Output 3.1 Revenue Management

Overview

The directorate administered taxation legislation in the ACT and a number of assistance schemes. The directorate:

  • provided policy advice on ACT taxation matters and the development and amendment of the Territory’s taxation legislation;
  • was responsible for the Objections and Appeals Unit, which reviewed decisions involving ACT taxes, and deals with any subsequent appeals;
  • administered rates, land tax, the fire and emergency services levy, land rent, deferred duty, city centre marketing and improvements levy, payroll tax and other return taxes, and undertook a debt recovery function;
  • administered and provided advice on conveyance duty and financial assistance schemes;
  • administered some concession schemes on behalf of the Territory;
  • maintained and enforced compliance with all taxes, grants and concessions administered by the ACT Revenue Office;
  • provided financial management reporting and web management services;
  • administered the Home Loan Portfolio and the Mortgage Relief Fund; and
  • provided a range or valuation services to Government including for statutory rating purposes, lease variation determinations and administrative reviews as well as expert testimony before the ACT Civil and Administrative Tribunal and Courts.

Highlights

Against this output in 2015-16 the directorate:

  • collected more than $1.5 billion in taxation revenue;
  • undertook compliance activity which resulted in 1,128 assessments issued for $18 million in revenue;
  • provided $16.6 million in home buyer and pensioner duty concessions and $15 million in First Home Owner Grants;
  • implemented the Government’s Tax Reform initiatives, including:
    • amended general rates;
    • amended conveyance duty rates and thresholds;
    • reduced duties on general and life insurances; and
    • extension of the Pensioner Duty Concession Scheme for a further year;
  • developed amendments to the following legislation:
    • Duties Act 1999 to introduce a concession for deceased estates in partial conformity with a will, and to abolish 95 per cent duty relief for corporate reconstructions;
    • First Home Owner Grant Act 2000 to allow the Minister to determine the amount of the grant by disallowable instrument, and to clarify the definition for ‘new home’ in relation to short-term occupation;
    • Land Rent Act 2008 to make the Land Rent Scheme available to eligible former home owners exercising their first right of refusal who have elected to rebuild on their former block under the Loose Fill Asbestos Insulation Eradication Scheme, and to improve the application process for land rent;
    • Land Tax Act 2004 to improve the application process for the corporate builder exemption, and to allow objections to land tax interest;
    • Payroll Tax Act 2011 to clarify the owner-driver exemption;
    • Rates Act 2004 to establish a new methodology for determining the Average Unimproved Value of Canberra Airport land, and to allow objections to rates interest;
    • Taxation Administration Act 1999 to exclude certain types of organisation from charitable tax exemptions for payroll tax, rates and duty, establish a process of obtaining Beneficial Organisation Determinations, limit the scope of reassessments and refunds for excluded organisations, and to consolidate the sale of land process for rates and land tax; and
    • Taxation Administration Act 1999 to harmonise the definition of charitable organisations across the Territory’s taxation acts, exclude certain types of organisations from charitable tax exemptions for payroll tax, rates and duty, establish a process of obtaining Beneficial Organisation Determinations, limit the scope of reassessments and refunds for excluded organisations, and consolidate the sale of land process for rates and land tax.

The directorate met one of the four accountability targets for this output.  Of the other three:

  • (a) Debt Management – level of overdue debt as a percentage of tax revenue was exceeded by 20 per cent due largely to an increase in debt ratios for general rates;
  • (b) Internal reviews of Objections completed within 6 months, was exceeded by 17 per cent, with only two out of 239 objections not completed within six months, all were completed within 12 months; and
  • (d) Compliance revenue per inspector was exceeded by 129 per cent due to exceptional case outcomes in payroll tax and better than expected results in land tax.

Future Direction

In 2016-17 the directorate will:

  • implement the Government’s taxation policy initiatives; and
  • continue with its transformation program which involves the replacement of its IT platform.

For further information contact:

Kim Salisbury
Director
Revenue Management Division
+61 2 6207 0010
Kim.Salisbury@act.gov.au
www.revenue.act.gov.au

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