Appendix A – ATO performance | Australian Taxation Office

We measure the extent to which we are achieving our purpose as an organisation, through a range of performance measures that align with our strategic objectives.

Strategic objective G1

Table 1A: Latest performance results and performance targets for 2021–22 to 2022–23
Performance measure	Latest result (2020–21)	Performance target 2021–22	Performance target 2022–23
Trust – Community trust in the ATO and the system	Not reported yet New measure for 2022–23	Not applicable	Under development
Registration – Proportion of companies and individuals registered in the system	Companies registered in the system: 66.3%(2) Individuals registered in the system: 106.5%(3)	See note(4)	See note(4)
Lodgment – Proportion of activity statements and income tax returns lodged on time	Activity statements lodged on time: 71.0% Income tax returns (2019–20 returns) lodged on time: 83.3%	Activity statements lodged on time: 78% Income tax returns lodged on time: 83%	Activity statements lodged on time: 78% Income tax returns lodged on time: 83%
Payment – Proportion of liabilities paid on time by value	88.0%	88%	88%
Tax gap – As a proportion of revenue	Refer to the Commissioner of Taxation annual report 2020–21 (page 60) for detailed information and trends	See note(5)	See note(5)
Debt – Ratio of collectable debt to net tax collections(6)	8.3%	Below 8.0%	Between 8.0% and 8.5%
Total revenue effects – Tax revenue from all compliance activities	$11.5 billion	$15 billion	$15 billion

2 The result compares the number of companies registered by the ATO to the number of companies registered by the Australian Securities and Investments Commission (ASIC). Not all companies that are registered with ASIC have taxation and reporting requirements. Therefore, the proportion is always expected to be well below 100%.

3 The trends in registration of individuals are closely aligned to population growth. This result is always expected to remain above 100% because the ATO’s definition of ‘resident’ captures a greater number of people than the Australian Bureau of Statistics (ABS) estimated resident population. This is particularly true for individuals who have recently migrated to Australia or are seasonal workers.

4 The ATO aims to ensure that all entities that are required to participate in the tax and superannuation systems are registered on the ATO’s client register, allowing a tolerance of 2% (companies) and 5% (individuals) from the last reporting period (increase or decrease).

5 Reduce the gap to a level as low as practicable given the nature and complexity of the law and the resources available.

6 Debt performance targets have increased due to the broader economic environment, which has been impacted by factors including the COVID-19 pandemic.

Table 1B: Performance targets for 2023–24 to 2025–26
Performance measure	Performance target 2023–24	Performance target 2024–25	Performance target 2025–26	Data Sources
Trust – Community trust in the ATO and the system	Under development	Under development	Under development	ATO client survey
Registration – Proportion of companies and individuals registered in the system	See note(7)	See note(7)	See note(7)	ASIC data, ATO systems, ABS data
Lodgment – Proportion of activity statements and income tax returns lodged on time	Activity statements lodged on time: 78% Income tax returns lodged on time: 83%	Activity statements lodged on time: 78% Income tax returns lodged on time: 83%	Activity statements lodged on time: 78% Income tax returns lodged on time: 83%	ATO systems
Payment – Proportion of liabilities paid on time by value	88%	88%	88%	ATO systems
Tax gap – As a proportion of revenue	See note(8)	See note(8)	See note(8)	ATO systems, models, economic data (9)
Debt – Ratio of collectable debt to net tax collections(10)	Between 7.5% and 8.0%	Between 6.5% and 7.0%	Below 6.0%	ATO systems, ATO financial statements
Total revenue effects – tax revenue from all compliance activities	$15 billion	$15 billion	$15 billion	ATO systems, models

7 The ATO aims to ensure that all entities that are required to participate in the tax and superannuation systems are registered on the ATO’s client register, allowing a tolerance of 2% (companies) and 5% (individuals) from the last reporting period (increase or decrease).

8 Reduce the gap to a level as low as practicable given the nature and complexity of the law and the resources available

9 For further details, see Principles and approaches to measuring gaps, available at ato.gov.au/taxgap

10 Debt performance targets have increased due to the broader economic environment, which has been impacted by factors including the COVID-19 pandemic.

Strategic objective G2

Table 2A: Latest performance results and performance targets for 2021–22 to 2022–23
Performance measure	Latest result (2020–21)	Performance target 2021–22	Performance target 2022–23
Influence – Influence tax and superannuation system design through a mutually positive relationship with Treasury and the provision of quality advice	Very Good	Good	See note (11)

11 Demonstrated effort in supporting Treasury to design and deliver effective tax and superannuation policy.

Table 2B: Performance targets for 2023–24 to 2025–26
Performance measure	Performance target 2023–24	Performance target 2024–25	Performance target 2025–26	Data sources
Influence – Influence tax and superannuation system design through a mutually positive relationship with Treasury and the provision of quality advice	See note(12)	See note(12)	See note(12)	Qualitative analysis and Treasury endorsement of result

12 Demonstrated effort in supporting Treasury to design and deliver effective tax and superannuation policy.

Strategic objective C1

Table 3A: Latest performance results and performance targets for 2021–22 to 2022–23
Performance measure	Latest result (2020–21)	Performance target 2021–22	Performance target 2022–23
Compliance cost – Adjusted median cost to individual taxpayers of managing their tax affairs	2.5% decrease (2018–19 tax returns)	Remain steady	Remain steady
Digital – Proportion of inbound transactions received digitally for key services	94%	92%	95%
Digital – Proportion of outbound interactions issued digitally for key services	Not reported yet New measure for 2022–23	Not applicable	Under development
Service satisfaction – Client satisfaction with their recent interaction with us	Not reported yet New measure for 2022–23	Not applicable	80%

