Taxation
The Office of State Revenue (OSR) delivers and administers revenue management services for Queensland taxes, grants and subsidies. This includes collecting revenue (comprising duties, payroll tax, land tax, Community Ambulance Cover levy and gambling taxes), administering various grants and subsidies, and conducting compliance and debt recovery activities.
OSR also provides legislative and policy advice to the Queensland Government to help maintain and improve the State’s revenue system. The Office also conducts revenue forecasting and trend analysis to help secure Queensland’s revenue base into the future.
Our clients
OSR works with Queensland taxpayers, grant and subsidy recipients, and their agents and professional advisers to help them meet their obligations and receive their entitlements. We also provide legislative and policy advice, revenue forecasting and trend analysis to the Queensland Government.
Structure
- Under Treasurer, Gerard Bradley
- Deputy Under Treasurer, David Ford
- Commissioner and Executive Director, David Smith
- Deputy Commissioner, Allan Mason
- Director, Policy and Legislation, John Marken
- Director, Grants and Subsidies, Geoff Jones
- Director, Investigations, Natalie Wakefield
- Deputy Commissioner, Simon McKee
- Director, Taxes, Richard Jolly
- Director, Client Management, Wendy Joosen
- Deputy Commissioner, Tony Kulpa
- Director, Business Development, Liam Cooke
- Director, Corporate Capability, Liz Wells
- Director, Strategy, Helen Wootton
- Deputy Commissioner, Allan Mason
- Commissioner and Executive Director, David Smith
- Deputy Under Treasurer, David Ford
Key issues facing the output
- Implementing the third and final phase of OSR’s Revenue Management System (RMS) for fuel subsidy, land tax and Community Ambulance Cover. The completion of RMS will benefit both OSR and its clients by reducing compliance costs and offering e-lodgment and e-payment functionality.
- Implementing a red tape reduction program to reduce administrative and compliance costs for clients.
- Implementing payroll tax harmonisation in Queensland and conducting significant client education efforts to support its implementation. Payroll tax harmonisation reduces administration and red tape costs for more than 7,000 Queensland businesses operating in more than one jurisdiction in Australia.
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.
Revenues, grants and subsidies under management
Analysis: Growth in Queensland’s housing market, and wage and employment levels increased duties and payroll tax revenue growth in 2007–08, accounting for approximately 75 percent of total revenue. Queensland businesses pay the lowest payroll tax rate in the nation.
Output performance highlights
| Measure | Target | Actual |
|---|---|---|
| Quantity | ||
| Amount of revenue, grants and subsidies administered | $9.2B | $9.4B1 |
| Number of amendment provisions including subordinate legislation developed | 5 | 62 |
| Number of First Home Owner Grant (FHOG) applications paid | 34,700 | 28,6713 |
| Number of fuel subsidy payments | 22,500 | 18,3104 |
| Quality | ||
| Client satisfaction with service provided | 70% | 75%5 |
| Legislative amendment program and revenue policy advice within standards | 90% | 100% |
| Timeliness | ||
| FHOG applications processed within service standards | 95% | 100% |
| Percentage of investigations performed within standards | 90% | 90% |
| Legislation program and deliverables within deadlines | 90% | 100% |
| Payment of fuel subsidy claims within standards | 90% | 100% |
| Policy advice, briefings and Ministerial correspondence within deadlines | 90% | 71%6 |
| Revenue collected within due dates | 95% | 96% |
|
Cost |
||
| Total revenue administered per dollar expended – accrual | $228 | $1937 |
Variances
1. Reflects increased collections over a range of revenue streams.
2. Reflects new Revenue Management System and payroll tax harmonisation requirements.
3. Reflects tighter housing market.
4. Reflects reduction in number of licensed fuel retailers.
5. Reflects increased levels of client engagement activities, making it easier for clients to access and use services.
6. Decrease due to revision in administrative procedures and templates during 2007–08.
7. Decline reflects additional costs associated with the Revenue Management System.
Our business priorities
Business priority
Establish positive working relationships with clients and provide information that assists them to confidently meet their obligations and receive their entitlements.
- Delivering savings for Queensland motorists
The Queensland Government established a Fuel Subsidy Commission of Inquiry on 21 August 2007 to investigate if Queensland motorists were receiving the full benefit of the 8.354 cents per litre fuel subsidy.
In November 2007, the Commission made a number of recommendations to the Government to improve the effectiveness of the Queensland Fuel Subsidy Scheme.
In 2008–09, we will work in consultation with industry and consumer groups to implement changes to ensure Queensland motorists receive the full benefit of the fuel subsidy at the bowser.
- Industry collaboration maintains effectiveness of Community Ambulance Cover Scheme
By forging positive working relationships with electricity retailers, we can ensure they understand and meet their administrative obligations in relation to the Community Ambulance Cover Scheme for the benefit of all Queenslanders.
OSR administers the Community Ambulance Cover Scheme via a levy collected by electricity retailers through customers’ bills. The levy helps provide a secure funding base for the Queensland Ambulance Service.
In 2007–08, OSR established regular meetings with electricity retailers to discuss and monitor industry-wide issues that might impact on the scheme. In 2008–09, we will continue to engage with electricity retailers and conduct an audit to ensure concessional electricity entitlements are being administered appropriately.
