Taxation
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
First choice revenue managers.
Mission
To deliver and administer simple, efficient and equitable revenue management services for State taxes and grants and subsidy schemes.
Structure
- Under Treasurer, Gerard Bradley
- Deputy Under Treasurer, David Ford
- Commissioner and Executive Director, David Smith
- Director, Corporate Capability, Gary Gibbards
- Director, Business Intelligence, Helen Wootoon
- Deputy Commissioner, Allan Mason
- Director, Policy and Legislation, Melinda Watson
- Director, Grants and Subsidies, Simon McKee
- Director, Investigations, Geoff Jones
- Deputy Commissioner, Martin Schwede
- Director, Taxes, Richard Jolly
- Director, Client Management, Wendy Joosen
- Deputy Commissioner, Tony Kulpa
- Director, Business Development, Liam Cooke
- Commissioner and Executive Director, David Smith
- Deputy Under Treasurer, David Ford
Key issues facing the output
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Implementing the online Revenue Management System for duties.
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Implementing Revenue Base Management for duties.
Output performance highlights
| Measure | Target | Actual |
|---|---|---|
| Quantity | ||
| Amount of revenue and grants administered | $7.8B | $8.4B |
| Number of amendment provisions including subordinate legislation developed | 5 | 5 |
| Number of First Home Owner Grant (FHOG) applications | 25,300 | 32,064 1 |
| Number of fuel subsidy payments | 24,200 | 21,014 2 |
| Quality | ||
| Client satisfaction with service provided | 70% | 77% |
| Legislative amendment program and revenue policy advices within service standards | 90% | 100% |
| Timeliness | ||
| FHOG applications processed within service standards | 95% | 97% |
| 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 | 90% | 99% |
| Policy advice, briefings and Ministerial correspondence within deadlines | 90% | 63% 3 |
| Revenue collected within service standards | 95% | 94% |
| Cost | ||
| Total revenue administered per dollar expended - accrual | $199 | $213 |
1. Reflects growth in the housing market.
2. Reflects reduction in number of retail petrol outlets.
3. A major organisational restructure which involved changes in responsibility and accountabilities impacted this measure during 2006-07.
Total revenue, grants and subsidies managed
Analysis: Revenue, grants and subsidies under management grew by $2.8 billion over the period 2002-03 to 2006-07. This growth can be attributed to increased economic growth in Queensland.
Revenue, grants and subsidies under management
Analysis: Growth in the housing market and wage and employment levels has impacted on duties and pay-roll tax revenue growth in 2006-07.
Strategic business priorities
Strategic business priority
Establish positive working relationships with clients and provide information that assists them to confidently meet their obligations and receive their entitlements.
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Investigating the passing on of fuel subsidies
In January 2007, a Fuel Subsidy Task Force was established in OSR to investigate if the full benefit of the State Government's Fuel Subsidy was being passed on by Queensland fuel retailers to their retail customers. The investigations followed concerns about the fall in the unleaded petrol price differential between Brisbane and Sydney and Brisbane and Melbourne over the December 2006-January 2007 period.
The subsidy provides an 8.354 cents per litre saving on eligible fuel purchases from fuel retailers licensed under the Fuel Subsidy Act 1997. It is paid directly to fuel retailers who are required to pass it on to their retail customers by reducing the pump price of the fuel by the amount of the subsidy.
Following submission of the summary of findings of the Task Force to the Deputy Premier, Treasurer and Minister for Infrastructure in August 2007, the Government established a Commission of Inquiry to consider the findings, assess various matters in relation to the fuel industry and the subsidy, and to report to Government. In 2007-08, OSR will implement, as required, any changes to the Fuel Subsidy Scheme which may be approved by the Government following receipt of the Commission's report.
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Connecting with clients
The Office of State Revenue uses its client visit program to connect directly with clients. In 2006-07, we expanded our program to help our clients improve their levels of compliance by understanding the processes involved in self assessing. We also began an awareness campaign to prepare clients for Duties Online, the latest release of our Revenue Management System. In the coming year, we will continue our client visit program, and deliver training to self assessors so that they can take full advantage of electronic lodgement and payment of duties when they are introduced in 2008.
