ATO Corporate plan 2016 –17 · PDF filePurpose The ATO contributes to the economic and...

ATO Corporate plan 2016 –17

Acronyms and initialisms

ABR Australian Business Register

ACNC Australian Charities and Not-for-profits Commission

APS Australian Public Service

ATO Australian Taxation Office

AWOTE average weekly ordinary time earnings (for full-time adults)

BAS business activity statement

CIO Chief Information Officer

COO Chief Operating Officer

GST goods and services tax

ICT information and communications technology

OECD Organisation for Economic Co-operation and Development

SBR Standard Business Reporting

TPB Tax Practitioners Board

II ATO Corporate plan 2016–17

We want the ATO to be relevant and valuable to the

Australian community for the long term – trusted and

respected here and internationally and considered a

leading organisation by all stakeholders.

As the accountable authority of the Australian Taxation Office (ATO), I am pleased to present the ATO corporate plan 2016–17, which covers the periods 2016–17 to 2019–20, as required under paragraph 35(1)(b) of the Public Governance, Performance and Accountability Act 2013.

This plan sets out our purpose, operating environment, risks, capability and planned performance over the four-year period.

We have been driving significant change – to improve the client and staff experience, to improve our organisational performance, and to increase trust and confidence in the tax and superannuation systems.

We are making it easier for people to do the right thing and providing certainty for them. We are engaging early with stakeholders in the tax and superannuation professions, software providers, government and other organisations to provide contemporary services that foster willing participation.

Building on the positive outcomes achieved through our Reinventing the ATO program to date, 2016–17 will be the year we deliver a range of improvements to products and services that enhance the experience for our staff and all segments of the community (including individual taxpayers, businesses, superannuation funds, tax professionals and not-for-profit organisations).

We will make 2016–17 count by delivering: > myTax for all individuals who wish to self-prepare > a new practitioner lodgment service for tax professionals > improved help and support for all clients > leadership and contributions to international tax administration reform > our commitments to the community and government to tackle tax avoidance > a better experience for business through streamlining business registration.

The results of this plan will be reported in the Commissioner of Taxation annual report 2016–17.

The corporate plans for the Tax Practitioners Board and the Australian Charities and Not-for-profits Commission have been produced as separate documents.

Chris Jordan

Commissioner of Taxation

Foreword

ATO Corporate plan 2016–17 1

Contents

Acronyms and initialisms ii

Foreword 1

01. Purpose 3

Goals 4 Strategies 6 Priorities 8

02. Environment 9

Service expectations 9 Working with stakeholders and scrutineers 9 Fiscal responsibility 9 Changing APS 10 Cyber security 10 Maintaining community confidence 10

03. Risk oversight and management 11

04. Capability 15

Leadership 15 People 15 Demographics 16 Location 16 Systems and data 16 Shared and common services 17

05. Performance 18

Australian Taxation Office 18 Australian Business Register 21 Tax Practitioners Board 22 Australian Charities and Not-for-profits Commission 22 Administered programs 23

2 ATO Corporate plan 2016–17

Purpose

The ATO contributes to the economic and social wellbeing of Australians by fostering willing participation in our tax and superannuation systems. We are:

> making it easier for people to participate > delivering contemporary and tailored service > ensuring purposeful and respectful relationships > a professional and productive organisation.

MissionWe contribute to the economic and

social wellbeing of Australians by fostering willing participation in our tax

and superannuation systems

Strategies > Build a culture that embodies our values and transforms the client experience > Simplify interactions, maximise automation and reduce costs > Connect with the community and other agencies in meaningful ways > Influence policy and law design for more certain outcomes > Use data in a smarter way to improve decisions, services and compliance > Reshape the workforce and how we work, to optimise capability and

performance

VisionWe are a leading tax and

superannuation administration known for our contemporary

service, expertise and integrity

Contemporary and tailored

service

Easy for people to

participate

Professional and productive

organisation

Purposeful and respectful relationships

Goals

01


Goals

Our goals provide focus and direction, driving our organisation to the achievement of our vision.

Easy for people to participate

We focus on making it as easy as possible for people to get things right. Our support and services are designed to make it easier to engage with the tax and superannuation systems.

Our improvements to information, tools and services are designed following consultation with clients, tax and superannuation professionals and other stakeholders. We provide self-service information and tools (such as the ATO app, myDeductions tool, and educational products), as well as front-line services to provide assistance when needed.

We support businesses by making it quicker, easier and cheaper to transact with us. In future, businesses will have a single business account they will access via a streamlined registration and authentication service. We work with software providers to integrate our services with their products, enabling seamless interactions and reporting.

We understand that the costs incurred in dealing with government, including the ATO, impact on businesses, tax professionals and other stakeholders. We continue to contribute to the government’s deregulation agenda by working with businesses and our stakeholders, so that we understand their perspectives and can address further irritants and unnecessary regulatory costs.

Contemporary and tailored service

As a contemporary organisation, we provide convenient and accessible services, tailored according to risk, for our clients and intermediaries. We continue to consult and test our assumptions to ensure we are delivering the right support and services.

