GST administration annual performance report 2023–24
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On behalf of the Commissioner of Taxation, I am pleased to present the GST administration annual performance report 2023–24.
Our key outcomes for 2023–24, as shown in Figure 1.1, include:
- $84.9 billion raised, including $5.3 billion by the Department of Home Affairs – this was 4.4% (or $3.6 billion) higher than last year (though 1.2%, or $1 billion, below the 2023–24 Budget estimate of $85.9 billion)
- $3.0 billion liabilities raised from ATO compliance activities – this includes $1.6 billion raised through the GST Compliance Program, exceeding the program’s planned commitment of $950 million by $665 million (or 70%).
Also shown in Figure 1.1 is the net GST gap calculated for 2022–23. This is estimated to be approximately 9.0%, resulting in the ATO receiving 91% of the GST revenue that was expected to be collected, the bulk of which was collected voluntarily. In part, this net GST gap is attributable to challenging economic conditions, which continued into 2023–24.
Whilst we supported the taxpayers who engaged with us, those who chose not to engage or purposefully avoided payments were targeted with earlier firmer action.
The increasingly digital economy generates new risks, challenges and focus areas in the GST environment. Ongoing evaluation and review of our GST risk models remained crucial to maintaining and enhancing their effectiveness and reliability.
Our targeted GST communications and engagement across the GST ecosystem, including the GST and Tax Practitioner Groups, remained instrumental in supporting tax professionals and taxpayers to comply with their obligations.
Looking forward
Willing participation supports our tax system to excel in its innovation, integrity, fairness, efficiency and transparency.
To improve GST compliance in this everchanging digital environment, we will invest in improvement and transformation activities to capitalise on evolving opportunities and address emerging issues. We will safeguard the system against misuse and ensure taxpayer compliance through our continued emphasis on preventive and detected measures.
Our key focus areas for GST administration in 2024–25 include:
- using our Three Tier Models to inform our risk management approach
- strengthened tailored GST debt collection with a business debt focus
- greater controls for GST registration and further targeted pre-refund integrity checks
- enhanced, responsive fraud control frameworks and targeted treatment strategies.
Our commitment to maximising the return of GST revenue to the states and territories with sustainable, effective and efficient administration is balanced between:
- the cost of administration
- the compliance cost for taxpayers
- maintaining community confidence
- optimising voluntary compliance
- facilitating a level playing field for all taxpayers.
Lastly, to the representatives from Treasury and the states and territories on the GST Administration Subcommittee and the GST Policy and Administration Subgroup, thank you.
I look forward to a future fostered by your ongoing support and advice.
Hector Thompson
Deputy Commissioner of Taxation
GST outcomes
Figure 1.1: GST 2023–24 outcomes