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ATO's 'annus horribilis' - 2017 performance report

THE House Standing Committee on Tax and Revenue today tabled its performance review of the ATO’s Annual Report 2016–2017.

The Committee’s review continues in the tradition of past assessments, which since 2015 have monitored the progress of the ATO’s ‘Reinvention’ of its services model in support of voluntary compliance. According to the ATO’s 2017 annual report, the Reinvention Program has delivered against this goal over the tax year. Tax lodgements were up again strongly –a positive outcome for the ATO.

But the 2016-17 reporting period was also a challenging one for the ATO, and one marked by controversy. In May 2017 the revelations of Operation Elbrus followed the prolonged system outages of late 2016 and early 2017 that left tax professionals without service access for lengthy periods.

Then, as the Committee commenced its annual report review in March 2018, there was an acceleration of bad press as the ATO fought off allegations of systemic unfairness to small business, and performance driven debt action, which were televised in an ABC/Fairfax media expose in April 2018.

These developments strengthened the Committee’s resolve to conduct a more rigorous performance review of the ATO’s progress against Reinvention values and objectives; in effect to test the ATO’s annual reportage against the experience of the taxpayer, and tax agents, in the community.

Committee Chair Jason Falinski MP said, “The Committee found that the ATO’s digital reinvention of its services has changed every aspect of our tax administration framework for taxpayers and tax professionals alike. Taxpayers now have greater responsibilities to meet their obligations, and the work of tax professionals has increased rather than declined.

“Given this,” Mr Falinski said, “it has never been more important that the ATO retain community confidence—that it meets its core obligations to procedural fairness, and that it is seen to do so, while also ensuring its online platforms are as efficient and as easy to use as promised.”

The Committee’s inquiry attracted 30 submissions, 18 of these from taxpayers in dispute with the ATO, as well as from tax professionals assisting them. The Committee has made 37 recommendations to ensure that there is consistent agency-wide benchmarking and reporting against core Reinvention commitments on fairness to taxpayers and on digital functionality.

The report also recommends for improved data disaggregation on small business debt, including on garnishees, the restructuring of the ATO’s appeals, dispute resolution and compensation processes, refinement of key aspects of tax law, and improvements to the ATO’s communications and information strategies.

The Committee’s report, entitled 2017 Annual Report of the Australian Taxation Office: Fairness, Functions and Frameworks—Performance Review, is available on the Committee’s website here.

The 2017 Annual Report of the Australian Taxation Office is available at: www.ato.gov.au/About-ATO/Annual-report-2016-17/

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Miners deliver people, $3.75 million and ADF support to the flood recovery

RESOURCE companies TerraCom and South32 Cannington have increased donations from the sector to $3.75 million for the flood recovery efforts in North Queensland.
 
Queensland Resources Council (QRC) chief executive Ian Macfarlane said TerraCom donated $250,000 to GIVIT, while South32’s Cannington mine added another $250,000 to the company’s original $1 million.
 
“Thank-you to TerraCom and South32 Cannington for generously supporting communities affected by this significant weather event. The contributions from the resource sector will go a long way to helping Queenslanders get back on their feet,” Mr Macfarlane said. 
 
“I would also like to thank all of the resource employees who have been walking up and down streets to help remove flood damaged property from people’s homes and to our member companies who have provided equipment to assist in the recovery. 

“The cooperation between the mine sites and the sharing of local knowledge with the Disaster Relief Task Force is ensuring resources are getting on the ground as quickly as they can. 

“Glencore has supported hay drops by providing access to its Ernest Henry site for the RAAF to conduct their operations.  It has also provided heavy equipment (loaders & forklifts) and people power to assist in the hay drops for stranded cattle and for the removal of dead cattle.
 
“Adani Australia has had employees helping to clean out affected homes which were inundated from the floodwaters. 
 
“South32 Cannington has also provided heavy equipment for near neighbours in the disposal of dead cattle and has been on standby to help with refuelling at its airport if needed as part of the hay drops," Mr Macfarlane said.

“Queenslanders are renowned for being tough.  These are resilient communities and they know how to dig in and work together after a disaster. It’s great to see our members getting stuck in and helping their neighbours and regional communities.”

In total, South32 has donated $1,250,000, Glencore contributed $1,000,000, the BHP Foundation, MMG Dugald River and Aurizon provided $250,000 each, Anglo American tipped in $200,000 while QCoal Foundation, Adani Australia and Incitec Pivot donated $100,000 each.
 
