2012-14

Revenue in Focus

Foreword by the Commissioner of State Taxation

As the Commissioner of State Taxation in South Australia, I am pleased to present RevenueSA’s ‘Revenue in Focus’ publication, which outlines the activities of RevenueSA and how we can assist you to meet your state revenue obligations. Additionally, the publication identifies the various ways with which you can, as a taxpayer, interact with RevenueSA. It also outlines our key compliance focus for the next two years.

RevenueSA is charged with securing the revenue that the State Government is entitled to collect. During the 2011-12 financial year, RevenueSA collected approximately $3.2 billion in revenue. The revenue collected is used by government to fund the provision of essential services including public health and safety, education and law and order.

In addition to revenue collection, RevenueSA manages the first home owner grant scheme which pays grants to first home buyers.

In the 2011-12 financial year, the cost to government to collect its taxes was less than 70 cents for every $100 of tax collected, which compares favourably with other state and federal revenue agencies.

Our web based lodgement service (RevNet) allows taxpayers to register for tax, lodge documents and pay

their tax liability.

Another area of focus is our educational programs, which include releasing a number of publications

and holding taxpayer information sessions. These services are available free of charge.

RevenueSA has an active compliance program to monitor and manage risk to revenue, covering taxation, grants and rebate schemes. Compliance resources are directed to two main areas, being high risk audit and debt management activities. Sophisticated data matching and data analysis support these activities. This is explained in greater detail within this publication.

RevenueSA has published Service Standards which detail our commitment to providing a high quality service to taxpayers. I welcome your feedback as to the service we provide. This can be done through the yearly taxpayer survey or by contacting one of our officers, writing a letter or sending RevenueSA an email. Contact details are provided at the end of this document and are also listed on our website revenuesa.sa.gov.au.

I hope that you find this publication useful and that it provides the information to help you manage your state taxation obligations.

Mike WalkerMike Walker COMMISSIONER OF STATE TAXATION

PAGE 1

Our structure

Mike WalkerCommissioner of State Taxation

Ian Morris Deputy Commissioner of State Taxation

land tax, emergency services levy, payroll tax, stamp duty, first home owner grant and taxation business services

Graeme Jackson Deputy Commissioner of State Taxation

legislative interpretation, objections and appeals, taxpayer education and communication, and revenue accounting services

Tim Smith Deputy Commissioner of State Taxation

compliance, debt management, risk management and internal audit projects

PAGE 2

Table of contents

Our staff ..........................................................4

Our clients ......................................................4 South Australia .....................................4 Taxpayers ..............................................4 Taxpayer representatives ......................4 Other revenue authorities ......................4

Providing service ............................................4 Counter and call centre .........................4 RevNet ..................................................4 Service improvements ...........................5

Measuring our service ....................................5

Secrecy and use of official information ...........5

Freedom of information (FOI) .........................6

Education and communication .......................6

Consultation with stakeholders .......................6

Revenue we collect ........................................6 Emergency services levy ......................6 Land tax ................................................7 Payroll tax .............................................7 Stamp duty ............................................7

Grants we administer First home owner grant .........................8 First home bonus grant .........................8

Payment options .............................................8 RevNet ..................................................8 In person ...............................................9 B Pay .....................................................9 Telephone ..............................................9 By mail ..................................................9 Instalments ............................................9

Objections.......................................................9 Objection to an assessment or decision .............................................9 Objection to valuations ........................10 Objection to a land use category .........10 Payment of liability pending an objection .........................................10

Our compliance strategy...............................10 High risk audit activities ....................... 11 Debt management activities ................ 11

Contacting us................................................12

PAGE 3

Our staff RevenueSA undertakes a wide range of functions including:

► collecting stamp duty, land tax, payroll tax and the fixed property component of the emergency services levy (ESL); and

► administering the first home owner grant (FHOG) and the first home bonus grant (FHBG).

RevenueSA is committed to being:

► accountable; ► professional; ► timely and responsive; ► efficient and effective; ► collaborative; ► fair and honest; and ► consistent in advice.

As well as processing returns, calculating tax liabilities and maintaining taxpayer data, our staff are also actively engaged in lodgement enforcement, compliance activities, taxpayer service and enquiry/dispute resolution.