We are building on the foundations we have in place, such as myTax, to provide convenient and accessible online options for our clients. We will continue to expand the use of myGov and the provision of online services, our website, portals and the ATO app.

When our clients need to contact us directly, we provide a range of tailored services, such as call-backs, click-to-chat, personal appointments and case conferencing.

We want the community to have confidence in our ability to address non-compliance and ensure the tax and superannuation systems are fair for everyone. Our compliance activities continue to be tailored, targeting those who are not willing to do the right thing.

Tax and superannuation professionals are important to us. We invest in these relationships by taking the time to understand their perspective and work practices. We do this through practice visits, conversations, and industry consultations, in order to meet their needs. For example, the practitioner lodgment service is now a contemporary platform that enables registered agents to access services directly through their practice management software.


Purposeful and respectful relationships

The quality of our relationships with the community, government, our stakeholders and scrutineers can influence the overall effectiveness of the ATO and outcomes for the tax and superannuation system.

While a significant contributor, we do not control all aspects of the system. We have a shared responsibility with our stakeholders and scrutineers in continuing to build community trust and confidence. We prioritise and invest in these relationships to improve overall outcomes.

We continue to strengthen the relationships we have with the tax and superannuation professional community. Open dialogue, understanding their perspective and experiences facilitates early identification and resolution of issues for the broader benefit of all.

We are improving client satisfaction with the process, service and fairness in managing disputes, including independent reviews. Through respectful relationships we are transparent with clients about what we know, and provide information in a way that helps them meet their obligations.

Our productive relationships with the states and territories ensure early visibility of emerging issues relating to goods and services tax (GST) administration. Our consultation arrangements with stakeholder and industry groups provide flexible and responsive mechanisms for consulting to improve outcomes more broadly.

Our commitment to working with Treasury, the OECD and international agencies accelerates the development of solutions to broad challenges faced by the global system, such as base erosion and profit-shifting and the increasingly digitised economy.

Professional and productive organisation

Delivering our change agenda and business improvements is about transforming our words into actions. It is about leading and managing well, and mobilising and motivating our people.

Our capability and professionalism are important. As we embrace new ways of working, we determine the skills and expertise needed in our workforce and invest in learning and development for our professional workforce streams.

We are committed to becoming an increasingly diverse and inclusive organisation that reflects the community we serve. We will continue to develop initiatives that ensure there are no conscious or unconscious barriers to employment in the ATO. These initiatives will reflect wider Australian Public Service (APS) undertakings. They will specifically drive outcomes for gender equity (especially at senior leadership levels), Indigenous employment, and employment of Australians with disability, as well as being inclusive of employees from other diversity groups.

Our Culture strategy defines the way we work with each other, as well as our clients and stakeholders. It is about our organisation doing business in an easier, contemporary, and more responsive way.


Strategies

Our strategies guide us in successfully achieving our goals.

Building a culture that embodies our values and transforms the client experience

Having the right culture is critical to delivering enduring change. It underpins the transformation of the client experience and creation of the right experience for our people.

With our staff, we have developed a common understanding of the mindset, attitudes and behaviours critical to a client-focused culture consistent with the principles of the Taxpayers’ charter and supported by our new cultural traits: client focused; united and connected; empowered and trusted; future oriented; passionate and committed. These cultural traits are transforming the client and staff experience. They provide a clear, unambiguous statement of our cultural intent, which we continue to strengthen.

With this shared understanding of our culture now in place we are focused on embedding it into all aspects of our administration. We will be monitoring our progress to reinforce the new way of doing things. We will increasingly design our products, processes and services for clients and staff in a manner that aligns with our new culture.

Simplifying interactions, maximising automation and reducing costs

We continue to improve the client experience through a focus on easy-to-access interactions that reduce the cost of compliance.

Increasingly, our digital infrastructure and contemporary services allow us to engage with clients, our key stakeholders and each other in an online and mobile environment. We are part of, and will strongly support, the government’s digital services agenda, including through the Digital Transformation Office in the Prime Minister and Cabinet portfolio.

We will facilitate more streamlined business-to-government and business-to-business online interactions. This will be achieved through increased use of a complete and single source of business information, and broader adoption of consistent information exchange standards.

Connecting with the community and other agencies in meaningful ways

Continuing improvement of our services, administration and ultimately the client experience relies on meaningful connection with the community, key stakeholders and other agencies.

We are continuing to refine and build strength in our consultation arrangements. We connect with our diverse range of stakeholders who, through their own roles and responsibilities or unique expertise, are able to provide us with insights that support improved outcomes.

We assess our services to ensure they are appropriately targeted to meet needs and adjust our strategies accordingly. The ‘Show me how’ initiative is an example of a new approach to educating our clients, as are our pop-up service centres; each seeking to keep clients informed and meet needs in a meaningful way.

We connect with other agencies that can help us provide improved services to particular market segments. Our relationship with the Australian Small Business and Family Enterprise Ombudsman is a good example. This relationship provides us with further insights into what matters for small business. It also provides an additional channel through which we can communicate with small business to provide updates on the support and services we offer.


Influencing policy and law design for more certain outcomes

Our connection with clients, tax and superannuation professionals and global partners provides us with insights into the overall health of the tax and superannuation systems. Through these relationships, we build an understanding of the issues and complexities affecting the integrity and perceptions of fairness in the system. As a trusted and respected administrator, we are able to influence policy and law design to shape better outcomes.

