Budget Output 3.1: Tax administration and revenue collection

Revenue

In 2008–09, the Revenue Branch collected $674.0 million in State taxes, paid $49.2 million in the First Home Owner Grants and associated Boost grants, administered $5.3 million in payroll tax rebates, (IT, Apprentice Group Training Schemes, and Tasmanian Training and Apprentice Incentive Scheme) and administered $17.5 million in rates remissions. In accordance with the national benchmark, we maintained our cost of administration below 1.5 per cent of total grants administered and taxation revenue. Final Branch salary and operating expenses equalled $4.9 million, providing an efficiency ratio (not including corporate services) of operating costs to revenue administered of 0.6 per cent.

Objections, reviews and appeals

All taxpayers have the right to lodge objections and request reviews regarding decisions made by the State Revenue Office. We ensure that taxpayers are aware of these rights through direct correspondence, via the SRO website and through initiatives such as the Taxpayer Charter. In 2008–09, 77 new objections were received; 88 objections were finalised, with 25 being allowed in full. Three requests for review were lodged with the Administrative Appeals Division of the Magistrates Court and two matters were referred to the Supreme Court. 72 per cent of objections were disallowed, demonstrating the reliability and robustness of the decisions of the Commissioner of State Revenue. In many cases where an objection was fully allowed, taxpayers supplied further information at the time of objection that was not available at the time of the original decision.

Prosecutions

In referring matters for prosecution, we aim to deter fraudulent activity both in relation to taxation payments and grant and rebate applications. In line with this responsibility we recommended prosecution action be taken against seven taxpayers in 2008–09. Of these prosecutions, one was successful with a fine imposed and a conviction recorded, while six are still in progress.

Business Process and Information Technology Project

In 2008–09, we commenced a three-year project to implement the outcomes of the business process and IT systems review undertaken from 2007 to 2009. During 2008–09, this project has resulted in process and system changes to improve the quality of our addressing and business data and the automation of some manual processes to improve data matching. The project has also reviewed business intelligence needs and established new controls over grant and payment processing.

Standard Business Reporting

Standard Business Reporting is a federally funded multi-agency initiative designed to simplify business-to-government reporting. This initiative will allow businesses to submit their payroll tax returns and other business reporting requirements across Australia through a single channel using one login identification number. We have been working closely with other Government agencies on this project and we are commencing the final design and build stage of a SBR channel for payroll tax returns.

Communication and stakeholder education

The Revenue Branch finalised its inaugural Communications Strategy in 2008–09. This Strategy was communicated to all branch staff through a Communications Strategic Statement, which highlights the communication priorities of the branch. Significant progress has been made against each of these priorities, with the following communication projects commenced:

• review of public documents to re-organise and re-write the content;
• restructure of the website to make online information more accessible to our stakeholders;
• review of our correspondence templates to ensure that they tell our stakeholders what they need to know in language they understand; and
• continued liaison with stakeholders through consultative groups, surveys and regular placement of articles in peak body publications.

• The Revenue Branch will continue to progress its major projects and build its relationships with stakeholders. The BPIT Project will implement further system changes to improve data quality, including work on improved online forms. This project will continue work on a new duties system that will comply with the standards of the National Electronic Conveyancing System Project. The NECS Project is an Australia-wide joint government and industry initiative to create an efficient and convenient way of completing property based transactions and lodging land title dealings for registration. A major aim of the BPIT project is to constrain and fix data quality issues and to develop a wider taxpayer view through the replacement of legacy technology.
• The SBR project will be ongoing throughout 2009–10 with all jurisdictions currently working towards an implementation date of 1 July 2010. Tasmania is well placed to meet all obligations and milestones over the coming year, to provide a solution for submitting periodic payroll tax returns through SBR. The submission of annual payroll tax returns will also be available through SBR by the end of 2010–11.
• We will continue to build stakeholder relations by improving the accessibility and clarity of our information, expanding opportunities for direct interaction with stakeholders and improving stakeholders’ understanding of their rights and obligations. A three-year integrated approach to education and communication has been adopted. Education and communication activities cannot be readily separated and there is a need to ensure that all activities are coordinated and messages are consistent to ensure that the desired position of the State Revenue Office is reinforced. The approach is based on stakeholder groups and their information needs.
• In 2009–10, new compliance programs will be developed that address risks to revenue from a Branch-wide perspective. A compliance strategy is currently being developed to clearly articulate our future approach. This new approach is a result of the review of compliance approaches conducted in 2008–09.

• We will continue to implement the Branch communication strategy to ensure that every interaction with our clients becomes an opportunity to educate and inform.
• We will continue with the development of liquor accords across the State to encourage licensees to engage more broadly with the local community and government stakeholders on best practice in and around licensed premises.
• We will continue with the development of ebusiness strategies to increase our administrative efficiency and to benefit our clients.
• We will implement the Government’s harm minimisation and consumer protection measures to further address problem gambling in Tasmania.
• We will complete the rewrite of the Internet Gaming Technical Requirements to incorporate developments with betting exchanges, totalisators and corporate bookmakers, and to improve the Internet gaming industry’s understanding of and compliance with the requirements of the Tasmanian Gaming Commission.
• We will enhance and develop the new training framework and moderation process for the delivery of Responsible Conduct of Gaming training, to improve the understanding by gaming staff of their responsibilities to ensure a safe gaming environment in Tasmania.
• We will implement the new totalizator legislation and work with the existing and new operator after the sale to support compliance with the new regulations.

• The Branch will continue to support the Tasmanian Economic Regulator in undertaking its functions, including the completion of its investigation of the pricing policies of the Motor Accidents Insurance Board; further implementation of the new regulatory framework for the water and sewerage industry; and the determination of electricity retail prices for non-contestable customers.