Our aim is to be recognised as an employer of choice by providing a working environment that:

► is healthy, friendly and free from discrimination; ► supports and promotes learning and development, continuous improvement and staff participation; and

► provides a range of flexible working arrangements that promote the achievements of a satisfactory work/life balance.

Our clients SOUTH AUSTRALIAThe people and Government of South Australia are our principal clients. RevenueSA is responsible for the collection of state revenue, used by the government to fund the provision of essential services, including public health and safety, education and law and order for South Australian citizens. RevenueSA also collects the fixed property component of the emergency services levy which specifically funds the provision of emergency services.

TAXPAYERS RevenueSA has direct dealings with taxpayers who have state revenue obligations. These range from home owners to property investors, and from small businesses to large corporations.

TAXPAYERS REPRESENTATIVESRevenueSA has direct dealings with taxpayer representatives, such as conveyancers, real estate agents, accountants and legal professionals, who act on behalf of clients who have state revenue obligations.

OTHER REVENUE AUTHORITIESRevenueSA consults extensively with other state, territory and Commonwealth revenue authorities. Information is exchanged under relevant legislation to assist in the proper identification and accurate assessment of taxation liabilities.

Providing ServiceCOUNTER AND CALL CENTRERevenueSA provides a front counter service which is open from 9:00 am to 5:00 pm on any business day, and is located on the ground floor, State Administration Centre, 200 Victoria Square, Adelaide.

RevenueSA’s counter service staff can assist you with state revenue matters, including:

► payments of state revenue liabilities; ► collection of agent certificates; ► collection of forms; ► lodgement of documents for opinion assessment;

► access to our RevNet terminals; and ► for clients with less than 10 documents per year, lodgement of documents for assessment.

If you wish to call us, please contact our call centre for enquiries relating to land tax, emergency services levy, payroll tax, stamp duty or the first home owner grant. A listing of the call centre telephone numbers is located at the end of this publication and on the contact us page of revenuesa.sa.gov.au.

REVNETRevNet is an Internet based system that allows an easy, flexible and more effective way for you to do business with RevenueSA.

RevNet provides approved clients with the ability to perform the following functions in the convenience of their own office:

PAGE 4

► calculate and pay South Australian stamp duty and Lands Titles Office fees on a wide range of documents;

► request, receive, pay and update South Australian emergency services levy and land tax agent certificates;

► view, pay and update emergency services levy and land tax agent certificates that are requested through the Land Services Group Property Interest Report;

► register as a payroll tax taxpayer online; ► complete and lodge South Australian payroll tax returns and annual reconciliations online; and

► make online payments of payroll tax liabilities. RevenueSA has achieved a rate of 91% of stamp duty documents self-determined using RevNet and over 3 700 taxpayers have elected to use the payroll tax monthly payment facility to make their payroll tax payments online.

Over 390 agents are also approved to use the land tax and emergency services levy certificate component of RevNet.

SERVICE IMPROVEMENTSThe Competitiveness Council has requested state government agencies to develop and implement plans that identify practical initiatives to reduce the impact of red tape on business. In broad terms, red tape refers to unnecessary or burdensome paperwork or compliance costs to business of regulation.

A focus of the initiatives has been an overhaul of state taxation legislation and greater use of electronic systems to assess and pay taxes. Business is the main beneficiary of the removal of redundant provisions and regulations that created confusion and time-wasting, and impeded voluntary compliance.

As part of phase 2 of the Government’s red tape reduction program, the Competitiveness Council has asked agencies to identify non-essential procedures, processes, forms, licences and regulations that add to the cost of dealing with government.

To date a total of $30m per year in savings has been realised by the Department of Treasury and Finance as part of the red tape reduction initiative.

In addition, we are implementing a new revenue management system, which will increase our level of service to taxpayers’ enquiries and introduces further online functionalities to assist taxpayers in meeting their state taxation obligations.

Measuring our serviceRevenueSA’s service standards commit to regular taxpayer surveys to facilitate continuous improvement. In accordance with this commitment, a yearly taxpayer survey invites participants to provide feedback on our level of service.

The survey is designed to seek feedback from taxpayers in the areas of general customer service, information provided and education channels. In addition, there are eight core questions to measure the key drivers of customer satisfaction, as recommended by the Government Reform Committee.