Table 3B: Performance targets for 2023–24 to 2025–26
Performance measure	Performance target 2023–24	Performance target 2024–25	Performance target 2025–26	Data sources
Compliance cost – Adjusted median cost to individual taxpayers of managing their tax affairs	Remain steady	Remain steady	Remain steady	ATO tax return data, models
Digital – Proportion of inbound transactions received digitally for key services	95%	95%	95%	ATO systems
Digital – Proportion of outbound interactions issued digitally for key services	Under development	Under development	Under development	ATO systems
Service satisfaction – Client satisfaction with their recent interaction with us	80%	80%	80%	ATO client survey

Strategic objective C2

Table 4A: Latest performance results and performance targets for 2021-22 to 2022-23
Performance measure	Latest result (2020–21)	Performance target 2021–22	Performance target 2022–23
Working together – Partner perceptions of how we are working together with them to administer the tax, superannuation and registry systems(13)	71/100	Equal to or better than the 2018–19 result (64/100)	Equal to or better than the 2018–19 result (64/100)

13 The result is calculated using survey responses from 3 partner groups – Tax Professionals, Digital Service Providers and APRA-regulated superannuation funds. A weighting of 50% is applied for Tax Professionals, reflecting their role as the ATO’s primary partner group, while the remaining 2 groups are each given a 25% weighting.

Table 4B: Performance targets for 2023–24 to 2025–26
Performance measure	Performance target 2023–24	Performance target 2024–25	Performance target 2025–26	Data sources
Working together – partner perceptions of how the ATO is working together with them to administer the tax and superannuation systems	Equal to or better than the 2018–19 result (64/100)	Equal to or better than the 2018–19 result (64/100)	Equal to or better than the 2018–19 result (64/100)	ATO partner survey

Strategic objective W1

Table 5A: Latest performance results and performance targets for 2021-22 to 2022-23
Performance measure	Latest result 2020–21)	Performance target 2021–22	Performance target 2022–23
Culture – Level of employee engagement	76%	Equal to or better than the average result for large agencies	Equal to or better than the average result for large agencies
Staff experience – Employee perceptions around whether they have access to the tools and resources needed to perform well	72%	Equal to or better than the average result for large agencies	Equal to or better than the average result for large agencies

Table 5B: Performance targets for 2023–24 to 2025–26
Performance measure	Performance target 2023–24	Performance target 2024–25	Performance target 2025–26	Data sources
Culture – Level of employee engagement	Equal to or better than the average result for large agencies	Equal to or better than the average result for large agencies	Equal to or better than the average result for large agencies	Employee survey (APS census)
Staff experience – Employee perceptions around whether they have access to the tools and resources needed to perform well	Equal to or better than the average result for large agencies	Equal to or better than the average result for large agencies	Equal to or better than the average result for large agencies	Employee survey (APS census)

Strategic objective O1

Table 6A: Latest performance results and performance targets for 2021–22 to 2022–23
Performance measure	Latest result (2020–21)	Performance target 2021–22	Performance target 2022–23
Tax returns – Proportion of pre-filled items accepted without change	87.1%	90%	90%

Table 6B: Performance targets for 2023–24 to 2025–26
Performance measure	Performance target 2023–24	Performance target 2024–25	Performance target 2025–26	Data sources
Tax returns – Proportion of pre-filled items accepted without change	90%	90%	90%	ATO tax return data, models, and third-party data

Strategic objective O2

Table 7A: Latest performance results and performance targets for 2021–22 to 2022–23
Performance measure	Latest result (2020–21)	Performance target 2021–22	Performance target 2022–23
Identity matching – Proportion of data items matched to client identifiers	Not reported yet New measure for 2022–23	Not applicable	Under development
Availability – Key digital systems availability	99.9%	99.5% (excluding planned outages)	99.5% (excluding planned outages)

Table 7B: Performance targets for 2023–24 to 2025–26
Performance measure	Performance target 2023–24	Performance target 2024–25	Performance target 2025–26	Data sources
Identity matching – Proportion of data items matched to client identifiers	Under development	Under development	Under development	ATO systems, Third-party data
Availability – Key digital systems availability	99.5% (excluding planned outages)	99.5% (excluding planned outages)	99.5% (excluding planned outages)	ATO systems, ServiceNow

Strategic objective F1

Table 8A: Latest performance results and performance targets for 2021–22 to 2022–23
Performance measure	Latest result (2020–21)	Performance target 2022–23	Performance target 2022–23
Cost of collection – Cost to collect $100 (9)(14)	$0.57 (including GST) $0.54 (excluding GST)	Consistent with trend	Consistent with pre-pandemic trend

14 In 2020–21, the cost to collect $100 experienced an unusually large reduction on the prior year (when it was $0.66 including GST and $0.62 excluding GST). This was partly due to the ATO’s continued response to the global COVID-19 pandemic, with a decrease in collection costs as staff were diverted away from business as usual activities. Additionally, revenue collections in 2020–21 increased in comparison with the previous financial year due to the recovery in economic conditions and strong commodity prices. This magnitude of decline is not expected to continue, and hence the target is ‘consistent with pre-pandemic trend’ for the next couple of years.

Table 8B: Performance targets for 2023–24 to 2025–26
Performance measure	Performance target 2023–24	Performance target 2024–25	Performance target 2025–26	Data sources
Cost of collection – cost to collect $100	Consistent with pre-pandemic trend	Consistent with trend	Consistent with trend	ATO systems, models

Appendix A – ATO performance