Minister for Revenue and the Assistant Treasurer
27 January 2006 - 3 December 2007
TAX OFFICE DEBT COLLECTION ENHANCEMENT — REDUCING TAXATION DEBT AND OUTSTANDING SUPERANNUATION GUARANTEE CHARGE PAYMENTS
The Government will provide additional funding to the Australian Taxation Office of $125.7 million over four years (including $5.9 million in capital over three years) to enable the Tax Office to enhance its debt collection capability. The enhanced capability will enable the Tax Office to reduce the existing stock of taxation debt and outstanding superannuation guarantee charge owed by employers. An additional $60.0 million of superannuation guarantee charge payments is expected to be transferred to employees’ superannuation accounts.
The enhanced debt recovery will ensure that the level of collectable taxation debt is manageable over the longer term. It is expected to result in additional revenue of $140.0 million over four years. Total tax related collections and superannuation guarantee cash receipts, including amounts previously recognised as revenue, are expected to increase by $1.4 billion over four years.
The additional superannuation guarantee collections will benefit those employees for whom the additional amounts are collected by enhancing their superannuation savings and hence their retirement incomes.
The enhanced debt collection is also expected to result in additional GST collections for the States of $450 million over four years. The States have agreed to fund their share of the cost of administering the additional GST collections.
Media Contact: Brad Emery 6277 7360