- Connecting with clients
In 2007–08, OSR embarked on an extensive client education program to inform Queensland self assessors about the benefits of Duties Online – the second instalment of OSR’s Revenue Management System. Approximately 1,200 self assessors in South East Queensland and major regional centres attended seminars, workshops and online demonstrations to learn about the new system. In January 2008, we also began redeveloping our website, following feedback from clients and industry bodies.
In 2008–09, we will continue to support existing Duties Online clients while working to introduce new clients to the system.
We will also progress our website redevelopment, making full use of client consultation to inform the design phase. In addition, we will undertake a red tape reduction program to reduce administrative and compliance costs for our clients through e-business and a number of other initiatives.
Business priority
Provide responsive and ongoing legislation and revenue policy advice services to the State Government.
- Delivering taxation reform and savings to Queenslanders
By continuing to implement initiatives that improve the efficiency and equity of Queensland’s tax system, we can maintain Queensland’s tax competitiveness into the future and contribute to keeping Queensland’s economy strong.
During the year, we implemented the following 2007–08 State Budget initiatives:
- a land tax relief package to alleviate the impact of significant increases in land valuations, including a three-year, 50 percent cap on land values (used to assess land tax liability)
- changes to duty rates for vehicle registration or transfer registration from a flat rate to a rate dependent on the number of cylinders of the vehicle
- halving mortgage duty from 1 January 2008, with full abolition from 1 July 2008.
OSR also prepared for the implementation of payroll tax harmonisation in Queensland on 1 July 2008. Legislation was passed to harmonise key aspects of Queensland’s payroll tax system with New South Wales and Victoria, which will bring greater consistency for more than 7,000 businesses operating in more than one state. In 2008–09, we will continue to work closely with industry bodies and Government agencies, and conduct an educational program to help businesses meet their payroll tax requirements. Read more about payroll tax harmonisation in the Engaging our stakeholders and the community section.
Queensland tax reform will continue in 2008–09, with the implementation of the following State Budget initiatives:
- fully abolish mortgage duty from 1 July 2008
- increasing transfer duty exemptions for first homebuyers
- increasing principal place of residence concessions for homebuyers
- simplifying transfer duty and land tax rate structures
- extending payroll tax deductions
- developing a package of concessions to assist older Queenslanders.
In addition, OSR will contribute to the review of Australia’s tax system, announced by the Australian Government in its 2008–09 Budget, and also introduce legislation to give effect to changes to Queensland’s penalty and unpaid taxes interest regime.
Business priority
Develop and maintain simple, efficient and equitable revenue management services.
- Taking our business online
Our expanding Revenue Management System (RMS) offers Queensland taxpayers the convenience of lodging and paying taxes online via a secure e-business interface.
Following the successful implementation of RMS payroll tax in 2005–06, we launched Duties Online in December 2007. Duties Online enables clients to complete their mortgage, insurance and transfer duty returns via the Internet. By June 2008, 75 percent of our clients had converted to Duties Online. Approximately 90 percent of clients in regional Queensland use Duties Online.
In 2008–09, we will develop the third and final phase of RMS for land tax, Community Ambulance Cover and grants and subsidies. Scheduled for completion later in 2009, RMS3 will offer our clients a one-stop shop for all taxation and grants and subsidy e-lodgment and e-payment needs.
- Keeping information and education relevant
OSR’s Revenue Base Management (RBM) tool facilitates management of the State’s tax base by providing enhanced capacity to analyse data, match records across revenue streams and other sources including the Australian Tax Office, and forecast and model revenues. Clients can also benefit through information and education that is targeted towards their needs.
In 2007–08, we applied RBM to our duties business, with the system delivering the following solutions:
- client profiling
- operational reports
- revenue forecasting and modelling solutions
- an analytics ‘cockpit’ which includes budget estimates, trends and revenue reporting
- a transfer duty verification solution to assist our compliance efforts, particularly in identifying and managing revenue risks relating to property sales.
Returns from the RBM project have exceeded expectations with the total revenue benefit to date in excess of $90 million.
In the year ahead, we will continue to enhance RBM capability, and develop strategies to encourage and improve taxpayer compliance through our compliance model. Part of this realignment will involve implementing new compliance initiatives to better handle complex and high value revenue investigations.
Understanding Queensland’s revenue base
Manager of Business Intelligence Matthew Nalder and the team at OSR use Revenue Base Management to develop accurate budget forecasts which aid service delivery planning.
State taxes – including land tax, payroll tax and duties on a range of transactions – form a significant revenue base that helps fund essential services for Queensland communities. Understanding and forecasting this base accurately is essential if the Government is to deliver on its priorities.
OSR’s Revenue Base Management (RBM) system is an information warehouse that provides the Government with accurate advice and budget forecasts which in turn help to plan service delivery.
In 2008, OSR extended RBM to its duties line of business, following on from a successful implementation in payroll tax.
RBM’s data matching and client profiling capabilities also allow for targeted compliance activity, which helps ensure that business and individuals alike pay their ‘fair share’. OSR investigation teams use RBM for case selection and handling, and to target high-risk clients.
RBM is an essential compliance tool for OSR, and is also used to deliver targeted education campaigns for our clients.
Last reviewed 5 November 2008
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