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Quality, convenient, streamlined services
During the year, we expanded our Client Contact Centre's range of services to centralise calls made by clients about land tax, fuel subsidy and the First Home Owner Grant (FHOG). Clients of the Queensland Office of Gaming Regulation were also able to lodge gambling licence applications and make the application fee payments at our Brisbane Contact Centre counter.
In 2007-08, our commitment to quality and streamlined client service will continue. We will review our Client Contact Centre client base to ensure our services continue to meet their needs. We will also continue to develop our revenue officers so they can continue to provide the most timely and accurate information to our clients.
After reaching agreement with revenue offices in the other states and territories, in 2007-08 we will introduce a common application form for the First Home Owner Grant. This new form will help both applicants and their financial institutions lodge and process applications quickly and efficiently. Reviewing our FHOG online database will further streamline the application process so our clients can get on with the business of buying a home.
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Engaging with industry
The Office of State Revenue administers the Community Ambulance Cover Scheme for the State Government via a levy collected by electricity retailers through customers' bills. In 2006-07, we implemented amendments to the Community Ambulance Cover Act 2003 to allow for the transition of new electricity retailers entering the Queensland marketplace.
In 2007-08, we will establish a liaison group between OSR and electricity retailers to engage directly with them on industry-wide issues to ensure the effective administration of the Community Ambulance Cover Scheme.
Strategic business priority
Provide responsive and ongoing legislation and revenue policy advice services to the State Government.
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Delivering taxation reform and savings to Queenslanders
OSR plays a key role in implementing system-wide reform for the benefit of Queensland communities. In 2006-07, we implemented a number of initiatives announced in the 2006-07 State Budget which will maintain Queensland's favourable taxation environment. These included:
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increasing the tax-free threshold for pay-roll tax from $850,000 to $1 million from 1 July 2006
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increasing the tax-free threshold for land tax for resident individuals
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a new first homeowner transfer duty concession for vacant land (from 1 January 2007)
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an increase in the threshold for transfer duty home concession.
We also implemented an increase in transfer duty rates for property valued above $500,000, and strengthened duty provisions for acquisitions of majority interests in land rich corporations and certain land holding trusts.
In 2006-07, we continued taxation reform commitments made under the Intergovernmental Agreement on the Reform of Commonwealth-State Financial Relations (IGA). Hire duty and transfer duty on unlisted marketable securities were abolished in Queensland from 1 January 2007. The IGA reforms will save Queenslanders almost $5 billion over the period 2005-06 to 2011-12.
Reform of Queensland's taxation environment will continue in 2007-08. From 1 January 2008, the rate of mortgage duty will be reduced by 50 per cent. We will also implement other State Budget revenue initiatives such as raising land tax thresholds and increasing motor vehicle duty. From 1 July 2007, we will introduce a three-year, 50 per cent cap on annual increases in land values (used to assess land tax liability).
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Strategic business priority
Develop and maintain simple, efficient and equitable revenue management services.
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Online services - better for business
For OSR's clients, time is money. After successfully introducing electronic lodgement and payment for pay-roll tax clients last year, in 2006-07 OSR continued with the development of Duties Online Release 2 of our Revenue Management System. In 2007-08, after extensive client education and communication programs, duties clients will be able to lodge returns and pay tax electronically, with the assistance of the online tools to help assess the correct amount of duty.
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Using information to support compliance and education
Revenue Base Management (RBM) is a sophisticated knowledge tool that allows OSR to better manage its revenue base through improved revenue forecasting, client profiling and risk management capability. The resulting information allows us to tailor our communication and education programs to particular client needs. In 2006-07, we applied RBM to our pay-roll tax business. We will continue to apply RBM throughout 2007-08 to assist clients to meet their obligations and receive their entitlements.
Creating positive working relationships - online!
With new technologies being developed almost daily, the Office of State Revenue (OSR) understands there are always better ways of doing business.
That's why OSR has made it a priority to work closely with its clients to develop and maintain simple, efficient and equitable revenue management services on which both parties can confidently rely.
Throughout the year OSR progressed the development of the new Revenue Management System (RMS), which will give duties clients the opportunity to lodge returns and pay tax electronically. OSR also
continued developing Revenue Base Management as a tool to improve revenue forecasting, client profiling and risk management.
Combined, these systems will help clients understand the processes involved in self assessing so they can confidently meet their obligations and receive their entitlements online, as well as provide targeted education to improve the overall levels of compliance.
Last reviewed 29 September 2008
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