Achievements towards Outcome 3

Budget Output 3.1 – Tax administration and revenue collection
Budget Output 3.2 – Regulation and administration of liquor and gaming
Budget Output 3.3 – Government prices oversight and energy regulation

That statutory bodies receive high quality regulatory and revenue management services

Budget Output 3.1 – Tax administration and revenue collection

Revenue

The revenue we collect is used to fund essential services that the Tasmanian Government provides, including hospitals, schools, roads and law and order. During 2006–07 we continued to improve our systems to administer the collection of state revenue and the payment of grants and subsidies. We focus on making sure taxpayers pay the right amount of tax and receive the correct grant or subsidy and we continue to do this through education, targeted audits and prosecutions, when appropriate.

The Revenue Branch collected revenue of $622 million at a cost of $7.23 million, representing a cost of collection of 1.16 per cent of revenue.

Communication and Education

We also established a State Revenue Office–Law Society Consultative Committee to improve communication and liaison between the parties. This committee provides a mechanism to consult with the legal profession on policies and procedures adopted by the State Revenue Office.

Client education is an integral component of our compliance program, and we develop an annual education plan that is based on the identified risks to revenue.

During the year the Commissioner and her staff attended and made presentations at a number of events held by taxpayer representatives and interest groups, such as the Taxation Institute of Australia, the Tasmanian Revenue Online self-assessment sessions and the First Home Buyers seminars. We provided people with information on their taxation responsibilities through advertisements in newspapers and taxpayer representative publications, and the distribution of guidelines and rulings.

Audit results

We continued to improve our targeting and audit techniques, resulting in record audit results for the third year running. Revenue identified from audit activities resulted in $9.08 million additional revenue being identified (compared to $7.84 million in 2005–06); $1.83 million was added to the annual tax base.

Objections, reviews and appeals

We inform taxpayers of their objection and review rights through information available on our website and in correspondence issued to taxpayers. This year 115 objections were received, only 21 of which were allowed in full (a positive reflection on the quality of the thousands of decisions made by the Commissioner and her delegates each year); 92 per cent were resolved within 90 days. During the year, only six new requests for review were lodged with the Magistrates Court (Administrative Appeals Division). No matters were referred to the Supreme Court of Tasmania on appeal during the year. A total of six matters were finalised during the year with three requests withdrawn by the appellants and three decisions handed down in favour of the Commissioner.

Prosecutions

During the year five matters were referred to the Director of Public Prosecutions recommending prosecution action be taken, including three relating to applicants’ dishonestly applying for, or obtaining, a First Home Owner Grant and/or the duty concession for first-home owners. This result is due to a concerted effort by the Commissioner to deter fraudulent activity by taxpayers and grant applicants.

Next year’s aims

We will:

• Aim to keep operating expenses below 1.5 per cent of taxation revenue.
• Further refine our audit targeting by piloting data-matching techniques and systems used in other jurisdictions.
• Implement Tasmanian Revenue Online (TRO) Mandatory Self-Assessment, where TRO duty instrument lodgers will be required to lodge certain simple duty instruments via TRO.
• Improve client education through additional seminars, advertising and issuing of publications, and increase our focus on stakeholder relations by reviewing identified policies in consultation with them.
• Focus on expanding our consultative arrangements with peak bodies and other interested parties. This will assist in fostering better relationships, provide a forum for feedback, and increase our educational coverage.

Budget Output 3.2 – Regulation and administration of liquor and gaming

Control of late night trading activities

In keeping with the risk-based approach to compliance, we are continuing to review and monitor the activities of premises trading between the hours of 12 midnight to 5 am and compliance with Late Night Trading Agreements. Our resources are strategically focused on entertainment precincts and problem premises. The Commissioner for Licensing will take action to cancel late night trading permits if they are causing undue annoyance and disturbance.

Minor gaming review

We undertook a review of authorised games conducted for charitable purposes under a minor gaming permit, with a focus on risk-based compliance. Recommendations approved in principle by the Tasmanian Gaming Commission will substantially reduce the administrative effort of applicants and clients and improve customer service.

Responsible Gambling Awareness Week

During May 2007, for the first time in Tasmania, industry and the Government joined forces to promote safe gambling in gaming venues with a poster and flyer campaign. Network Gaming, Federal Hotels, the Australian Hotels Association, the Gambling Support Bureau and the Liquor and Gaming branch were all involved to promote community education about gambling. The campaign promoted prevention as well as support services available to problem gamblers.

Strategic approach to the management of major events

We are developing alliances with event organisers, Tasmania Police and local government to take a more strategic and cooperative approach to authorising the sale of liquor at major public events, such as food and wine festivals, major sporting events and music festivals. Greater control over the sale and consumption of alcohol has been achieved by creating safer and more responsible environments and promoting the principles of Responsible Service of Alcohol.

Betfair established in Tasmania

Betfair, the holder of a Tasmanian Gaming Licence, began “bet-matching” from its Hobart data centre in August 2006 – the culmination of eight months of development and planning to ensure that its Technopark operation is a world leading technical hub. To be regulated in Tasmania, Betfair has had to ensure that its systems are compliant with leading edge technical standards that include stringent player protection measures and the provision of strong anti-fraud components.

