Administered programs 1.5 to 1.18
In this section
Performance results overview (expenditure by program)
Performance results – programs 1.5 to 1.13 and 1.15 to 1.18
Results analysis - programs 1.5 to 1.13 and 1.15 to 1.18
Performance results – program 1.14
Results analysis - program 1.14
Purpose
The ATO contributes to the economic and social wellbeing of Australians through governing a range of programs that result in transfers and benefits back to the community.
Performance results overview
All deliverables are achieved through making payments to eligible recipients in accordance with relevant laws.
We paid $11.7 billion in administered payments in 2018–19, $335 million (or 2.9%) higher than 2017–18 and $50 million (or 0.4%) less than forecast in the 2018–19 Budget. The largest expense was fuel tax credits with payments of $7.2 billion. This was $272 million (or 3.9%) above the 2018–19 Budget forecast.
Payments |
2016–17 |
2017–18 |
2018–19 |
---|---|---|---|
Energy/fuel schemes payments |
|||
- Fuel tax credits |
6,238 |
6,814 |
7,179 |
- Product stewardship for oil program |
72 |
75 |
73 |
- Cleaner fuels grants scheme |
1 |
0 |
0 |
- Exploration Development Incentive(b) |
19 |
4 |
0 |
- Junior Minerals Exploration Incentive |
0 |
0 |
0 |
Total energy/fuel scheme payments |
6,330 |
6,892 |
7,252 |
Other administered payments |
|||
- Education tax refund |
1 |
0 |
0 |
- Private health insurance rebate |
249 |
249 |
240 |
- National rental affordability |
166 |
188 |
170 |
- Superannuation co-contribution scheme |
148 |
126 |
126 |
- Research and development tax offset (c) |
2,546 |
2,463 |
2,311 |
- Australian Screen Production Incentive(d) |
280 |
282 |
328 |
- Low income superannuation tax offset(e) |
793 |
779 |
743 |
- Interest payments on lost superannuation accounts |
14 |
15 |
28 |
- Seafarer tax offset |
12 |
9 |
10 |
Total other administered payments |
10,540 |
11,003 |
11,208 |
Distribution of super guarantee charge entitlements |
281 |
402 |
532 |
TOTAL(f) |
10,822 |
11,405 |
11,740 |
NOTES
(a) Totals may differ from the sum of components due to rounding.
(b) The 2017–18 exploration development incentive amount of $4 million is an estimate, due to difficulties associated with tracing payments to the ultimate beneficiary. There were very small residual amounts for 2018–19.
(c) Only refundable research and development tax offsets are administered payments.
(d) The 2017–18 Australian Screen Production Incentive of $282 million is an estimate due to difficulties with data matching. The 2018–19 amount is materially accurate.
(e) Low income superannuation tax offset replaced the low income super contribution from 1 July 2017.
(f) The 2018–19 total excludes $91 million of interest on overpayments of tax.
Performance results – programs 1.5 to 1.13 and 1.15 to 1.18
The way the ATO measures the performance of administered programs and the achievement of their purpose is set out on pages 202–212 of the Australian Taxation Office Budget Statements (in the Treasury PBS), and pages 25–26 of the ATO corporate plan 2018–19.
Performance criterion |
Source |
2016–17 Results |
2017–18 Results |
2018–19 Results |
2018–19 Target |
---|---|---|---|---|---|
1.5 Australian Screen Production Incentive – Value of tax offsets processed |
PBS 202 |
$279.7m |
$281.8m |
$328.0m |
Administer the program in accordance with the law |
1.6 Junior Minerals Exploration Incentive – All applications received are processed and taxpayers notified of their exploration credit allocation within 28 calendar days of the application period closing |
PBS 203 |
X |
X |
Target met |
Within 28 calendar days of the application period closing |
1.6 Junior Minerals Exploration Incentive – Public reporting data uploaded on data.gov.au (and linked to the ato.gov.au website) after determination letters are issued |
PBS 203 |
X |
X |
Target met |
Within 56 calendar days of the application period closing |
1.7 Fuel Tax Credits Scheme – Value of claims |
PBS 203 |
$6.2b |
$6.8b |
$7.2b |
Administer the program in accordance with the law |
1.8 National Rental Affordability Scheme – Value of tax offsets processed |
PBS 204 |
$166.2m |
$188.2m |
$170.3m |
Administer the program in accordance with the law |
1.9 Product Stewardship for Oil Program – Value of revenue collected |
PBS 204 |
$33.9m |
$33.6m |
$30.9m |
Administer the program in accordance with the law |
1.9 Product Stewardship for Oil Program – Value of payments processed |
PBS 204 |
$71.9m |
$74.9m |
$72.7m |
Administer the program in accordance with the law |
1.10 Research and Development Tax Incentive – Value of claims processed for 38.5%(a) non‑refundable research & development tax offset claimants |
PBS 205 |
$3.6b tax offset paid (based on 40% non-refundable research and development tax offset claimants) |
$2.9b tax offset paid |
$2.7b tax offset paid |
Administer the program in accordance with the law |
1.10 Research and Development Tax Incentive – Value of claims processed for 43.5%(b) refundable research & development tax offset claimants |
PBS 205 |
$2.5b tax offset paid (based on 45% refundable research and development tax offset claimants) |
$2.5b tax offset paid |
$2.3b tax offset paid |
Administer the program in accordance with the law |
1.10 Research and Development Tax Incentive – Number of claims processed for 38.5% non-refundable research & development tax offset claimants |
PBS 205 |
1,812 (based on 40% non-refundable research and development tax offset claimants) |
1,754 |
1,600 |
Administer the program in accordance with the law |
1.10 Research and Development Tax Incentive – Number of claims processed for 43.5% refundable research & development tax offset claimants |
PBS 206 |
11,262 (based on 45% refundable research and development tax offset claimants) |
