13: Administered - Expenses
|
2019 |
2018 |
||
|---|---|---|---|
|
$'m |
$'m |
||
|
Note 13A: Subsidies |
|||
|
Subsidies in connection with |
|||
|
Fuel tax credits scheme |
7,247 |
6,908 |
|
|
Research and development tax incentive |
2,002 |
2,093 |
|
|
Australian screen production incentive |
358 |
292 |
|
|
Product stewardship for oil |
71 |
74 |
|
|
Seafarer tax offset |
9 |
10 |
|
|
National rental affordability scheme |
120 |
189 |
|
|
Junior minerals exploration incentive |
9 |
9 |
|
|
Exploration development incentive |
(1) |
(25) |
|
|
Total subsidies |
9,815 |
9,550 |
|
2019 |
2018 |
||
|---|---|---|---|
|
$'m |
$'m |
||
|
Direct |
|||
|
Superannuation co-contribution scheme |
114 |
109 |
|
|
Private health insurance rebate |
229 |
266 |
|
|
Low income superannuation tax offset |
692 |
772 |
|
|
Total personal benefits |
1,035 |
1,147 |
Accounting Policy
Administered expenses include subsidies, personal benefits, impairment on taxation receivables, penalty and interest charge remission expenses, interest on overpayments, superannuation guarantee charge and unclaimed superannuation monies interest.
Subsidies, personal benefits and superannuation guarantee charge expenses are recognised when they can be reliably measured. This recognition point relies on estimation methodologies and techniques to determine taxpayer liabilities that the ATO is not aware of. Estimation techniques have inherent risks of error and rely on assumptions such as wage growth, gross domestic product (GDP) and recent historical information. At the reporting date, the amounts disclosed represent a reliable estimate of expenses incurred in the period.
For the research and development (R&D) tax incentive estimate, a change was made to the methodology. This is due to a continuing decline in later year lodgment trends with 2017-18 income year returns processed in 2018-19 showing a decline in aggregate claims.
Under the previous methodology, the later year lodgments were based on forecast growth in nominal GDP due to the expected stabilisation and maturity of the scheme with long-term growth consistent with nominal GDP. The new methodology now uses a growth rate factor for the current year based on the average growth in cash claims for the latest three years (limited to 12 months processing) instead of nominal GDP.
The effect of this change in accounting estimate as at 30 June 2019 is a reduction to the R&D subsidies expense and subsidies provision of around $123 million.
The expense recognition point for each material subsidy and personal benefit expense is noted in the table below.
The impairment on taxation receivables and penalty and interest charge remission expenses include both actual and accrued amounts in accordance with ATO operational policies. See Note 15.
Interest on overpayments represents estimates and actual payments of interest in accordance with the Taxation (Interest on Overpayments and Early Payments) Act 1983, and, an estimate of future interest charges, where the ATO considers that the probable outcome of tax in dispute at year-end will result in a refund being issued to the taxpayer.
|
Administered Expense Product |
Expense recognition point |
|---|---|
|
Fuel tax credits scheme |
Fuel tax credits scheme expense is a subsidy for the fuel tax component of the price of fuel. The expense includes an estimate of claims not yet received relating to transactions that occurred in the reporting period. |
|
Research and development tax incentive |
Research and development (R&D) tax incentive expense is a subsidy for eligible companies incurring research and development expenditure during the reporting period. Companies claim the R&D tax incentive in their tax return as refundable tax offsets which are generally paid in the subsequent reporting periods. |
|
Australian screen production incentive |
Australian screen production incentive expense is recognised when film and television production companies receive certificates of eligibility from either Screen Australia or the Ministry for the Arts on qualifying Australian production expenditure during the reporting period. |
|
Product stewardship for oil |
Product stewardship for oil (PSO) expense is recognised when a registered client recycles used oil or consumes eligible oil. Claims for PSO are lodged at any time within three years after the start of the claim period. |
|
National rental affordability scheme (ATO expense only) |
National rental affordability scheme expense is recognised when participants are eligible to receive incentives from the Secretary of the Department of Social Services (DSS) for the reporting period. Claims paid through the tax system are made on income tax returns. |
|
Junior minerals exploration incentive |
Junior minerals exploration incentive expense (JMEI) is recognised when shareholders of mineral exploration companies are provided exploration credits, which is paid as a refundable tax offset. |
|
Exploration development incentive |
Exploration development incentive (EDI) expense is recognised when shareholders of mineral exploration companies are provided exploration credits, which is paid as a refundable tax offset. EDI expense was replaced by JMEI in the 2017-18 year. The expense is still recognised for amounts processed in the comparative reporting period. |
|
Superannuation |
Superannuation co-contribution expense is recognised when individuals make eligible personal superannuation contributions during the reporting period. |
|
Private health insurance rebate (ATO expense only) |
Private health insurance rebate expense is recognised when eligible claimants have paid private health insurance premiums during the reporting period and receive a rebate through the tax system on assessment of their individual tax return. |
|
Low income superannuation tax offset |
Low income superannuation tax offset expense is recognised when eligible concessional superannuation contributions are made to superannuation fund accounts of eligible individuals during the reporting period. |
Visit
https://www.transparency.gov.au/annual-reports/australian-taxation-office/reporting-year/2018-2019-47