Output expense 4

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

Financial performance for the year ended 30 June 2008 (GST-exclusive) $000
Revenue	Expenses	Net surplus/(deficit)
81,750	82,192	(442)

For all management of debt and outstanding returns outputs

Performance measures
	2006-07 Actual	2007-08 Target	2007-08 Actual
We will ensure that at least 95% of all work is actioned appropriately and in accordance with our quality standards.	97.5%	95%	97.9%

Output 4.1 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
	2006-07 Actual	2007-08 Target	2007-08 Actual
Quantity
We will ensure that:
1.09 to 1.19 million outstanding returns are filed or brought to completion by year-end	1.15 million	1.09 - 1.19 million	1.31 million
at least 85% of all returns that were not filed by the due date are filed or brought to completion within 12 months.	82.1%	85%	80.2%1^[16]

¹⁶ We made a business decision to divert more resources to telephone services. This meant that fewer resources were available to make the performance improvement required to acheive the standard.

Output 4.2 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
	2006-07 Actual	2007-08 Target	2007-08 Actual
Quality
We will resolve:
475,000 to 525,000 debt cases by year-end	505,330	475,000-525,000	544,706
at least 85% of all new debt cases within 12 months of the due date for payment.	87.1%	85%	89.2%

Output 4.3 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
	2006-07 Actual	2007-08 Target	2007-08 Actual
Quantity
We will resolve at least 70% of paying parent debt cases within 12 months of the due date for payment (excluding cases we manage on behalf of overseas agencies and uncollectable debt cases).	72.0%	70%	74.4%
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 2007 (excluding cases we manage on behalf of overseas agencies and uncollectable debt cases).	89.8%	90%	89.7%
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).	11.8%	<11.5%	9.0%

Output statement: Management of debt and outstanding returns

for the year ended 30 June 2008
2006-07 Actual $000		2007-08 Actual $000	2007-08 Main Estimates $000	2007-08 Final voted $000
	Revenue
88,053	Crown	80,158	93,071	80,158
1,869	Other	1,592	3,939	3,939
89,922	Total revenue	81,750	97,010	84,097
	Expenses
86,694	Annual appropriations	82,192	97,010	84,097
-	Other appropriations	-	-	-
86,694	Total expenses	82,192	97,010	84,097
3,228	Net surplus/(deficit)	(442)	-	-