Maintaining a strong relationship with Treasury and other government agencies is a priority, as this assists us in keeping the government informed of issues relating to the administration of the tax and superannuation systems. To achieve certainty for the community on the operation of the tax and superannuation legislation, we manage the Test Case Litigation program. We also seek to better understand the experience of businesses, tax professionals and the broader community, to ensure policies are effective, pragmatic and accessible.

We are strengthening our tax design capability by bringing together policy, law and administrative design expertise. This helps us to strengthen our focus and reinforce our position as a credible voice to shape and implement government policy and system-wide improvements.

We will ensure there is balance in the debate on tax avoidance and that the discussion on the tax and superannuation system is informed by the facts. By working with our partners in the system, including Treasury, OECD and international agencies, we influence changes that can deliver solutions to these challenges.

Using data in a smarter way to improve decisions, services and compliance

Increasingly powerful data models and tools enable us to make better use of our data holdings to support decision making, advise government and deliver outcomes with greater agility.

We create and maintain a real-time view of our clients’ tax and superannuation positions, current circumstances and compliance behaviours so we can better personalise our services and differentiate our compliance treatments.

As part of this work, we are also using our data services and analytics to enable us to understand complex business structures and provide assistance based on the circumstances of the client.

Integrity of the tax and superannuation systems will be maintained by combining intelligence activities, audits, criminal investigations and prosecutions. We work with partner agencies to deliver services; share data, intelligence and expertise; and participate in multi-agency task forces.

Reshaping the workforce and how we work, to optimise capability and performance

Our focus is on building and sustaining a workforce that is engaged, professional and respected for its expertise.

We are continuing to reshape and rebalance our workforce, using a mix of employment arrangements to align with evolving business processes and priorities. We build capability by attracting talented new staff, providing targeted development programs for existing staff, and developing our technical and leadership skills in a contemporary manner.

By focusing on our capability and trialling new flexible workspaces, approaches and tools, we are positioning the ATO as a competitive employer with a workforce that is flexible and responsive to meet the challenges of the future.

Our workforce initiatives support the wider APS undertakings on gender equity, Indigenous employment and diversity. Our approaches are positioning us to transform the way we do business, in line with the APS’s recent Unlocking potential report.


Priorities

In 2016–17, our focus is on the delivery of a better client experience. We will achieve this by:

> Helping people who are willing to do the right thing by tailoring our communication, engaging and building awareness of the products and services available.

> Strengthening our relationships with tax and superannuation professionals in a rapidly changing digital environment. We will help them adapt to new business models so they can continue to support the needs of their clients. We will also build on our relationships with other stakeholders in the system, such as software developers, as we continue to integrate our systems and services.

> Actively supporting Treasury in identifying problems that undermine trust and confidence in the tax system, and developing policy options to address the issues. A particular focus will be on establishing the Tax Avoidance Taskforce to expand and improve our performance in addressing corporate tax avoidance and increase confidence in the ATO’s administration of the tax system.

> Reinforcing the positive cultural changes we have made, ensuring they are reflected in the people, processes and services that support our administration.

> Shaping and implementing a workforce plan and location strategy that guides the design and make-up of our workforce to meet immediate and longer-term needs. Our plans will reflect agility, capability, gender equity and diversity requirements to support our commitments to government and the community. In line with this, we will enhance the ‘bench strength’ of our capability by refreshing our approach to attracting new talent, introducing new approaches to learning and development, and performance management.

> Ensuring the integrity of data and information is maintained. New technologies, including integrated services, can also introduce new risk. As we enhance our systems to support better services, we remain focused on maintaining the security and integrity of our data and information. Understanding new threats and protecting our systems from these attacks is a priority. We will continue to adopt appropriate measures to test our systems, and ensure we have a robust approach for new services, products and technologies.

> Delivering excellence in corporate services and as a leading agency, supporting the whole-of-government agenda to drive efficiency and effectiveness across the public sector, through shared services, contestability and red tape reduction. We will ensure we maintain the capacity and resources to continue to meet government commitments and deliver on our core business.


Delivering on our priorities for 2016–17 through to 2019–20 requires an understanding of the environment in which we operate. Our operating environment is influenced by factors at the internal, domestic and international level. Successful strategies require proper consideration of these influences; both those that we can use to deliver improved outcomes and those that must be understood and managed as risks.

Service expectations

As client expectations change, we need to balance the costs and benefits of meeting expectations with making responsible decisions about technology, business and capability investments. We need to understand the risks to our outcomes and the level of investment required to mitigate those risks.

Working with stakeholders and scrutineers

Tax and superannuation professionals play an important role in helping individuals and businesses meet their tax and superannuation obligations. They also have a role in helping to maintain community confidence in the system. We are committed to working with practitioners to ensure they have input into the design of future ATO products and services that will lead to an improved experience for them and their clients.

As the way in which we interact is changing, emerging new partnerships influence community perceptions of the tax and superannuation systems. For example, software developers are now building software products that enable tax practitioners and businesses to interact more easily with the ATO.

