SCHEDULE C – MONITORING AND REVIEW ARRANGEMENTS

C1

To provide assurance to the CFFR that the ATO is achieving the agreed performance outcomes, the ATO will report to GSTAS (through GPAS) at least twice yearly. In addition, the ATO will provide a brief quarterly overview for the September and March quarters.

C2

The first reporting event will occur in the first half of the financial year and the ATO will provide a report on its performance in administering the GST in relation to the immediate prior year. The ATO will also report on the actual full year costs of administering the GST in the immediate prior year, together with any recommendations on ex-post adjustments that may be necessary.

C3

The second reporting event will occur during the second half of the financial year, and the ATO will provide a report on its performance in administering the GST during the first half of the current financial year. The ATO will also provide a strategic budget submission, in accordance with the budget formulation process set out in Note 4 to Schedule B.

C4

In fulfilling these reporting requirements, the ATO will provide to GSTAS (through GPAS) information on the following matters as appropriate:

• financial information relating to the ATO’s costs in administering the GST
• reports of audits of GST costs and the systems for control of costs
• reports showing GST workloads and other information necessary to demonstrate performance in relation to the measures outlined in Schedule A
• key emerging compliance issues
• performance on activities specifically related to additional expenditure; refer to Schedule D for the summary spreadsheet that outlines commitments by year for the Budget Measure, GST Compliance Program
• as compliance effectiveness measures are developed, they will be considered for inclusion during the annual review period, and
• significant issues impacting on the GST administrative base.

C5

The ATO will also report on an ad hoc basis as agreed between the Parties. Such ad hoc reports may include (but are not restricted to):

• matters relating to the material cost-effectiveness of GST administration; ANAO reports directly relating to GST administration
• information on GST-related litigation
• updates on relevant compliance and cost of compliance research
• updates on ATO internal governance arrangements as they relate to GST administration
• information on ATO community surveys, and
• updates on digital transformation program progress.

C6

The objective of the special purpose audit (the audit) is to provide an independent opinion to the CFFR as to whether:

• the special purpose reports prepared by the ATO relating to GST costs are free as a whole from material misstatement
• the ATO has maintained, in all material respects, effective controls relating to the monitoring and reviewing of GST activity costs, and
• the cost attribution model is appropriately allocating the correct level of GST administration costs.

C7

The audit will provide reasonable assurance to the CFFR that:

• the GST Cost Statement prepared by the ATO presents fairly in accordance with the accounting policies described in Schedule B, and
• the ATO has maintained, in all material aspects, effective controls relating to the monitoring and reviewing of GST activity costs as specified in Schedule B.

C8

The terms of reference for the audit engagement will provide for:

• an audit report which identifies the scope of the special purpose audit, and an opinion on the matters specified in clause C7
• review of the terms of reference at specified intervals, and
• materiality levels to be determined in accordance with applicable Accounting Standards.

C9

In accordance with accepted audit practice, all reports emanating from the special purpose audit will be provided by the ANAO directly to the ATO. The ATO will provide a copy of the audit report to the CFFR as soon as it becomes available.

C10

Additional costs to the ATO associated with the audit of GST costs and the system for control of GST costs will be included in the cost of GST administration.

C11

The Parties may agree to an independent review of any aspect of GST operations that has a material impact on the agreed outcome. GSTAS (through GPAS) will be consulted when developing the terms of reference for the review.