11,402 |
10,819 |
Administer the program in accordance with the law |
1.10 Research and Development Tax Incentive – Proportion of offsets processed within service standard timeframes |
PBS 206 |
42.4% |
76% |
89.7% |
Administer the program in accordance with the law |
1.11 Low Income Superannuation Tax Offset – Value of entitlements paid |
PBS 207 |
$793.5m |
$779.3m |
$743.4m |
Administer the program in accordance with the law |
1.12 Private Health Insurance Rebate – Value of rebates processed |
PBS 207 |
$249.2m |
$248.8m |
$239.7m |
Administer the program in accordance with the law |
1.13 Superannuation Co-contribution Scheme – Value of entitlements paid |
PBS 208 |
$147.8m |
$125.8m |
$125.9m |
Administer the program in accordance with the law |
See the following table for Program 1.14 – Superannuation Guarantee Scheme |
|||||
1.15 Targeted Assistance through the Taxation System – Value of interest payments processed |
PBS 211 |
$14.2m |
$14.9m |
$27.7m |
Administer the program in accordance with the law |
1.16: Interest on Overpayments and Early Payments of Tax – Value of credit interest applied to client accounts due to processing performance |
PBS 211 |
$29.8m |
$13.0m |
$9.4m |
Administer the program in accordance with the law |
1.17 Bad and Doubtful Debts – Provision for bad and doubtful debts as a proportion of total tax receivables |
PBS 212 |
36% |
35% |
34% |
Below 35% |
1.18 Seafarer Tax Offset – All eligible taxpayers are aware of how to claim the offset |
PBS 212 |
100% |
100% |
100% |
100% |
NOTES
(a) For 2016–17 the research and development tax offset percentage was 40%. It was changed to 38.5% in 2017–18.
(b) For 2016–17 the research and development tax offset percentage was 45%. It was changed to 43.5% in 2017–18.
Results analysis - programs 1.5 to 1.13 and 1.15 to 1.18
We use our systems, processes and controls to establish and maintain confidence that the correct level of payments and transfers delivered through the tax and superannuation systems are paid to eligible recipients in accordance with relevant laws, thus meeting our performance target for many of our administered program measures.
In many instances, small annual fluctuations in the value of benefits arise due to minor changes in economic conditions or the circumstances of our clients. However, there are some programs where a more substantial change in the value of benefits was observed in 2018–19. There is considerable interest in the Superannuation Guarantee scheme and changes in the number and value of liabilities raised by the ATO. Further discussion of these cases is provided below.
Administered program 1.15: Targeted Assistance through the Taxation System
The significant increase in the value of interest paid in the 2018–19 financial year can be attributed to:
- The reuniting campaigns that were conducted during the 2018–19 year including the proactive payments of unclaimed super money for those over 65 years old and amounts below $200.
- The improvement resulting from the MAAS and MATS implementation. As we are now receiving near real time information on the clients, this enables prompter matching of information. As a result of us being able to match our client data better and faster, we have paid out interest retrospectively in that year on the unclaimed super monies accounts that we have held for a number of years.
- The client awareness campaigns that we have run resulting in more clients joining myGov and consolidating their accounts.
Performance results – program 1.14
.
Performance criterion |
Source |
2016–17 Results |
2017–18 Results |
2018–19 Results |
2018–19 Target |
---|---|---|---|---|---|
Number of superannuation guarantee complaints leading to: |
PBS 209 |
||||
- a superannuation liability being raised |
5,598 |
13,441 |
10,917 |
Administer the program in accordance with the law |
|
- no result |
7,060 |
5,472 |
3,804 |
||
Number of employees who have had superannuation guarantee entitlements raised as a result of: |
PBS 209 |
||||
- ATO compliance activities |
69,705 |
237,945 |
173,876 |
Administer the program in accordance with the law |
|
- voluntary disclosures |
77,344 |
77,785 |
105,463 |
||
Number of: |
PBS 209 |
||||
- employers whose records are checked |
16,874 |
24,106 |
22,236 |
Administer the program in accordance with the law |
|
- checks leading to a superannuation liability being raised |
7,700 |
16,416 |
15,965 |
||
Proportion of employers for whom superannuation guarantee liabilities were raised by the ATO |
PBS 209 |
0.9% |
1.8% |
1.7% |
Administer the program in accordance with the law |
Value of superannuation guarantee charge: |
PBS 209 |
||||
- raised (including penalties and interest) |
$603.5m |
$1,107.2m |
$1,069.2m |
$841m |
|
- collected |
$282.9m |
$440.9m |
$576.6m |
$311m |
|
Value of superannuation guarantee entitlements distributed to individuals or superannuation funds |
PBS 210 |
$281.1m |
$401.6m |
$532.3m |
$285m |
Value of superannuation guarantee debt: |
PBS 210 |
||||
- on hand |
$1.5b |
$1.9b |
$2.2b |
$3.4b |
|
- irrecoverable at law or uneconomical to pursue |
$167.0m |
$238.8m |
$191.7m |
$178m |
Results analysis - program 1.14
Administered program 1.14: Superannuation Guarantee Scheme
Positive trends observed in 2017–18 with regard to superannuation guarantee funds collected and distributed to individuals and super funds continued in 2018–19, driven by a higher collection rate of compliance-related debt.
There was a decrease in case numbers across most of the superannuation guarantee measures. However the number of employees with entitlements raised as a result of voluntary disclosures increased substantially compared to 2017–18.
Visit
https://www.transparency.gov.au/annual-reports/australian-taxation-office/reporting-year/2018-2019-16