ATO Releases Latest Taxation Statistics

by Mary Swire, Tax-News.com, Hong Kong

18 March 2008

The latest edition of the Australian Taxation Office’s most comprehensive statistical publication, is now available to view.

Tax Commissioner Michael D’Ascenzo announced this week that 'Taxation statistics 2005–06' aims to provide valuable information about Australia’s tax system, including personal and company tax, superannuation and excise.

“Along with our annual report and compliance program, this publication is part of our open and accountable approach to administering the tax system, and helps us identify emerging social trends and potential compliance issues," Mr D'Ascenzo explained, going on to add:

“The detailed tables we provide in our taxation statistics publication are valuable resources for the public sector, researchers and the community more broadly."

Where personal taxes were concerned, for the 2005–06 income year, 11.5 million individuals lodged income tax returns.

Individuals claimed $27bn in total deductions, including $13.1bn in work-related expenses – a growth of 9.5% on the previous year.

“Work-related expenses present a continuing compliance challenge for us,” Mr D’Ascenzo observed.

“We review claims that are outside normal patterns and the claims of people identified as being at risk of not complying."

“I ask people to take particular care with claims in their tax returns this year,” he added.

For the 2005–06 income year, most individuals continued to lodge their tax returns through a tax agent (72.8%).

However, there was a 17.2% growth in the number of people lodging through e-tax, the Tax Office’s electronic lodgment program.

“It’s worth noting the highest growth rate for people using e-tax was for those aged 55-74,” Mr D’Ascenzo commented.

Company tax income increased by 10% to more than $1,802bn in 2005–06, according to the report.

Large companies represented less than 0.4% of total companies, but reportedly accounted for 64.5% of total company net tax.

“While company expenses were up by $125bn on the previous year, the growth in expenses was less than the growth in income,” Mr D’Ascenzo observed of this particular branch of tax.

Additionally, the number of self managed superannuation funds grew by 13% during the 2006–07 financial year, while the value of assets held by these funds grew by 30%.

“We are tailoring our education, support and compliance activities to assist trustees and approved auditors in this growing market to understand and meet their obligations under the law,” Mr D’Ascenzo stated.

This year, the taxation statistics have been improved to include a new chapter on charities and not for profit organisations, as well as a chapter on the international aspects of the Australian tax system.

Other improvements include more information on rental properties, work-related deductions, superannuation co-contributions and enhancements to industry benchmarks.

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