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Inspector-General of Taxation

Date

Section 1: Agency overview and resources

1.1 Strategic direction statement

The objective of the Inspector‑General of Taxation (IGT) is to improve the administration of the tax laws for the benefit of all taxpayers.

The IGT's strategic direction for 2013‑14 is to achieve this by delivering independent advice for improvement through:

  • consulting with the community to ensure tax administration issues are identified;
  • conducting reviews into the identified issues;
  • developing a deeper understanding of the issues and advise on improvement options; and
  • reporting publicly on review outcomes, observations and improvement recommendations.

In 2013‑14, the IGT will establish a new work program through a broad‑based community consultation process which remains in effect for that year.

1.2 Agency resource statement

Table 1.1 shows the total resources for IGT.

Table 1.1: Inspector‑General of Taxation resource statement — Budget estimates for 2013‑14 as at Budget May 2013
Estimate
of prior
year amounts
available in
2013‑14
$'000
+ Proposed
at Budget
2013‑14
$'000
= Total
estimate
2013‑14
$'000
Actual
available
appropriation
2012‑13
$'000
Ordinary annual services            
Departmental appropriation            
Prior year departmental appropriation 2,940 3 -   2,940 -
Departmental appropriation2 -   2,656 1 2,656 2,652
Total net resourcing for the IGT 2,940   2,656   5,596 2,652

1. Appropriation Bill (No. 1) 2013‑14.

2. Includes $0.03 million in 2013‑14 for the departmental capital budget (also refer to Table 3.2.5).

3. Estimated adjusted balance carried from previous year for annual appropriations.

1.3 Budget measures

Budget measures relating to the IGT are summarised below.

Table 1.2: Inspector‑General of Taxation 2013‑14 Budget measures

Table 1.2: Australian Bureau of Statistics 2013‑14 Budget measures
Program 2012‑13
$'000
2013‑14
$'000
2014‑15
$'000
2015‑16
$'000
2016‑17
$'000
Expense measures            
Targeted savings — public service efficiencies1 1.1 (12) (18) (15) (14) (13)
Total expense measures   (12) (18) (15) (14) (13)

1. This measure was included as a cross portfolio measure in the Mid‑Year Economic and Fiscal Outlook 2012‑13.

Prepared on a Government Finance Statistics (fiscal) basis.

Section 2: Outcomes and planned performance

2.1 Outcomes and performance information

Government outcomes are the intended results, impacts or consequences of actions by the Government on the Australian community. Commonwealth programs are the primary vehicle by which government agencies achieve the intended results of their outcome statements. Agencies are required to identify the programs which contribute to Government outcomes over the Budget and forward years.

The IGT's outcome is described below, specifying the strategy, program objective, program deliverables and program key performance indicators used to assess and monitor the performance of the IGT.

Outcome 1: Improved tax administration through community consultation, review, and independent advice to Government

Outcome 1 strategy

Key strategies to achieve Outcome 1 are to:

  • undertake community consultation, research and other processes to identify and prioritise areas of tax administration for improvement;
  • call for submissions to review and to stimulate input by, for example, issuing terms of reference and similar materials;
  • review identified areas and provide independent advice and recommendations to the Government and the Australian Taxation Office (ATO) on improvements to the administration of the tax laws;
  • maintain a positive public profile for the IGT through participation in conferences and seminars;
  • build on approaches that increase the ATO's involvement and contribution to review processes and outcomes; and
  • selectively engage external expertise and undertake overseas comparisons to enhance capabilities and objectivity for appropriate reviews.

The major projects and activities expected to be commenced and/or completed during 2013‑14 include the development of a new IGT work program of reviews through broad‑based consultation with stakeholders and to commence and/or complete these reviews in that year. In addition, consideration of the ATO's implementation of IGT recommendations is also supported.

Outcome expense statement

Table 2.1 provides an overview of the total expenses for Outcome 1.

Table 2.1: Budgeted Expenses for Outcome 1
Outcome 1: Improved tax administration through community consultation, review, and independent advice to government 2012‑13
Estimated
actual
expenses
$'000
2013 ‑14
Estimated
expenses
$'000
Program 1.1: Inspector-General of Taxation    
Departmental expenses    
Departmental appropriation 2,622 2,626
Expenses not requiring appropriation in the budget year 38 30
Total expenses for Outcome 1 2,660 2,656
     
  2012‑13 2013‑14
Average staffing level (number) 10 10

Contributions to Outcome 1

Program 1.1: Inspector‑General of Taxation
Program objective

The IGT has the following objectives:

  • identify areas of tax administration where community stakeholders believe improvements should be made or issues reviewed;
  • consult with government agencies that review tax administration, in particular the Australian National Audit Office and the Commonwealth Ombudsman to foster cooperation and make efficient use of resources;
  • prioritise areas of tax administration for review according to the IGT's work program and ministerial direction as appropriate;
  • provide independent advice to the Government and the ATO on tax administration and make recommendations on improvements; and
  • consideration of the ATO's implementation of IGT recommendations.
Program expenses

There are no significant changes to estimates across the forward years.

