Tax administration and revenue collection

(Budget Output 3.1)

Revenue

In 2007–08 the Revenue Branch collected $685.37 million in State revenue at a cost of $7.44 million, or 1.08 per cent of revenue collected. This easily meets the stated target of keeping operating expenses at or below 1.5 per cent of taxation revenue for this period.

Business process and IT review

This year we undertook a substantial review of our business processes and supporting information technology systems. The review made a number of recommendations based on the input of experienced and knowledgeable staff. As a result of this review we put forward a project to re-engineer our processes and systems to enable increased efficiency and improved service provision. This project has now been funded and will commence in 2008–09.

Standard Business Reporting

The Revenue Branch has played a significant role in a multi-agency initiative designed to simplify business-to-government reporting. This initiative, known as Standard Business Reporting, will allow businesses to connect to one central point to meet their payroll tax reporting requirements. We have been working closely with other Government agencies on this project and we are leading the way in document development, with our set of Business Architecture forms being circulated as the template for use by all other states.

Payroll tax harmonisation

Australia's states and territories have agreed to adopt a new approach to payroll tax which will streamline administrative processes for businesses operating in more than one jurisdiction. The new approach includes accepting common provisions and definitions on such issues as time of lodgement, motor vehicle allowances, accommodation allowances and employee share acquisition schemes. The revenue offices of Tasmania, New South Wales, Victoria and Queensland have taken harmonisation even further. These four states are adopting common definitions of wages, exemptions, grouping, contractors and employment agents. During 2007–08 we participated in a range of collaborative activities with interstate revenue offices. We have implemented the necessary procedural changes and undertaken a substantial education campaign to ensure the smooth implementation of this major reform on 1 July 2008.

Client education and stakeholder liaison

A major aim for the 2007–08 year was to increase our focus on stakeholder relations. An important development in this area was the production of the first Taxpayer Charter in May 2008. The charter outlines the service standards that taxpayers can expect from the Revenue Branch and informs taxpayers of their rights, responsibilities and obligations. Copies of the charter were sent to all professional clients (accountants, lawyers and peak professional bodies) and emailed to all payroll tax registrants. It is available for download from our website.