Output expense 5

Output expense 5 -
Management of debt and outstanding returns

Description

This output expense provides services that contribute to the availability of revenue to fund government programmes. This is achieved by:

• ensuring that taxpayers assess their liabilities when required and they and other customers meet payment obligations (or understand the action they need to take to meet overdue obligations)
• taking appropriate enforcement action where people choose not to comply.

Activities undertaken:

• taking follow-up action where returns are outstanding
• taking follow-up action where payments are overdue.

Financial performance for the year ended 30 June 2006 (GST-exclusive) $000

Revenue $000	Expenses $000	Net surplus/(deficit) $000
69,554	71,275	(1,721)

 

For all management of debt and outstanding returns outputs

Performance measure

	Budget	Actual
Quality
We will action all debt and return collection activity appropriately and in accordance with the law.	100%	95.4%

 

Output 5.1 Outstanding returns

Description

This output involves all activities associated with collecting outstanding returns, including taking appropriate follow-up action against taxpayers who do not file a return.

Performance measures

	Budget	Actual
Quantity
We will ensure that the number of outstanding returns is less than 573,000 by year-end.	573,000	614,65745
Timeliness
We will ensure that at least 80% of all returns that were not filed by the due date are filed or brought to completion within 12 months.	80%	81.5%
45 Although this measure was not achieved, there was an increase in the number of outstanding returns of 5.1% this year, compared to a 13.7% increase in 2004-05.

Output 5.2 Overdue debt

Description

This output involves all activities associated with collecting overdue debt, including taking appropriate follow-up action against those who do not make payments when they are due.

Performance measures

	Budget	Actual
Quantity
We will ensure that the number of debt cases is less than 284,000 by year-end.	284,000	278,100
Timeliness
We will resolve at least 85% of all new debt cases within 12 months of the due date for payment.	85%	87.9%

 

Output statement: Management of debt and outstanding returns
for the year ended 30 June 2006

Actual   2005 $000		Actual   2006 $000	Main Estimates 2006 $000	Final voted 2006 $000
	Revenue
60,249	Crown	68,095	64,445	68,095
1,340	Other	1,459	3,241	3,241
61,589	Total revenue	69,554	67,686	71,336
	Expenses
62,146	Annual appropriations	71,275	67,686	71,336
0	Other appropriations	0	0	0
62,146	Total expenses	71,275	67,686	71,336
(557)	Net surplus/(deficit)	(1,721)	0	0
20,081	Output 5.1 Outstanding returns	25,096	22,040	23,228
42,065	Output 5.2 Overdue debt	46,179	45,646	48,108
62,146	Output expense cost	71,275	67,686	71,336

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