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Taxation output

This output reports on the delivery and administration of simple, efficient and equitable revenue management services for the State's main taxes and grant and subsidy schemes. The Office of State Revenue (OSR) delivers the taxation output.

It delivers and oversees State taxation by collecting revenue (comprising duties, pay-roll tax, land tax, Community Ambulance Cover levy and gambling taxes), including revenue investigation and revenue debt recovery. Key clients include taxpayers, grant and subsidy recipients, and their agents and professional advisers.

Vision

To be the first choice as innovative revenue managers for the Government and the community.

Mission

To manage revenue, through our committed and professional people, to:

link the Government and the community
support the Government's social and fiscal responsibilities
help members of the community meet their obligations and receive their entitlements.

Highlights

Rolled out Release 1 of the new information technology platform - the Revenue Management System (RMS). This online system delivers enterprise-wide best practice revenue management capability to manage Queensland's growing revenue base.
Developed the Revenue Base Management (RBM) system that uses information from our RMS to build a powerful information warehouse to better manage our revenue base.
Implemented the abolition of lease duty and credit business duty from 1 January 2006.
Implemented the Government's 2005-06 land tax initiatives to help maintain Queensland's land tax competitiveness.

Structure

Under Treasurer, Gerard Bradley
- Deputy Under Treasurer, David Ford
  - Acting Executive Director, Allan Mason
    - Acting Deputy Commissioner, Tony Kulpa
      - Acting Director, Grants and Subsidies, Simon McKee
      - Acting Director, Taxes Specialist Services, Rosemarie Gastaldello
      - Acting Director, Business Development, John Low
    - Deputy Commissioner, Martin Schwede
      - Acting Director, Corporate Capability, Liam Cooke
      - Acting Director, Information Technology, Joseph Li
    - Deputy Commissioner, John Corlis
      - Director, Client Management, Gary Gibbards
      - Director, Taxes Investigations, Geoff Jones
    - Director, Policy and Legislation, Melinda Watson

Output performance highlights

Output performance highlights
Measure	Target	Actual
Quantity
Amount of revenue and grants administered	^[1] $6.7B	^[1] $7.3B
Number of amendment provisions including subordinate legislation developed	5	7
Number of First Home Owner Grant (FHOG) applications	22,600	26,714
Number of fuel subsidy payments	24,200	22,638
Quality
Client satisfaction with service provided	70%	74%
Legislative amendment program and revenue policy advice within service standards	90%	96%
Timeliness
FHOG applications processed within service standards	95%	98%
Percentage of investigations performed within service standards	90%	96%
Legislative program and deliverables within deadlines	90%	100%
Payment and investigation of fuel subsidy claims within service standards	95%	91%
Policy advice, briefings and Ministerial correspondence within deadlines	90%	^[2] 70%
Revenue collected within service standards	95%	^[3] 88%
Cost
Total revenue administered per dollar expended	$180	$198

1. Includes Community Ambulance Cover, gambling taxes, First Home Owner Grant, fuel subsidy, pay-roll tax, land tax and duties.

2. This figure reflects some anomalies in the process regarding extension deadlines (now resolved) and the need to defer issues that may have been affected by announcements within the 2006-07 Budget and other revenue initiatives.

3. The continued development and implementation of the Revenue Management System, together with a record number of registrations from 1 July 2005, contributed to the lower percentage of pay-roll tax work processed within service standards.

Highlights

Highlights for the taxation output
Strategic business priority	Highlights	The year ahead
Modernise administration through the continued implementation of the Taxation Administration Act 2001, new technology systems and new business processes.	Implemented Release 1 of the new Revenue Management System (RMS) that enabled pay-roll tax clients to lodge returns and pay tax electronically. Completed conceptual design and commenced development on the RMS for duties clients.	The RMS will be further developed and implemented to provide faster and improved service to our duties clients through the introduction of e-lodgment and e-payment facilities for self-assessors.
Manage revenue within agreed service standards by continually reviewing use of resources, refining systems and operating procedures against benchmarks and other best practice measures.	Reviewed the OSR website and started a redesign to improve the service and information we supply to clients. Extended the service of Client Contact Centre (CCC) to improve the consistency and type of information to callers. Introduced a client support program for duties self-assessors.	Complete the revamp of the OSR website and update content to improve service standards. Continue to expand CCC services to provide information on additional revenue lines. Expand the client support program across the organisation to include other tax streams such as pay-roll tax.
Proactively identify, investigate and create the capability for efficient and effective revenue management for the State Government.	Develop the Revenue Base Management (RBM) system to better manage the revenue base with improved revenue forecasting, client profiling and risk management (starting with pay-roll tax).	Apply the RBM to pay-roll tax, to provide targeted education to clients and improve compliance.
Provide responsive and ongoing legislation and revenue policy advice services to Government.	Continued the reform commitments made under the Intergovernmental Agreement on the Reform of Commonwealth-State Financial Relations (IGA) with the abolition of lease duty and credit business duty from 1 January 2006. Implemented the Government's 2005-06 land tax initiatives including tax rate reductions, increased tax-free thresholds and fewer and broader land value bands.	Hire duty and unquoted marketable securities duty will be abolished from 1 January 2007. Implement State Budget taxation initiatives such as raising the individual land tax and pay-roll tax thresholds. Continue the progressive abolition of IGA taxes. The savings to Queenslanders from the progressive abolitions of the IGA taxes over the period 2005-06 to 2011-12 will be $4.5 billion.