The eight core questions are a requirement to enable measurement against the South Australian Strategic Plan (SASP) Target 1.7: Performance in the public sector - customer and client satisfaction with government service.

The target aims to increase the satisfaction of South Australians with government services by 10% by 2014, maintaining or exceeding that level of satisfaction thereafter.

The eight questions relate to the satisfaction of overall quality, accessibility and timeliness of the service, along with how taxpayers were treated, information provided, knowledge and competency of staff, level of service and delivery.

Our service level is benchmarked against other state revenue offices.

RevenueSA values professional, timely and responsive service. Your feedback is important to us, and we want to hear from you if, for any reason, you are dissatisfied with any services we provide you. We also want to hear your ideas on how we can improve our services. Naturally we would also like you to let us know when our service exceeds your expectations. We seek constructive feedback to continually improve our services and develop new standards within our capabilities.

Please contact RevenueSA any time you would like to provide feedback.

Secrecy and use of official informationSecrecy provisions protect your personal information and are encompassed within the Taxation Administration Act 1996 and other Acts administered by RevenueSA.

RevenueSA staff are bound by the secrecy provisions and, upon commencing employment with RevenueSA, are required to sign a secrecy declaration acknowledging that they have read and understood the secrecy and confidentiality provisions of the legislation they administer. Contractors and other persons who are required to access floor space occupied by RevenueSA are also bound by the same secrecy provisions and are required to sign a secrecy declaration.

PAGE 5

A criminal offence is committed by any person found guilty by the Courts of knowingly breaching the secrecy provisions.

Your personal information will only be collected by RevenueSA for the purposes of administering state taxation and associated legislation. All personal information collected by RevenueSA is securely stored and not misused. RevenueSA will not unlawfully disclose any information.

Freedom of information (FOI)The Freedom of Information Act 1991 gives you the right to access (subject to certain restrictions) documents held by government.

If you wish to make an FOI request, an application form can be located at archives.sa.gov.au. Applications should be addressed to:

Freedom of Information Officer Department of Treasury & Finance GPO Box 1045 ADELAIDE SA 5001

Education and communicationRevenueSA has a strong focus on educational activities and providing a high level of information and products so that taxpayers have all the information they need to meet their obligations. This information is available on our website and is reviewed and updated periodically.

In December 2010, RevenueSA launched its new Internet site which provides taxpayers and their representatives with information relating to the taxes, levies and grants RevenueSA administers. We encourage you to visit the RevenueSA website at revenuesa.sa.gov.au. The site provides you with a communication channel of current and relevant information.

In July 2009, a new revenue publication system was introduced and over 50 Information Circulars and 45 Revenue Rulings have been released since its introduction, along with annual Guides to Legislation for payroll tax and land tax. A review is currently underway of Circulars issued before June 2009, with current information being released in the new formats. All Circulars will remain available on our Internet site for archival purposes.

Taxpayer Information Sessions are conducted annually. We are currently investigating other channels to provide further access for taxpayers and their representatives to educational material, such as online seminars and informative education modules.

RevenueSA also offers taxpayers and their representatives a free email subscription service which provides updates on releases of revenue publications, Taxpayer Information Sessions and changes to services. You can register for this service on revenuesa.sa.gov.au by selecting the image at the bottom of the page.

You can also now stay up to date with current announcements through our RSS Newsfeed.

Consultation with stakeholders RevenueSA has established a specific industry consultative group, the State Taxes Liaison Group, that meets on a regular basis to discuss various taxation issues. The following bodies have representatives on this group:

► Australian Institute of Conveyancers SA ► Australian Society of CPA’s ► Institute of Chartered Accountants ► Law Council of Australia ► Law Society of South Australia ► National Institute of Accountants ► Property Council of Australia ► Real Estate Institute of SA ► Taxation Institute of Australia

RevenueSA also consults regularly with other key industry groups on specific matters as they arise.

Revenue we collectEMERGENCY SERVICES LEVYThe emergency services levy (ESL) is applied each financial year to properties in South Australia. The money raised through this levy is allocated to fund essential emergency services.

The levy raised $179.8 million during the 2011-12 financial year, of which approximately $82.2 million was met by the state government and represents compensation to the fund to offset concessions to pensioners, payment of liability on government owned property and remissions to a variety of property owners.