Premier Annastacia Palaszczuk started the appeal with a $200,000 donation and her Government listed The Australian Red Cross, UnitingCare, Salvation Army and St Vincent de Paul Society Queensland as the non-government partners and said people can also donate to GIVIT.

www.qrc.org.au

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More cane toad witnesses to invade Parliament House

THE House Standing Committee on the Environment and Energy will hold a second public hearing tomorrow for its inquiry into controlling the spread of cane toads.

The Department of the Environment and Energy, the Department of Agriculture and Water Resources and the CSIRO will give evidence at the hearing.

The inquiry is focused on how cane toads can be controlled and additional support that could be provided.

Public hearing programs, submissions received and further information can be found on the inquiry website at www.aph.gov.au/canetoad.

Last week, the Committee heard evidence from scientists, researchers and non-government organisations involved in controlling cane toads.  A proof transcript and other details are available on the inquiry website.

Public hearing details: 10am–11am (Canberra time), Wednesday 20 February 2019, Committee Room 1R5, Parliament House, Canberra

An audio broadcast of the public hearing can be accessed at https://www.aph.gov.au/News_and_Events/Watch_Parliament.

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Reserve Bank Governor to appear before House Economics Committee in Sydney

THE House of Representatives Standing Committee on Economics will hold a public hearing with the Governor of the Reserve Bank of Australia (RBA), Dr Philip Lowe, in Sydney from 9.30am to 12:30pm on Friday, February 22, 2019.

Since the previous hearing with the RBA in August 2018, monetary policy has remained accommodative with a cash rate of 1.50 percent, following the RBA’s recent decision to leave interest rates unchanged.

Commenting on the decision to keep rates on hold, the RBA Governor noted that "the central scenario is for the Australian economy to grow by around 3 per cent this year and by a little less in 2020 due to slower growth in exports of resources".

"The housing markets in Sydney and Melbourne are going through a period of adjustment, after an earlier large run-up in prices. Conditions have weakened further in both markets and rent inflation remains low."

In relation to the inflation outlook, the Governor said, "Underlying inflation is expected to pick up over the next couple of years, with the pick-up likely to be gradual and to take a little longer than earlier expected. The central scenario is for underlying inflation to be 2 percent this year and 2¼ percent in 2020."

The Governor concluded that "the low level of interest rates is continuing to support the Australian economy. Further progress in reducing unemployment and having inflation return to target is expected, although this progress is likely to be gradual".

The Governor, at a speech on February 6, said, "Today, the probabilities appear to be more evenly balanced’ between an increase or decrease in rates".

It is also notable that in December, the Deputy‑Governor commented, "Quantitative easing is a policy option in Australia, should it be required."

The Chair of the House Economics Committee, Tim Wilson MP, said, "The committee will examine these issues in more detail and will ask the RBA if it remains confident that current monetary policy settings will encourage growth and inflation consistent with the target for coming years."

Public hearing details: 9.30am to 12.30pm, Friday, February 22, 2019, NSW Parliament, Macquarie Room, Macquarie Street.

The hearing will be webcast: http://www.aph.gov.au/Watch_Read_Listen

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All aboard for hydrogen

THE House Infrastructure, Transport and Cities Committee inquiry into automated mass transit is shifting into turbo, with a hearing next week to investigate the potential convergence of new energy sources and automation.

Committee chair John Alexander said the Committee has seen at first hand the possibilities for the automation of public transport and the use of hydrogen fuel cells to power vehicles.

"The potential for cleaner, greener, more efficient transport systems is immense," Mr Alexander said.

"Automated high speed rail has the potential to revolutionise inter-city transport, creating a new pattern of settlement around Australia."

The committee will hear evidence from Hydrogen Mobility Australia, the Federal Chamber of Automotive Industries and the Australasian Railway Association at a public hearing on Tuesday.

In a submission to the inquiry, Hydrogen Mobility Australia noted that automation, connectivity and electric drivetrains are "inextricably linked in that they are complementary technologies". The Federal Chamber of Automotive Industries have added that hydrogen fuel cell development is taking place globally for a range of vehicle types including buses, trains, heavy trucks, material handling vehicles, as well as conventional motor vehicles.

In its submission to the inquiry, the Australasian Railway Association noted that greater use of automation will assist passenger and freight rail operators to increase their capacity.

Public hearing details: 5pm – 6.30pm, Tuesday, 19 February 2019 Committee Room 1R2, Parliament House, Canberra.

5pm: Hydrogen Mobility Australia and Federal Chamber of Automotive Industries

5.40pm: Australasian Railway Association

6.30pm: Close

The hearing will be broadcast live at aph.gov.au/live

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