Key issues facing the output

Continuing the development of the online Revenue Management System for duties.
Continuing the commitment made under the IGA reforms to abolish certain duties.
Continuing to manage revenue in sustained periods of high levels of economic activity.

Cost of revenue managed versus revenue per OSR employee

Analysis: The cost per OSR employee to manage revenue has reduced by 28 per cent over the past five years.

Revenue under management

Analysis: Pay-roll tax and duties comprised 72 per cent of the total revenue under management.

Note: Other tax: The Office of State Revenue commenced collecting gambling taxes from 1 July 2002 and the Community Ambulance Cover levy from 1 July 2003.

Strategic business priorities

Strategic business priority

Modernise administration through the continued implementation of the Taxation Administration Act 2001, new technology systems and new business processes.

Delivered e-lodgment benefits to pay-roll tax clients

In 2005-06, the Office of State Revenue (OSR) implemented Release 1 of their new information technology platform - the Revenue Management System (RMS), allowing pay-roll tax clients to lodge returns and pay their tax electronically. RMS will be extended in 2006-07 to duties clients to enable self-lodgment, with online tools to help assess the correct amount of duty.
Redesigned the OSR website to better meet user needs

The architecture of the OSR website was redesigned to help site users quickly find the information and forms they need. In 2006-07, a full content review of the site will be conducted.

Strategic business priority

Manage revenue within agreed service standards by continually reviewing use of resources, refining systems and operating procedures against benchmarks and other best practice measures.

Made business improvements through education program

The client education program for duties self assessors improved compliance by helping clients address and resolve common issues and reduce errors. The client education program will be expanded in 2006-07.
Expanded contact centre to improve support service

The scope of the Client Contact Centre (CCC) was expanded to include pay-roll tax, improving support for employers conducting the new self assessment process and e-lodgment for annual returns. In early 2006, the scope of the CCC was further expanded to cover the First Home Owner Grant and Fuel Subsidy Scheme enquiries. In 2006-07, the CCC will also handle land tax enquiries.

Strategic business priority

Proactively identify, investigate and create the capability for efficient and effective revenue management for the State Government.

Developed a new revenue system to better manage compliance and client needs

The Revenue Base Management (RBM) system was developed to improve revenue forecasting, client profiling and risk management for pay-roll tax. RBM supports compliance by providing both the information and capability to generate communication and education programs tailored to client needs. In 2006-07, RBM will be implemented for pay-roll tax.

Strategic business priority

Provide responsive and ongoing legislation and revenue policy advice services to Government.

Continued taxation reforms to deliver savings to Queensland taxpayers

During 2005-06 we continued to implement taxation reforms agreed under the Intergovernmental Agreement on the Reform of Commonwealth-State Financial Relations, with the abolition of lease duty and credit business duty from 1 January 2006. The reforms will continue during 2006-07 with hire duty and unquoted marketable securities duty to be abolished from 1 January 2007. Taking into account all taxes that will be abolished, Queensland taxpayers will save around $4.5 billion over the period 2005-06 to 2011-12.

In the year ahead, we will implement the State Budget taxation initiatives including raising the individual land tax and pay-roll tax thresholds, introducing a first home duty concession for vacant land, increasing the home duty concession to offset increases in duty rates for transactions worth more than $500,000, and strengthening the land-rich duty provisions.
Implemented the Government's 2005-06 land tax initiatives

The Queensland Government's 2005-06 land tax initiatives included changes such as tax rate reductions, increased tax-free thresholds and fewer and broader land value bands. The principal place of residence land tax concessions were also extended to home owners who use part of their home as a place of business.

All taxpayers benefited from the rate reductions and increased thresholds which acknowledged the trend of increasing land values in recent years.

Client Contact Centre answers the call to improve customer service

Client Service Officer Kelly Bosomworth answers calls at the OSR Client Contact Centre.

With a goal of answering 80 per cent of calls in less than 20 seconds, the Office of State Revenue's Client Contact Centre is serious about customer service. The centre was started in 2002 to support the new Duties Act 2001 and the Taxation Administration Act 2001, and answered enquiries relating to the Acts and self assessment.

In 2005-06, the centre expanded to answer pay-roll tax, First Home Owner Grant and Fuel Subsidy Scheme enquiries, with land tax enquiries scheduled for 2006-07. The expansion is in line with the Office of State Revenue's Client Relationship Management strategy, with centre staff providing clients with information and educating them about available resources. Centre staff also collect information through the Revenue Management System to help identify where better service can be provided to clients. The Client Contact Centre can be reached (within Australia) on 1300 300 734 or by email at ClientContactCentre@osr.treasury.qld.gov.au.

Last reviewed 20 November 2007