2.6: Statement of asset movements (2015-16 Budget year) — Departmental
Buildings

$'000

Other
property,
plant and
equipment

$'000

Computer software and intangibles

$'000

Total

$'000

As at 1 July 2015        
Gross book value 217,487 91,319 1,179,695 1,488,501
Accumulated depreciation/amortisation and impairment (1,842) (36,124) (706,954) (744,920)
Opening net book balance 215,645 55,195 472,741 743,581
Capital asset additions        
Estimated expenditure on new or replacement assets        
By purchase - appropriation equity(a) 431 - 139,030 139,461
By purchase - appropriation ordinary annual services(b) 39,556 16,060 59,512 115,128
By purchase - other - - - -
Total additions 39,987 16,060 198,542 254,589
Other movements
Depreciation/amortisation expense (26,195) (10,832) (145,635) (182,662)
Total other movements (26,195) (10,832) (145,635) (182,662)
As at 30 June 2016        
Gross book value 257,474 107,379 1,378,237 1,743,090
Accumulated depreciation/amortisation and impairment (28,037) (46,956) (852,589) (927,582)
Closing net book balance 229,437 60,423 525,648 815,508

(a) ‘Appropriation equity’ refers to equity injections provided through Appropriation Act (No.2) 2015-16 and Bill (No.4) 2015-16.

(b) ‘Appropriation ordinary annual services’ refers to funding provided through Appropriation Act (No.1) 2015-16 and Bill (No.3) 2015-16 for depreciation/amortisation expenses, DCBs or other operational expenses.

Prepared on Australian Accounting Standards basis.

Schedule of administered activity

Table 3.2.7: Schedule of budgeted income and expenses administered on behalf of Government (for the period ended 30 June)
2014-15
Actual

$'000

2015-16
Revised
budget
$'000
2016-17
Forward estimate
$'000
2017-18
Forward estimate
$'000
2018-19
Forward estimate
$'000
EXPENSES ADMINISTERED ON BEHALF OF GOVERNMENT        
Suppliers 181 611 5,303 8,797 272
Subsidies 9,472,449 9,685,928 10,086,246 10,552,435 11,119,988
Personal benefits 1,164,287 1,121,400 1,097,400 384,000 393,000
Finance costs 222,537 275,000 275,000 275,000 275,000
Write-down and impairment of assets 5,330,176 6,916,408 7,118,000 7,714,000 8,419,000
Other expenses 351,693 386,000 373,000 347,000 340,000
Total expenses administered on behalf of Government 16,541,323 18,385,347 18,954,949 19,281,232 20,547,260
LESS:        
OWN-SOURCE INCOME        
Own-source revenue        
Taxation revenue        
Income tax 259,171,506 274,609,537 291,414,085 311,986,545 335,122,030
Indirect tax 81,517,012 82,553,000 86,620,000 90,850,000 95,430,000
Other taxes 915,295 982,019 1,051,155 1,070,900 1,136,200
Total taxation revenue 341,603,813 358,144,556 379,085,240 403,907,445 431,688,230
Non-taxation revenue
Other revenue 404,810 573,500 579,000 369,000 369,000
Total non-taxation revenue 404,810 573,500 579,000 369,000 369,000
Total own-source revenue administered on behalf of Government 342,008,623 358,718,056 379,664,240 404,276,445 432,057,230
 
Net cost of/(contribution by) services (325,467,300) (340,332,709) (360,709,291) (384,995,213) (411,509,970)
Surplus/(Deficit) 325,467,300 340,332,709 360,709,291 384,995,213 411,509,970

Prepared on Australian Accounting Standards basis.

Table 3.2.8: Schedule of budgeted assets and liabilities administered on behalf of Government (as at 30 June)
2014-15
Actual

$'000

2015-16
Revised budget
$'000
2016-17
Forward estimate
$'000
2017-18
Forward estimate
$'000
2018-19
Forward estimate
$'000
ASSETS        
Financial assets        
Cash and cash equivalents 314,859 314,859 314,859 314,859 314,859
Taxation receivables 17,511,796 17,746,924 18,364,009 19,201,554 20,352,584
Accrued revenues 12,711,279 13,376,279 14,071,279 14,766,279 15,581,279
Total financial assets 30,537,934 31,438,062 32,750,147 34,282,692 36,248,722
Total assets administered on behalf of Government 30,537,934 31,438,062 32,750,147 34,282,692 36,248,722
LIABILITIES        
Provisions        
Taxation refunds provided 2,251,926 2,251,926 2,251,926 2,251,926 2,251,926
Other provisions 873,274 1,076,274 1,190,274 1,046,274 934,274
Total provisions 3,125,200 3,328,200 3,442,200 3,298,200 3,186,200
Payables        
Subsidies 4,093,190 4,553,479 4,889,636 5,178,625 5,497,378
Personal benefits 1,278,974 1,258,424 1,239,874 527,274 450,574
Other payables 837,372 903,572 925,772 937,872 929,272
Total payables 6,209,536 6,715,475 7,055,282 6,643,771 6,877,224
Total liabilities administered on behalf of Government 9,334,736 10,043,675 10,497,482 9,941,971 10,063,424
Net assets/(liabilities) 21,203,198 21,394,387 22,252,665 24,340,721 26,185,298

Prepared on Australian Accounting Standards basis.

Table 3.2.9: Schedule of budgeted administered cash flows (for the period ended 30 June)
2014-15
Actual

$'000

2015-16
Revised
budget
$'000
2016-17
Forward estimate
$'000
2017-18
Forward estimate
$'000
2018-19
Forward estimate
$'000
OPERATING ACTIVITIES        
Cash received        
Taxes 336,197,246 349,940,001 370,205,000 394,175,000 420,830,000
Other 1,070,909 1,393,419 1,297,255 868,100 868,800
Total cash received 337,268,155 351,333,420 371,502,255 395,043,100 421,698,800
Cash used        
Borrowing costs 220,374 275,000 275,000 275,000 275,000
Subsidies paid 8,864,918 9,225,639 9,750,089 10,263,446 10,801,235
Personal benefits 1,205,409 1,141,950 1,115,950 1,096,600 469,700
Suppliers 409 611 5,303 8,797 272
Other 401,288 548,700 504,900 492,100 487,200
Total cash used 10,692,398 11,191,900 11,651,242 12,135,943 12,033,407
Net cash from/(used by) operating activities 326,575,757 340,141,520 359,851,013 382,907,157 409,665,393
FINANCING ACTIVITIES        
Cash received        
Cash from Official Public Account 10,692,398 11,191,900 11,651,242 12,135,943 12,033,407
Total cash received 10,692,398 11,191,900 11,651,242 12,135,943 12,033,407
Cash used        
Cash to Official Public Account 337,396,374 351,333,420 371,502,255 395,043,100 421,698,800
Total cash used 337,396,374 351,333,420 371,502,255 395,043,100 421,698,800
Net cash from/(used by) financing activities (326,703,976) (340,141,520) (359,851,013) (382,907,157) (409,665,393)
Net increase/(decrease) in cash held (128,219) - - - -
Cash and cash equivalents at beginning of reporting period 443,078 581,639 581,639 581,639 581,639
Cash and cash equivalents at end of reporting period 314,859 581,639 581,639 581,639 581,639

Prepared on Australian Accounting Standards basis.

Notes to the financial statements

Basis of accounting

The ATO’s 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 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) pursuant to 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 GST administration costs are reported in the annual GST Administration Performance Report.

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 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, superannuation funds, superannuation surcharge and the minerals resource rent tax (repealed September 2014) 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.