Schedule of Administered Comprehensive Income

Australian Taxation Office ADMINISTERED SCHEDULE OF COMPREHENSIVE INCOME for the period ended 30 June 2016

 

Note

2016
$'m

2015
$'m

Original Budget
$'m

NET COST OF SERVICES

Expenses

Subsidies

2.1A

9,092

9,472

9,291

Personal Benefits

2.1B

1,213

1,164

1,125

Impairment on taxation receivables1

3,384

3,485

5,620

Penalty and interest charge remission expenses1

1,150

1,434

2,185

Interest on overpayments

174

222

350

Superannuation guarantee charge

511

344

481

Other expenses

26

7

31

Total expenses

15,550

16,128

19,083

 

Income tax

Revenue

Taxation revenue

Income tax1

2.2A

265,430

257,997

279,707

Indirect tax1

2.2B

83,441

81,403

86,540

Other taxes1

2.2C

960

912

1,031

Total taxation revenue

349,831

340,312

367,278

 

Non-taxation revenue

Other revenue

438

404

631

Total non-taxation revenue

438

404

631

Total revenue

350,269

340,716

367,909

 

 

 

 

Net contribution by services

334,719

324,588

348,826

 

 

 

 

Surplus on continuing operations

334,719

324,588

348,826

  1. Prior year adjustments have been made to these amounts. Please refer to Overview.

The above statement should be read in conjunction with the accompanying notes

Australian Taxation Office ADMINISTERED SCHEDULE OF COMPREHENSIVE INCOME for the period ended 30 June 2016

Budget Variances Commentary: Administered Schedule of Comprehensive Income

Affected line items

Explanation of major variances

Subsidies expenses

The actuals are lower than budget primarily due to lower than expected proportion of total diesel consumption eligible for fuel tax credits combined with an overestimation of films expected to be certified for the Producer Tax offset.

Impairment on taxation receivables

The actuals are lower than budget primarily due to a reduction in the value of bad and doubtful debts (B&DD) of large cases (greater than $1m).

Penalty and interest charge remission expenses

The actuals are lower than budget primarily due to a restatement to adhere to the ATO’s settlement policy (not known at the estimation of the original 2015-16 budget).

Interest on overpayments

The actuals are lower than budget primarily due to the budget estimate being based on a three year average actual Interest on overpayment (IOP) expense. During 2015-16 the ATO has reduced the time taken to resolve disputes as well as the timeframe for holding large credits in the provision.

Income tax

The actuals are lower than budget primarily due to:

  • lower Company tax driven by weaker profitability and lower than expected capital gains;

  • lower Individuals tax driven by lower than expected salary and wages growth; and

  • lower Superannuation tax driven by lower than expected net capital gains, higher foreign exchange losses and dividend franking credits.

Indirect tax

The actuals are lower than budget primarily due to lower than expected Excise duty due to tobacco production moving offshore.

Other Revenue

The actuals are lower than budget primarily due to unclaimed superannuation monies (USM) amounts raised from the April statements being lower than expected due to the volatility of the legislated increase to the small lost member threshold. In addition, USM claims were higher than expected due to ATO initiatives.

The above statement should be read in conjunction with the accompanying notes