Our scrutineers are crucial to maintaining community trust and confidence in the tax and superannuation systems. Our relationship with scrutineers, such as the Australian National Audit Office and the Inspector-General of Taxation, are important in ensuring we work together to provide confidence to the community in the integrity of the system as a whole.

Fiscal responsibility

The ongoing tight fiscal environment means all government agencies are under pressure to do business differently and achieve more with less – for example, through initiatives such as the contestability program, shared and common services, red tape reduction and the digital transformation agenda.

We have the appropriate systems and governance in place to manage our budget and track the return on our investments, to ensure we are realising expected benefits. Labour, technology and property are our most significant expenses. These require medium to long term planning and must be balanced with responsiveness to changes and opportunities arising from government.

Environment02


Changing APS

As a large agency in the Australian Public Service, we are reshaping our workforce to optimise our capability and performance. Workforce design and streamlining are reducing duplication both within and between agencies, with shared and common services supporting a more seamless client experience.

These changes within the ATO and across the public sector need to be balanced with our commitments to delivering on our core business.

Cyber security

The pace at which new technology is emerging presents challenges in identifying new risks while taking advantage of the new technology to support a better client experience.

We are committed to meeting community expectations for data security and privacy protection. We will consider and manage risks associated with new technology to protect the integrity of the tax and superannuation systems. We will continue to work with the Digital Transformation Office and across government to rationalise how authentication and authorisation is managed, and to continuously strengthen the security of digital services.

Maintaining community confidence

The ATO supports those who choose to do the right thing and deals with those who do not. In a globalised environment, tax administrations must adapt to address increasingly complex and dynamic cross-border tax issues.

Greater international cooperation is essential for Australia to combat corporate tax base erosion and profit-shifting. The ATO is a key player in leading international cooperation to ensure multinational corporations pay the right amount of tax in Australia. We will continue this focus.


We have well-established systems of risk oversight and management, in accordance with section 16 of the Public Governance, Performance and Accountability Act 2013 and the Commonwealth Risk Management Policy.

Our strategic risks are those that can ultimately affect the achievement of our mission and vision. These risks are monitored and managed by the ATO Executive.

Risk 1: People and businesses do not trust or use the products and services we have on offer

Community and client expectations about the services and products we offer continue to change as developments in technology create new ways to interact. As we harness these technologies, we work to stay in tune with client and stakeholder needs and expectations, and understand the experience they expect when interacting with us. We then co-design and develop the services we offer accordingly.

We tailor our communication so that our services and tools make it easy to participate in the system, are understood and used. We are working to ensure that our website, our technical advice and our correspondence are more easily understood.

We are identifying new ways of reaching out to our clients to raise awareness of the products and services available. Our concern is that people and businesses may not be aware of the services and tools that make it easier for them to participate.

Risk 2: The outcomes and planned benefits of our Reinvention Program initiatives fail to materialise

We are investing significant financial resources and staff expertise into initiatives that transform how our clients and staff experience the tax and superannuation systems.

These initiatives range from improving our digital infrastructure to provide more contemporary services and products that are streamlined and easy to access, to internal programs that optimise workforce capability and culture. This work will support a whole-of-government experience for the Australian community.

To ensure change is integrated, balanced and reflects government, client and staff experience priorities, we will undertake quarterly planning and reviews, enabling us to be responsive to environmental changes and resource demands. Together with a strong focus on developing and supporting our internal capability, this will allow us to quickly identify and address risks to successful delivery.

Failure to achieve the planned benefits and outcomes of our investment may degrade engagement with the tax and superannuation systems and undermine the broader relevance of the ATO to government and the community.

Risk oversight and management03


Risk 3: We fail to work effectively with stakeholders in the tax and superannuation systems, in particular, tax professionals and software providersIn our administration of the tax system, we rely on the contributions of others.

Taxpayers have the choice of dealing directly with us or using a tax professional to help them comply with their obligations. The nature of our relationships with our stakeholders will directly influence the delivery of our priorities.

As we deliver on our reinvention, we must continue to strengthen these relationships and seek new ones, recognising the changing commercial and business environment. We aim to understand the priorities and perspectives of our key stakeholders. We will continue, as far as possible, to align our priorities and direction with their expectations.

We are focused on strengthening our relationship with the tax profession, particularly as the profession changes with automation and digitisation. Eliminating the more basic transactions and form filling is affecting the business models of many practitioners.

The electronic lodgment service is being phased out this year, replaced by the new practitioner lodgment service (PLS) which is accessible through agents’ practice management software. There is heightened focus on managing this risk and ensuring the transition works well.

Given this new approach of providing service through software, it is critical that we work with software providers effectively so they can build, test, refine and market their packages in time to deliver for tax time and other important tax cycle events.

Risk 4: The community perceives the tax system as unfair and that we may not be aware of, or capable of, pursuing those who play the system or deliberately avoid their obligations

Given the attention on large corporates and tax avoidance, and on base erosion and profit shifting, there are negative perceptions of the tax system and the ATO in some parts of the community.

We are concerned that the community is not confident we are taking the necessary action with multinationals, large corporates and high-wealth individuals who are avoiding their tax obligations in Australia.