Table 2.2: Program expenses
2012‑13
Revised
budget
$'000
2013‑14
Budget
$'000
2014‑15
Forward
year 1
$'000
2015‑16
Forward
year 2
$'000
2016‑17
Forward
year 3
$'000
Annual departmental expenses:          
Departmental items 2,660 2,656 2,669 2,694 2,721
Total program expenses 2,660 2,656 2,669 2,694 2,721
Program deliverables

The IGT has the following deliverables:

  • a program of reviews based on community input and consultation with other relevant agencies, and prioritised in line with principles of good tax administration; and
  • five completed reviews incorporating independent advice to the Government on systemic issues and/or viable improvements to tax administration.
Program key performance indicators

The IGT has the following key performance indicators:

  • positive feedback and continued support from community stakeholders including taxpayers, tax practitioners and relevant government agencies; and
  • recommendations for systemic improvements in tax administration agreed and implemented by the ATO and/or the Government.

Section 3: Explanatory tables and budgeted financial statements

Section 3 presents explanatory tables and budgeted financial statements which provide a comprehensive snapshot of agency finances for the budget year 2013‑14. It explains how budget plans are incorporated into the financial statements and provides further details of the reconciliation between appropriations and program expenses.

3.1 Explanatory tables

3.1.1 Movement of administered funds between years

The IGT has no administered funds.

3.1.2 Special accounts

The IGT has no special accounts.

3.1.3 Australian Government Indigenous Expenditure

The IGT has no Australian Government Indigenous Expenditure.

3.2 Budgeted financial statements

3.2.1 Differences in agency resourcing and financial statements

There are no material differences between agency resourcing and financial statements.

3.2.2 Analysis of budgeted financial statements

The financial statements have been prepared on an Australian Accounting Standards basis.

The IGT is budgeting for a break‑even operating result in 2013‑14 after adding back non‑appropriated depreciation and amortisation expenses.

3.2.3 Budgeted financial statements tables

Total Comprehensive Income (loss) less depreciation/amortisation expenses previously funded through revenue appropriations
Table 3.2.1: Comprehensive income statement (Showing Net Cost of Services)
(for the period ended 30 June)
Estimated
actual
2012‑13
$'000
Budget
estimate
2013‑14
$'000
Forward
estimate
2014‑15
$'000
Forward
estimate
2015‑16
$'000
Forward
estimate
2016‑17
$'000
EXPENSES          
Employee benefits 1,784 1,792 1,798 1,820 1,901
Supplier 838 834 841 844 790
Depreciation and amortisation 38 30 30 30 30
Total expenses 2,660 2,656 2,669 2,694 2,721
LESS:          
OWN-SOURCE INCOME          
Revenue          
Other revenue - - - - -
Total revenue - - - - -
Total own-source income - - - - -
Net cost of (contribution by) services 2,660 2,656 2,669 2,694 2,721
Appropriation revenue 2,622 2,626 2,639 2,664 2,691
Surplus (deficit) attributable to the Australian Government (38) (30) (30) (30) (30)
Note: Impact of Net Cash Appropriation Arrangements 
  2012-13
$'000
2013-14
$'000
2014-15
$'000
2015-16
$'000
20116-17
$'000
- - - - -
plus depreciation/amortisation expenses previously funded through revenue appropriations (38) (30) (30) (30) (30)
Total Comprehensive Income (loss) - as per the Statement of Comprehensive Income (38) (30) (30) (30) (30)

Prepared on Australian Accounting Standards basis.

Table 3.2.2: Budgeted departmental balance sheet
(as at 30 June)
Estimated
actual
2012‑13
$'000
Budget
estimate
2013‑14
$'000
Forward
estimate
2014‑15
$'000
Forward
estimate
2015‑16
$'000
Forward
estimate
2016‑17
$'000
ASSETS          
Financial assets          
Cash and equivalents 37 37 37 37 37
Trade and other receivables 2,940 2,940 2,940 2,940 2,940
Total financial assets 2,977 2,977 2,977 2,977 2,977
Non-financial assets          
Infrastructure, plant and equipment 126 126 126 126 126
Other - - - - -
Total non-financial assets 126 126 126 126 126
Total assets 3,103 3,103 3,103 3,103 3,103
LIABILITIES          
Provisions          
Employees 246 246 246 246 246
Other 94 94 94 94 94
Total provisions 340 340 340 340 340
Payables          
Suppliers 77 77 77 77 77
Total payables 77 77 77 77 77
Total liabilities 417 417 417 417 417
Net assets 2,686 2,686 2,686 2,686 2,686
EQUITY          
Reserves 370 370 370 370 370
Contributed equity 30 60 90 120 150
Retained surpluses or accumulated deficits 2,286 2,256 2,226 2,196 2,166
Total equity 2,686 2,686 2,686 2,686 2,686
Current assets 2,977 2,977 2,977 2,977 2,977
Non-current assets 126 126 126 126 126
Current liabilities 179 179 179 179 179
Non-current liabilities 238 238 238 238 238

