Output expense 5

Managment 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 2007 (GST-exclusive) $000

Revenue	Expenses	Net surplus/(deficit)
89,922	86,694	3,228

For all management of debt and outstanding returns outputs

Performance measure

	Budget	Actual
We will ensure that at least 90% of all work is actioned appropriately and in accordance with the law.	90%	97.5%

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^[21]
We will ensure that:
1.05 to 1.16 million outstanding returns are filed or brought to completion by year-end	1.05-1.16 million	1.15 million
at least 85% of all returns that were not filed by the due date are filed or brought to completion within 12 months.	85%	82.1%

²¹ These measures, together with the on-time filing measure in output 2.1 provide a consolidated picture of our compliance performance.

Output 5.2 Overdue debt

Description

This output covers all activities associated with collecting overdue debt (excluding child support debt). It involves taking appropriate follow-up action when customers do not meet their obligations, including providing them with assistance on how they can meet their tax obligations.

Performance measures

	Budget	Actual
Quality^[22]
We will resolve:
450,000 to 500,000 debt cases by year-end	450,000-500,000	505,330
at least 85% of all new debt cases within 12 months of the due date for payment.	85%	87.1%

²² These measures, together with new debt and on-time paying measures in output 2.1 provide a consolidated picture of our compliance performance.

Output 5.3 Child support debt management

Description

This output involves all activities associated with the recovery of overdue child support payments. It includes taking appropriate enforcement action against non-compliers within the child support law.

Performance measures

	Budget	Actual
Quantity
We will resolve at least 70% of paying parent debt cases within 12 months of the due date for payment (excluding uncollectable debt cases).	70%	72.0%
We will collect at least 90% of the value of all child support assessments due from the start of the child support scheme in 1992 through to 31 March 2006 (excluding cases we manage on behalf of overseas agencies and uncollectable debt cases).	90%	89.8%
We will limit the growth of total child support debt to less than 11.5% (excluding penalties, debt we manage on behalf of overseas agencies and uncollectable debt cases).	<11.5%	11.8%

Output statement: Management of debt and outstanding returns

for the year ended 30 June 2007
2005/06 Actual $000		2006/07 Actual $000	2006/07 Main Estimates $000	2006/07 Final voted $000
	Revenue
68,095	Crown	88,053	102,052	86,028
1,459	Other	1,869	3,564	3,846
69,554	Total Revenue	89,922	105,616	89,874
	Expenses
71,275	Annual appropriations	86,694	105,616	89,874
-	Other appropriations	-	-	-
71,275	Total expenses	86,694	105,616	89,874
(1,721)	Net surplus/(deficit)	3,228	-	-
25,096	Output 5.1 Outstanding returns	28,531	26,719	22,737
46,179	Output 5.2 Overdue debt	32,384	48,138	40,963
-	Output 5.3 Debt management - child support	25,779	30,759	26,174
71,275	Output expense cost	86,694	105,616	89,874