We need to actively influence these perceptions to avoid any disengagement from the tax system because others are perceived to be ‘getting away with it’. Disengagement can be assessed using measures like revenue, registrations, lodgments and payments. We need to provide the facts on performance and behaviour so that people can have confidence that the system, and our administration of it, is in good shape.

We will deliver on the Tax Avoidance Task Force outcomes, reporting regularly to the community and government. We need to continue our efforts internationally to reform tax administrations and effect multilateral compliance action.


Risk 5: We fail to adequately invest in and manage our organisational capability to deliver on the commitments to government and our transformation

Cultural change is at the heart of the ATO’s transformation and aims to improve the client and staff experience. We have made progress, but we are yet to realise all-encompassing change. Feedback internally and externally shows positive change, but there is work still to do.

We are focused on embedding cultural change, so that client focus, service ethic, sensible risk management and outcome orientation are the norm and reflected in everything we do.

We need to have a concerted and persistent effort to achieve the desired change.

We use a mix of employment and contract arrangements to achieve our business outcomes. This is increasingly so in the context of caps on average staffing levels, where there are restrictions to employment of permanent APS employees.

Following a period of significant workforce change, with reductions in numbers, restricted recruitment and shifts in classification profiles, there is pressure on our organisational capability. Workforce strategies through the Australian Public Service Commission, such as the Unlocking Potential strategy, also shape the nature of our workforce and our activities.

We need to ensure we have the people (including those in leadership roles) with the necessary expertise, professionalism and cultural fit. This applies for our employees, as well as our contracted service providers.

Risk 6: Our information and communications technology (ICT) systems fail to perform consistently to the standard required

Our ICT systems need to be able to: > handle the demands of new online services and the integrated nature of whole-of-government technologies > fend off cyber attacks > protect data and information.

Our foundation systems and IT infrastructure were replaced and upgraded through the Change Program. Since then, we have focused on delivering better online tools and more recently have released products and services to significantly enhance the client experience – like the ATO app, myTax and ato.gov.au. As the community embraces new and emerging technologies and communication channels, the demands for security, convenience, and 24/7 performance of our systems mount.

We need to ensure the stability of the Tax Agent Portal, as well as a positive experience with the expanded myTax and ATO online services, and a successful transition to the new practitioner lodgment service through practice management software.

With the evolution of technology for government services, greater interdependencies, new options for cloud services, and new channels for our services, the planning and governance required is more sophisticated, streamlined and integrated.

Advances in technology provide opportunities for us to provide a better client experience, but there are challenges in meeting community expectations for data security and privacy, and in protecting the integrity of the system.

As we continue to expand connectivity to systems and institutions – through open-data strategies and connectivity to banking, mobile devices and cloud solutions – we must secure, manage and use data, information and intelligence appropriately.

There are advanced, persistent, electronic threats and attacks (including hacking, malicious code and denial of service) that could potentially compromise performance, confidentiality, integrity and/or availability of ATO information.


Risk 7: We fail to influence key APS strategies for services to clients and shared services to other agencies

Whole-of-government and whole-of-APS agendas are forging ahead in both service provision to the community (such as through myGov), and shared services as part of the contestability program run by Department of Finance.

The ATO must participate and influence the agenda at a whole-of-government and whole-of-APS level to ensure our own investments and efforts are not in vain, and that we keep our focus on our core business.

In terms of whole-of-government services to the community, we need to work with Department of Human Services to ensure a positive experience with services such as myTax, voice authentication, Single Touch Payroll and the Australian Business Register (ABR) link-up to myGov.

We also need to work with the Digital Transformation Office to ensure we leverage opportunities for progressing our products and services, and take advantage of progress and efficiencies across the APS.

In the shared services arena, we have been selected as a corporate services shared services hub. At this early stage, it is important that we build relationships with our potential clients to ensure they have a positive experience and that our services are effective, efficient and help refine our own internal service offer.


We undertake a broad range of activities, and our people collectively have a vast range of skills, experience and expertise (from customer service, accounting, and information technology to auditing, marketing and law), helping us to deliver for the government and the community.

Leadership

Leaders in the ATO are committed to developing capability and leading by example. We are accountable for our performance and we empower staff to reach their potential. Our Leadership strategy outlines how we will make changes in our leadership approach, defining our new culture and transforming the workforce.

In 2016, two senior executive positions were created to give greater strategic oversight and integration of our information technology, corporate and enabling services:

> The Chief Information Officer (CIO) role drives the implementation and promotion of a services engagement model involving change in practices, approach and culture. Strategic focus areas include end-to-end digital service delivery and working environment; insight and intelligence; and anticipating and responding to the expectations of business and community.

> The Chief Operating Officer (COO) role gives strength and integration in our corporate positioning, governance, stakeholder management, whole-of-government representation, emerging shared service provider requirements, culture, people and resource management. All of these support our ability to deliver an improved client and staff experience.

The four Commissioners, along with the COO and CIO, form the core ATO Executive team. Details on our organisational structure are available on ato.gov.au

People

Our Workforce plan and Culture strategy outline how we are managing our workforce and desired future culture, and systematically achieving change in the ATO. We must focus on providing an easier, contemporary, and more responsive way of doing business. We encourage staff to be inclusive, and we support this through our Diversity and inclusion plan 2015–17 and Reconciliation action plan 2014–17.