Prepared on Australian Accounting Standards basis.

Table 3.2.3: Budgeted departmental statement of cash flows
(for the period ended 30 June)
Estimated
actual
2012‑13
$'000
Budget
estimate
2013‑14
$'000
Forward
estimate
2014‑15
$'000
Forward
estimate
2015‑16
$'000
Forward
estimate
2016‑17
$'000
OPERATING ACTIVITIES          
Cash received          
Appropriations 2,622 2,626 2,639 2,664 2,691
Other - - - - -
Total cash received 2,622 2,626 2,639 2,664 2,691
Cash used          
Employees 1,784 1,792 1,798 1,820 1,901
Suppliers 838 834 841 844 790
Total cash used 2,622 2,626 2,639 2,664 2,691
Net cash from or (used by) operating activities - - - - -
INVESTING ACTIVITIES          
Cash used          
Purchase of property, plant and equipment - 30 30 30 30
Total cash used - 30 30 30 30
Net cash from or (used by) investing activities - (30) (30) (30) (30)
FINANCING ACTIVITIES          
Cash received          
Capital injections - 30 30 30 30
Total cash received - 30 30 30 30
Net cash from or (used by) financing activities - 30 30 30 30
Net increase or (decrease) in cash held - - - - -
Cash at the beginning of the reporting period 37 37 37 37 37
Cash at the end of the reporting period 37 37 37 37 37

Prepared on Australian Accounting Standards basis.

Table 3.2.4: Departmental statement of changes in equity — summary of movement
(Budget year 2013‑14)
Retained
surpluses
$'000
Asset
revaluation
reserve
$'000
Other
reserves
$'000
Contributed
equity/
capital
$'000
Total
equity
$'000
Opening balance as at 1 July 2013          
Balance carried forward from previous period 2,286 294 76 30 2,686
Adjusted opening balance 2,286 294 76 30 2,686
Comprehensive income          
Surplus (deficit) for the period (30) - - - (30)
Total comprehensive income recognised directly in equity (30) - - - (30)
Transactions with owners          
Contributions by owners Appropriation (departmental capital budget) - - - 30 30
Total transactions with owners - - - 30 30
Estimated closing balance as at 30 June 2014 2,256 294 76 60 2,686

Prepared on Australian Accounting Standards basis.

Table 3.2.5: Departmental capital budget (DCB) statement
Estimated
actual
2012‑13
$'000
Budget
estimate
2013‑14
$'000
Forward
estimate
2014‑15
$'000
Forward
estimate
2015‑16
$'000
Forward
estimate
2016‑17
$'000
NEW CAPITAL APPROPRIATIONS          
Capital budget - Bill 1 - DCB 30 30 30 30 30
Total new capital appropriations 30 30 30 30 30
Provided for:          
Purchase of non-financial assets 30 30 30 30 30
Total Items 30 30 30 30 30
PURCHASE OF NON-FINANCIAL ASSETS          
Funded internally by departmental resources - - - - -
Funded by capital appropriation - DCB 30 30 30 30 30
TOTAL 30 30 30 30 30
RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE          
Total purchases 30 30 30 30 30
Total cash used to acquire assets 30 30 30 30 30

Prepared on Australian Accounting Standards basis.

Table 3.2.6: Statement of asset movements — departmental
Buildings
$'000
Other
infrastructure,
plant and
equipment
$'000
Intangibles
$'000
Total
$'000
As at 1 July 2013        
Gross book value - 240 - 240
Accumulated depreciation/amortisation and impairment - 114 - 114
Opening net book balance - 126 - 126
Capital asset additions        
By purchase - appropriation ordinary annual services - 30 - 30
Total additions - 30 - 30
Other movements        
Depreciation/amortisation expense - 30 - 30
Total other movements - 30 - 30
As at 30 June 2014        
Gross book value - 270 - 270
Accumulated depreciation/amortisation and impairment - 144 - 144
Closing net book balance - 126 - 126

Prepared on Australian Accounting Standards basis.