ATO says the cost of managing tax affairs has increased

Every year, the Tax Office issues a comprehensive statistical report based on the most complete set of data at its disposal. Its most recent Taxation Statistics is compiled from tax return information from 2009-10 as well as FBT, GST and activity statement data from the 2010-11 year.  One item of data listed in Taxation Statistics, the cost of managing tax affairs, is taken directly from the label on the individual tax return form. This label records expenses relating to preparing and lodging tax returns for taxpayers, and includes expenses such as tax agent fees and interest charges imposed by the Tax Office. The Tax Office’s statistical report shows that the cost of managing tax affairs increased by 11.3% from 2008-09 to 2009-10.

 Number of taxpayersTotal cost $m2008-091  Average cost per taxpayer $Number of taxpayersTotal cost $m2009-101Average cost per taxpayer $
Individuals25,734,0421,8383205,671,8522,017356
1:  Data for the 2008-09 and 2009-10 income years includes data processed up to 31 October 2012 and 31 October 2011 respectively.

2:  This will not include data from the tax return where the taxpayer has claimed the cost of managing tax affairs under a different label.