Staff will require a base level of digital skills in order to adapt to new and emerging technologies. We are commissioning research into staff digital competency models and best practices, and to create a digital capability baseline to help shape organisation-wide strategies and plans.

To ensure we are capable of meeting future challenges, we will critically assess our recruitment practices to ensure employees meet current needs and equip us with a professional capability ready to meet future requirements. The future ATO employee will:

> be technologically savvy, taking a whole-of-systems approach and capable of working across multiple functions > be committed to high performance and able to coach other employees > maintain a commitment to lifelong learning, innovation and embracing change.

To achieve greater workforce efficiencies, we are: > exploring opportunities to use different workforce types and mixes to ensure we adapt to changing or

emerging priorities > leveraging technology and innovative practices > using data and intelligence to anticipate customer requirements > integrating our workforce supply, technology and property so we can meet both immediate and longer-term

workforce requirements.

Capability04


Demographics

Location

We have offices across all six states and the ACT. Our staff are also collocated in DHS and myGov shopfronts across Australia.

Systems and data

We continue to transform and simplify our ICT environment to support streamlined and seamless services. We are driving the development of a more agile and skilled workforce, capable of delivering applications to support the community and the organisation.

Smarter use of data and information is one of the foundation elements of our ongoing Reinventing the ATO program. Our data, analytics and intelligence capabilities are helping us better use large data holdings to improve the quality of decision making and deliver to clients a more personalised experience of the tax and superannuation systems.

Around

20,750Employees

77%full-time

11%part-time

12%casual

85%ongoing

12%casual

3%non-

ongoing

1.7%Indigenous Australians

22%from a

non-English speaking

background

3.1%with

disability

NSW 31%

QLD 16%

TAS 3%

ACT 12%

VIC 24%

WA 5%

SA 9%


We have a highly skilled workforce using increasingly advanced data and analytical tools. The Reinventing the ATO program aims to create the right environment to attract and retain the right people, providing a contemporary workforce capable of meeting clients’ increasing service expectations and identifying risks as they emerge. Our new information technology workforce and people strategy will enable a more focused approach, ensuring we have the right people in the right place with the right skills, while predicting future talent demands to support our business.

Shared and common services

The government is continuing to implement targeted initiatives that challenge the way the public sector undertakes its policy and service delivery roles.

The Shared and Common Services Programme is aligned with the push towards smaller government and the Efficiency Through Contestability Programme. In a landscape of constrained budgets and an increasingly dynamic and complex policy environment, the target is to cut waste and duplication, streamline delivery models, reduce operating costs, and make government more efficient and business-like.

The ATO has been selected as a provider of corporate services and is working to establish a shared services hub. We will take care in balancing our shared services offering and ensure we are adding value at a whole-of-government level while protecting our core business outcomes.


The ATO has multiple programs which are funded separately in the Portfolio Budget Statement (PBS).

Australian Taxation Office

The ATO uses the following outcomes framework to map inputs, outputs and outcomes to achieving our purpose.

Performance05

OUTCOME – the overall effect of our activities in achieving what the government has funded us to deliver

Confidence in the administration of Australia’s tax and superannuation systems through helping people understand their rights and obligations, improving ease of compliance and access to benefits, and managing non-compliance with the law.

Information and assistance

services

Obligations and entitlements processing

Revenue assurance

Securing retirement

income

Business, partner, and government interactions

Corporate and enabling services

OUTPUTS – the activities we do and how we deliver them for tax, superannuation and the ABR

IMPACT MEASURES – how we will demonstrate achieving our outcome

Productivity

Decrease in administrative costs

Revenue

Increase in clients paying the right amount of tax at

the right time

Integrity

Increase in trust and confidence

Create a client focused and future oriented workforce

Willing participation

Increase in clients meeting their obligations

Improve the experience for clients

INPUTS – the resources we use effectively, efficiently and economically

People Processes Systems Assets


Intended results and performance criteria

Integrity

Performance criteria 2016–17 target

An increase in trust and confidence by providing clients with greater certainty, engaging early and being professional, respectful and fair.

Measured by:

Satisfaction – Community satisfaction with ATO performance Greater than or equal to 2015–16

Fairness – Perceptions of fairness in disputes Greater than or equal to 2015–16

Create a client focused and future oriented workforce by focusing on desired cultural traits and encouraging engagement to deliver improved services.

Measured by:

Culture – Level of employee engagement Greater than or equal to 2015–16

Willing participation


Improve the client experience by providing interactions and services which are easy to access, minimising red tape and reducing compliance costs.

Measured by:

Ease – People surveyed agree the ATO makes it easy to access services and information

Greater than or equal to 2015–16

Digital – Proportion of inbound interactions received digitally 85%

Compliance cost – Adjusted average cost of managing tax affairs Maintain the 2014–15 AWOTE* adjusted income year figures of $293 (average) and $131.50 (median) respectively.

Increase in clients meeting their obligations by ensuring correct and timely registrations, lodgments, reporting and payments.

