1. GST administration

Key performance indicators

Table 1.1 GST gap (%)

Type of measure	2019–20	2020–21	2021–22	2022–23	2023–24
Net gap	6.3	4.3	5.5	9.0	–
Gross gap	9.5	8.5	13.6	12.6	–

Note: Results are not available for the given year.

Table 1.2 Voluntary compliance ratio (%)

Type of measure	2019–20	2020–21	2021–22	2022–23	2023–24
By number of taxpayers (strict)	49	46	48	47	–
By number of taxpayers (relaxed)	78	75	81	77	–
By value of GST	84	85	83	82	–

Note: Results are not available for the given year.

Table 1.3 Ratio of collectable debt to GST revenue (%)

Type of collection	2019–20	2020–21	2021–22	2022–23	2023–24
Debt collection rate (accrual method)	11.8	12.1	13.6	15.0	14.9
Debt collection rate (cash method)	13.1	12.0	14.1	15.8	15.6

Table 1.4 Strike rate of audit activities (%)

Measure	2019–20	2020–21	2021–22	2022–23	2023–24
Small business	n/a	87	95	83	73
Privately owned and wealthy groups	n/a	66	62	56	53
Public and multinational businesses	n/a	75	53	56	55
Not-for-profit	n/a	81	35	47	54
Other	n/a	85	92	92	88
Overall	80	86	94	84	73

Table 1.5 GST revenue effects ($m)

Type of action	2019–20	2020–21	2021–22	2022–23	2023–24
Preventative actions and sustained compliance	370	426	390	398	319
Sustained lodgment compliance	477	370	224	346	364
Total	847	796	614	744	683

Note: Total revenue effects which include audit and lodgment actions reported in Table 2.3.

Table 1.6 Other measures

Measure	2019–20	2020–21	2021–22	2022–23	2023–24
GST collection costs as a percentage of GST revenue (%)	0.92	0.71	0.87	0.78	0.70
TRS claims rejected (no.)	11,487	780	2,157	8,416	10,457
GST Compliance Program (Schedule D) return on investment (ratio)	15.5:1	11.3:1	30.1:1	23.5:1	12.9:1
GST assured (%)	8.8	9.1	7.8	–	–

Note: Results are not available for the given years.

Performance reports

Using this report

Schedule	Location in this report
GST Administration Performance Agreement	These outcomes are presented throughout the report
Schedule A – Performance outcome measures	Schedule A – the performance measure reference is identified in the note below each table. You can find a particular result using the search function with the performance measures details, for example, ‘2c’
Schedule B – GST Budget and administration activities	GST administration expenditure chapter
Schedule C – Monitoring and review arrangements	GST administration chapter (including reporting responsibilities and ad hoc report information)
Schedule D – 2023–24 Budget Measure: GST Compliance Program – four-year extension	GST Compliance Program chapter

Due to the rounding of figures throughout the report, totals in tables may differ from the sum of its components.

Performance outcomes

The ATO is accountable for GST administration and collecting GST revenue effectively. This includes optimising voluntary compliance by effectively and efficiently managing the administrative and compliance risks by committing to:

• world’s best practice
• cost-effectiveness and transparency
• enhancement with digital transformation
• cooperative relationships.

Our commitment and practices continue to ensure our results against the agreed Schedule A measures in the following categories:

• maintain compliance
• client engagement outcomes
• cost-effective administration.

Our administration of cross-border GST has been supported this year by:

• active involvement in Organisation for Economic Co-operation and DevelopmentExternal Link (OECD) initiatives that enhance international consistency of GST policy design and support tax administration
• successful targeted and tailored communications including an international advertising campaign for non-resident businesses in the United States of America and United Kingdom
• developing differentiated risk management approaches in response to improved use of banking card payment data to identify non-resident businesses with unmet GST obligations.

Our Governance arrangements provide transparency of our accountability to states and territories.

We use data, research and engagement to plan future compliance enhancements and prevent disputes. Our analytic tools access the wealth of data we hold to support those who want to comply and make it harder for those who chose not to.

We maintain and further enhance cooperative relationships with key stakeholders, in particular:

• states and territories
• Treasury
• Department of Home Affairs (including Australian Border Force).

We work collaboratively with the Treasury to manage our working relationship with the states and territories, enabling us to:

• consult more effectively
• inform them of GST risks and issues
• improve outcomes.

The GST Stewardship Group

By using the knowledge, experience and perspectives of the members of the GST Stewardship Group we aim to improve our administration.

Co-chaired by the Deputy Commissioner International, Support and Programs, it includes representatives with a strong background in GST law and administration from:

• business and industry
• professional associations
• academia
• Commonwealth, state and territory treasuries.

A review and renewal of this group’s external membership was completed in 2023–24 through an expression of interest process. This resulted in 5 new members and the appointment of a new external co-chair. This led to a range of fresh perspectives and views improving engagement and outcomes.

Community satisfaction

We conduct research to measure the levels of trust the general Australian community has in the way the ATO administers the tax, superannuation and registry systems. For the 2023–24 trust metric we achieved the same result as last year, 63 out of 100.

Separate research measured the level of service satisfaction clients had regarding their recent interaction with the ATO, either acceptable or excellent. The 2023–24 result for overall client service satisfaction was 73%, similar to the 2022–23 result.

The service satisfaction result for clients who recently interacted with us about GST was 84%, 2 percentage points above the 2022–23 result.

Monitoring and review arrangements

Governance arrangements

The GST Program branch provides leadership, governance and assurance to ensure we deliver on our performance agreement. This includes a focus on the whole-of-GST product risk, strategy, capability and resource management.

The Deputy Commissioner, International, Support and Programs is the GST Product Owner and is responsible for the administration of the GST product. As the GST Leadership Group chair, they also oversee the highest level of GST product committee governance incorporating strategic direction, effectiveness, efficiency and sustainability.

Other committee members include Deputy Commissioners involved in administering the GST product and Assistant Commissioners from GST Program and ATO Finance.

The accountability mechanisms and forums depicted in the framework in Figure 1.2 show our quarterly reports of agreed performance outcomes.

We report through governance forums, escalating to the Council on Federal Financial RelationsExternal Link (CFFR).

Audit arrangements

The Australian National Audit OfficeExternal Link conduct an annual special purpose audit of GST costs and the systems for control of GST costs for the ATO. We provide a copy of the audit report to GSTAS (through GPAS).

Figure 1.2 Accountability framework