18th December 2017

The ATO Commissioner’s Annual Report was recently released. In the article, Commissioner of Taxation Chris Jordan reviews the year noting the ATO’s highlights, lowlights and what Australian citizens can expect in the coming years.

The report generally notes that 2017 was a positive year for the ATO. However, Jordan states that the agency’s integrity was tested with the IT hardware failures and associated service interruptions that occurred, as well as the revelations revealed from May 2017’s Operation Elbrus.  

These setbacks caused the ATO to take a number of steps to restore public confidence: the agency instigated several reviews, started an intensive program to resolve and develop their IT systems, and responded to external critics.

According to the report, the ATO’s efforts to resolve internal problems and regain public confidence paid off. The Commissioner’s article backs up this claim with a number of impressive statistics. For example, in Tax Time 2017, there are more lodgments than the previous year, with a total of 7.7 million for tax agents and self preparers. Also, compared to the same time last year, there has been a 30% reduction in complaints in regards to system performance.

The report then goes on to review the highlights from the previous year. Below are some of the most notable:

  • The ATO’s Tax Avoidance Taskforce raised $4 billion of additional liabilities against several large multinationals and businesses.
  • The early engagement and alternative dispute resolution resulted in a 61% reduction in appeals to the Administrative Appeals Tribunal. In 2016-17 there were only 357 appeals compared to 922 in 2013-2014.
  • Reminding habitual late payers with automated SMS, instead of a formal letter or phone call, brought in an additional $800 million in payments. As the SMS cost just $.09, compared to $1 cost of a formal letter, the ATO is now able to act more efficiently and save money on following up with late payers.
  • There are now 4 million enrollments in the ATO’s voice authentication service, which allows citizens to prove their identity in a faster and more efficient manner.
  • SuperStream, the information sharing and standardised electronic payment system for super funds and employers, produced notable efficiencies: around $400 million per year for funds and $400 million per year for employers. SuperStream produced savings for members at approximately 2.4 billion per year.

In the year ahead, the Commissioner notes that the ATO will continue to reform their administration of the super and tax systems. They will also continue to place more emphasis on the client experience and developing a service culture.

The reports notes some of the areas the ATO’s efforts will be focused on, which include sensible risk management, greater transparency with clients, the prevention of problems instead of correction, better use of data for compliance and service purposes, and greater empathy and appreciation for tax payers.

The report ends with Commissioner Chris Jordan stating that his vision for the ATO is to elevate the organisation’s service to the standard of the top organisations in the world. He then finishes the article thanking all those who are part of the ATO.

The full report can be viewed at the ATO’s website, which can be found here.



         Chartered Accountants

Tax Institure