Measured by:

Registration – Proportion of companies and individuals registered in the system The ATO aims to ensure that all entities that are required to participate in the tax and superannuation system are registered on the ATO client register.

Lodgment – Proportion of activity statements and income tax returns lodged on time

Activity statements 78.7% Tax returns 83.4% of the previous year

Payment – Proportion of liabilities paid on time by value Overall 85%

Superannuation – Adjusted employer superannuation contributions as a proportion of adjusted salary and wages

9.5%

Correct reporting – Tax gap as a proportion of revenue Reduce the gap to a level as low as practicable given the nature and complexity of the law and the resources available. Note: prior to 2016–17, this measure referred only to the GST gap.

*AWOTE – average weekly ordinary time earnings (for full-time adults)


Revenue


Increase in clients paying the right amount of tax at the right time by undertaking activities to ensure appropriate collection of revenue for government to support and fund services for the community.

Measured by:

Tax assured – Proportion of the tax base where the ATO has justified trust that it is accurate

Under development

Audit yield – Cash collected from direct compliance activities $6.2 billion

Total revenue effects – Tax revenue from all compliance activities Under development

Debt – Ratio of collectable debt to net tax collections Below 5.5%

Expected revenue – Proportion of revenue collected compared with forecast +/–2.5%

Productivity


Decrease administrative costs by improving efficiency, productivity and performance.

Measured by:

Budget – ATO manages its operating budget to balance +/–0.6% (+/–$20m)

Cost of collection – Cost to collect $100 Consistent with trend

Expenditure:

> Tax administration expenditure as % of gross domestic product > Non-tax expenditure as % of total expenditure

0.2%

Consistent with trend

Cost per transaction Under development


Australian Business Register

The Commissioner of Taxation is also the Registrar of the Australian Business Register (ABR). While the program is delivered by ATO staff, the Registrar has separate and distinct responsibilities as outlined in section 28 of the A New Tax System (Australian Business Number) Act 1999, and the ABR program receives separate funding.

The ABR program encompasses: > the Australian Business Register which is a comprehensive national business dataset > Standard Business Reporting (SBR) which defines a common language for business information and standards for

electronic information sharing – it is used in business record-keeping software to support running the business and reduce the burden of reporting to government

> secure authentication options, giving business easy-to-use access to a range of services.

Purpose

To enhance business productivity by: > reducing the administrative cost to businesses in their dealings with other businesses and in complying with

government regulation > influencing government policy development and implementation, through advocating the use of whole-of-

government services, technologies and processes to minimise the administrative impact on business > encouraging the broader use of the national business register information, and the ABN as the key identifier

for business.

Priorities

The priorities of the ABR are: > reducing costs and improving services in the broader government sector through the information capabilities of the

Australian Business Register > facilitating the development and adoption of natural-based systems to reduce client effort and improve community

outcomes.


The aim in advocating the use of the ABR’s whole-of-government services, technologies and processes is to minimise the impact on business of complying with government regulation. Improvements in business productivity will be gained through the broader adoption and use of the complete and single source of business information and consistent information exchange standards.


Increased use of the ABR as the national business dataset by government agencies and the community

50% increase

Increase in the number of government agencies using the ABR database as their own

Three additional government agencies

Increase in the number of government agencies implementing and using SBR Three additional government agencies

Australian residents’ ABR registrations finalised in 20 business days 93%

Reduction in the unintended administrative costs to business of complying with government regulation

Estimated annual savings to business through the use of technologies enabled by SBR: $1.39 billion


Tax Practitioners Board

The Tax Practitioners Board (TPB) has general administration of the Tax Agent Services Act 2009 and is responsible for the regulation of tax practitioners. These include tax agents, business activity statement (BAS) agents and tax advisers.

The Board is responsible for the strategic direction and performance of the TPB, and the Secretary is responsible for managing TPB operations and resources.

Purpose

The TPB’s purpose is to regulate tax practitioners in a fair, consistent and practical way under the Tax Agent Services Act 2009 to protect consumers, thereby strengthening the integrity of the tax practitioner profession.

More information

Further details about the TPB, including its activities and intended results, are available in its 2016–17 corporate plan, available at tpb.gov.au

Australian Charities and Not-for-profits Commission

The Australian Charities and Not-for-profits Commission (ACNC) is the independent regulator of charities at the Commonwealth level established by the Australian Charities and Not-for-profits Commission Act 2012. It is an independent statutory office, separate from the ATO and headed by its own Commissioner. The formal relationship of the ACNC with the ATO is outlined in various memorandums of understanding which set out the services to be provided by the ATO and the costs involved.

Purpose

The ACNC’s purpose is to: > maintain, protect and enhance public trust and confidence in the Australian not-for-profit sector > support and sustain a robust, vibrant, independent and innovative Australian not-for-profit sector > promote the reduction of unnecessary regulatory obligations on the Australian not-for-profit sector.

More information

Further details about the ACNC, including its activities and intended results, are available in its 2016–17 corporate plan, available at acnc.gov.au


http://www.tpb.gov.au/

http://www.acnc.gov.au/

Administered programs

Purpose

The ATO contributes to the economic and social wellbeing of Australians through governing a range of programs that result in transfers and benefits back to the community.