Review of Tasmanian Gaming Exclusions Scheme

A review of the Tasmanian Gaming Exclusions Scheme undertaken during 2006–07 has recommended a host of changes designed to improve the effectiveness of the scheme. The recommendations of the report have been endorsed by the Tasmanian Gaming Commission and are expected to be implemented progressively throughout 2007–08.

New surveillance standards for licensed gaming venues

From July 2006 all hotel and club gaming operators were required to maintain an electronic surveillance record of gaming activities at their premises. As part of the normal inspection process, liquor and gaming compliance inspectors are now checking that each system meets the minimum standard as approved by the Tasmanian Gaming Commission. These new standards provide further protection for both operators and gamblers.

New gaming machine monitoring system

An upgraded monitoring system for clubs and hotels was approved by the Tasmanian Gaming Commission and is being installed in all venues. The system links machines across the State and provides security and financial monitoring. With upgraded protocols, the system has greater security and flexibility and has enabled the implementation of Player Information Displays on all new games, whereby players can assess the probability of winning the major prize and access other information.

Next year’s aims

We will:

• Continue to streamline administration in keeping with the most efficient delivery of services in Hobart and Launceston locations and continue the development of the Gaming Licensing Information System.
• Complete the review and development of the Liquor and Gaming website project and work towards development of an online application process for all stakeholders.
• Develop a framework for a more consistent and professional approach to the delivery of Responsible Service of Gaming training and continue the moderation and oversight of the framework developed for the Responsible Service of Alcohol Program.
• Facilitate and implement the proposed legislative changes to the Liquor Licensing Act 1990.
• Implement the recommendations from the review of the Tasmanian Gaming Exclusions Scheme and the review of Minor Gaming.
• In conjunction with Tasmania Police continue with our risk based approach to dealing with problem licensed premises and take firm action when premises are causing undue annoyance and disturbance.
• Develop a framework for a comprehensive Liquor Harm Strategy.

Budget Output 3.3 – Government prices oversight and energy regulation

Electricity price investigation

This year we assisted the Tasmanian Energy Regulator in his investigation of the prices for electricity distribution services and retail tariffs on mainland Tasmania. A draft report was published in July 2007, with a determination to be made in October 2007, which will set maximum prices for non-contestable electricity customers from 1 January 2008 until mid-2010.

Investigation of the pricing policies of Bulk Water Authorities.

This year we helped the Government Prices Oversight Commission to undertake an investigation of the pricing policies of the Hobart Regional Water Authority, Cradle Coast Water and the Esk Water Authority in accordance with terms of reference issued by the Treasurer. In its report the Commission recommended maximum prices to be charged by each of the bulk water authorities for the next three-year regulatory period.

Interval metering review

We assisted the Tasmanian Energy Regulator in preparing a report to the Treasurer that assessed the economic implications of a roll out of interval meters to electricity customers.

Development of Distribution Network Reliability Standards

Together with officers from the Office of Energy Planning and Conservation, and Aurora Energy, we recommended to the Regulator new standards of reliability for the distribution network. These will be incorporated in the Tasmanian Electricity Code and will mean improved reliability of electricity supply in many Tasmanian regional centres.

Support to the Regulator’s Reliability and Network Planning Panel

We assisted the Regulator’s Reliability and Network Planning Panel to undertake a comprehensive assessment of the outlook for power system reliability for the next two years. The Panel’s report makes recommendations for improving power system reliability in Tasmania.

Tasmanian Energy Supply Industry Performance Report 2005–06*

We also helped the Regulator to develop and publish a comprehensive report on the performance of the energy supply industry in 2005–06. Public reporting is a powerful tool in protecting consumers from deterioration in service standards in the industry.

*The annual reports of the Government Prices Oversight Commission and the Tasmanian Energy Regulator, available at www.gpoc.tas.gov.au and www.energyregulator.tas.gov.au, provide details of the achievements of these statutory bodies in 2006–07.

Standards for pre-payment meters

With the Regulator we developed standards for the sale and supply of electricity by way of pre-payment meters. Electricity customers now enjoy the same protection afforded to standard tariff customers. This protection includes minimum terms and conditions, the provision of information to customers and complaint handling mechanisms.

Next year’s aims

We will:

• Set prices for the provision of regulated electricity distribution services for the period 1 January 2008 to 31 December 2012, and the maximum charges for retail services to non-contestable customers for the period 1 January 2008 to 30 June 2010.
• Conduct an assessment of the net public benefits of full electricity retail contestability in Tasmania.

• Report to Government on councils’ compliance with urban water pricing guidelines.
• Investigate the efficient cost of supply of electricity on the Bass Strait Islands and recommend retail tariffs.
• Assist the jurisdiction to prepare for the transfer of relevant regulatory functions to national regulatory bodies (as agreed by the Ministerial Council for Energy), and determine residual regulatory functions that will be delivered.
• Monitor the performance of the energy supply industry.