CANBERRA: The Tax Office has fallen short of budget revenue targets by $4.2 billion, its 2017 annual report shows. The 20,435-strong organisation also reported it continued to cut deals with the top end of down, rather than heading to court. Over the past financial year the ATO initially issued 36 large companies with tax bills amounting to $2.8 billion, but after wheeling and dealing it collected only half that amount – $1.4 billion. Net tax collections in 2016–17 were $359.3 billion, up $16.7 billion (4.9 per cent) over the previous year, but $4.2 billion (1.2 per cent) below the amount expected at the time of the budget 2016–17. While the shortfall was under the amount recorded a year earlier (2015–16) of $14.5 billion, a report by the Australian National Audit Office released last year found that its revenue figures could not be relied on because the ATO has at times overstated or distorted revenue.
“Subdued wage growth” continued to have an impact on individual’s tax collections in 2016–17, which were up $6.8 billion (3.6 per cent) over the previous year, but below budget expectations by $3.1 billion. GST collections were $2.5 billion (4.3 per cent) higher than the previous year, but $0.9 billion (1.5 per cent) below the budget 2016–17 expectations, “reflecting softer consumption growth and lower consumer price inflation than anticipated”. Company tax receipts were $5.8 billion (9.2 per cent) higher than the previous year. “This reflected higher commodity prices flowing on to stronger growth in company profits,” the ATO said.