Activities

We administer a range of payments and transfers on behalf of the Australian Government, including incentives and rebates delivered through the tax and superannuation systems. Administered programs may be administered by the ATO with policy and delivery assistance from other Commonwealth agencies, or directly through the tax and superannuation systems.


We contribute to the social and economic benefit of Australians by delivering the benefits and credits they are entitled to.


Australian Screen Production Incentive

Number of tax offsets processed The ATO aims to administer the program in accordance with the law

Value of tax offsets processed

Number of tax offsets issued compared to the number of tax offset entitlements

Value of tax offsets issued compared to the value of tax offset entitlements

Exploration Development Incentive

Number of applications made by mining exploration companies The ATO aims to administer the program in accordance with the law

Value of exploration expenditure sought to be converted into credits before ATO applies statutory cap on total credits

Modulation factor provided by the ATO in sufficient time to allow allocation of capped exploration credits to shareholders

By 31 December 2016

Fuel Tax Credits Scheme

Number of registered participants The ATO aims to administer the scheme in accordance with the law

Value of claims

Proportion of payments processed within service standard timeframes 85%

National Rental Affordability Scheme

Number of tax offsets processed 26,000

Value of tax offsets processed $185 million

Ratio of claims made through the ATO compared to the Department of Social Services

3:1

Product Stewardship for Oil

Number of claims processed The ATO aims to administer the program in accordance with the law

Number of participants registered

Value of payments processed

Value of revenue collected




Research and Development Tax Incentive

Number of claims processed for 40% non-refundable research and development tax offset claimants

The ATO aims to administer this program in accordance with the law

Number of claims processed for 45% refundable research and development tax offset claimants

Value of claims processed for 40% non-refundable research and development tax offset claimants

Value of claims processed for 45% refundable research and development tax offset claimants

Proportion of offsets processed within service standard timeframes

Low Income Superannuation Contribution

Number of beneficiaries of entitlements determined The ATO aims to administer the program in accordance with the law

Value of entitlements determined and paid

Proportion of original contributions paid within 60 days 97%

Private Health Insurance Rebate

Number of claims processed Approximate number of tax returns with private health insurance details: 8.2 million

Value of rebates processed

Proportion of private health insurance rebates claimed through the tax system

Liability imposed on lodging eligible individuals

Superannuation Co-contribution Scheme

Number of beneficiaries of entitlements determined The ATO aims to administer the scheme in accordance with the law

Value of entitlements determined and paid

Proportion of original co-contributions paid within 60 days 97%

Superannuation Guarantee Scheme

Number of superannuation guarantee complaints leading to a superannuation liability being raised and those leading to no result

The ATO aims to administer the scheme in accordance with the law

Number of employees who have had superannuation guarantee entitlements raised as a result of ATO compliance activities and voluntary disclosures

Number of employers whose records are checked and the number leading to a superannuation liability being raised

Proportion of employers for whom superannuation guarantee liabilities were raised by the ATO

Value of superannuation guarantee charge:

> raised (including penalties and interest) > collected

$702 million raised, $376 million collected (annually)

Value of superannuation guarantee entitlements distributed to individuals or superannuation funds

$380 million

Value of superannuation guarantee debt on hand and the amount of superannuation guarantee debt irrecoverable at law or uneconomical to pursue

$1.3 billion on hand and $219 million written off



Targeted Assistance Through the Taxation system

Number of interest payments processed The ATO aims to administer the program in accordance with the law

Value of interest payments processed

Proportion of unclaimed superannuation accounts where interest is paid to the account owner compared to total accounts transferred

Interest on Overpayment and Early Payments of Tax

Number of clients entitled to credit interest due to processing performance The ATO aims to administer the program in accordance with the law

Value of credit interest applied to client accounts due to processing performance

Proportion of credit interest paid due to processing performance compared to all credit interest paid

Bad and Doubtful Debts

Provision for bad and doubtful debts as a proportion of total tax receivables Below 35%

Other administered

Cleaner Fuels Grant Scheme

Number of claims processed The ATO aims to administer the scheme in accordance with the law

Number of participants registered

Value of payments processed


Seafarer Tax Offset

Number of tax offsets processed The ATO aims to administer the program in accordance with the law

Value of tax offsets processed

Survey all taxpayers who are eligible to claim the seafarers tax offset 100%

First Home Saver Accounts Scheme

Proportion of government contributions paid to eligible account holders within 60 days

92%

Number of government contributions paid The ATO aims to administer the scheme in accordance with the law

Value of government contributions paid

Value of account balances


Contacts

Mail

Director, Corporate Planning ATO Corporate Australian Taxation Office PO Box 900 Civic Square ACT 2608

Phone (02) 6216 1111 Email [email protected] Website ato.gov.au

Find us

twitter.com/ato_gov_au facebook.com/ato.gov.au youtube.com/AusTaxOffice

Copyright

© Australian Taxation Office for the Commonwealth of Australia, 2016

You are free to copy, adapt, modify, transmit and distribute this material as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).

Published NAT 7769–10.2016 JS37088

Australian Taxation Office, Canberra

August 2016

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