PAGE 6

The ESL is calculated in accordance with the ownership of land as at 12.01 am on 1 July each financial year. The owner at that time is liable for payment of the ESL for that financial year. If the property is sold after 1 July, any adjustment of the ESL is a matter for resolution between the parties (normally adjusted by conveyancers at settlement).

For more information please visit the ESL page on revenuesa.sa.gov.au or contact our emergency services levy team on 1300 366 150 or revesl@sa.gov.au.

The collection of the levy on mobile property (cars, motorbikes etc) occurs through the Department for Planning, Transport and Infrastructure, Service SA Centres (ph 13 10 84).

LAND TAXLand Tax is an annual tax which applies to all land in South Australia, however there are tax free thresholds and exemptions which exclude a number of properties from the tax.

Land tax is calculated by applying a progressive rate structure to the total taxable site value of all land owned (by an owner or a group of owners) as at midnight 30 June, and liability arises for the immediately preceding financial year (i.e. the owner of the land at midnight on 30 June 2012 is liable for the tax for the financial year 1 July 2012 to 30 June 2013). Where land is owned jointly, a person holding a minor interest may be taken not to be an owner.

Land tax rates can be located on the land tax page on revenuesa.sa.gov.au and are indexed each year by the average percentage change in site values, as determined by the Valuer-General.

The tax is calculated based on the site value of the land as determined by the Valuer-General pursuant to the Valuation of Land Act 1971.

Land tax is not subject to the Goods and Services Tax (GST).

For more information please visit the land tax page on revenuesa.sa.gov.au, view the Guide to Legislation or contact our land tax team on 08 8204 9870 or landtax@sa.gov.au.

PAYROLL TAX Payroll tax is a tax that is calculated on wages paid or payable. Payroll tax is payable when an employer’s (or group of employers’) total Australian wages exceeds the South Australian threshold. An employer’s Australian wages comprise its South Australian wages and all wages paid interstate. In South Australia, payroll tax is collected and administered in accordance with the Payroll Tax Act 2009.

Payroll tax rates and taxable thresholds can be located on the payroll tax page on revenuesa.sa.gov.au.

Wages are taxable in South Australia where the employee performs services (work) wholly in South Australia, if they are performed wholly in another state or territory they may be taxable in that state or territory. Where an employee works in more than one state or territory, there are rules to determine where the relevant tax is paid.

Generally, employers are required to self-determine their liability on a monthly basis by calculating the tax payable for each return period and remit the tax due when the return is lodged. Employers are then required to perform an annual reconciliation at the end of the financial year to ensure the correct liability is paid.

From 1 July 2009, South Australia introduced harmonised legislation designed to reduce compliance costs to taxpayers and simplify administration. Although each state and territory continues to have different payroll tax rates and

threshold amounts, the payroll tax legislation in New South Wales, Victoria, Tasmania, Northern Territory, Australian Capital Territory and South Australia is virtually identical, while Queensland’s legislation, although worded differently, has the same outcomes. Western Australia have harmonised in eight key areas. (At the time of publication).

For more information please visit the payroll tax page on revenuesa.sa.gov.au, view the Guide to Legislation or contact the payroll tax team on (08) 8204 9880 or payrolltax@sa.gov.au.

Over 11 000 employers were registered for payroll tax during the 2011-12 financial year.

STAMP DUTY Stamp duty is a charge on certain documents and transactions. Stamp duty is charged at either a flat rate or at a progressive ad valorem rate (based on the value of the transaction) depending on the particular document or transaction.

Calculators are available on revenuesa.sa.gov.au to assist you to estimate the amount of stamp duty payable. There is also a Stamp Duty Glossary of Terms which may help you to understand some of the terms used.

Lodgement methods for stamp duty documentsRevenueSA offers a number of different methods for the lodgement, determination and payment of stamp duty. These include:

RevNet: For a list of documents that can be self determined via RevNet and further information on the various document types please refer to the Stamp Duty Document Guide (Self-Determined).

PAGE 7

Opinion: For a list of document types that must be submitted to the Commissioner of State Taxation for an assessment of stamp duty, and relevant supporting documentation, please refer to the Stamp Duty Document Guide (Opinions). These documents must be submitted with a completed Opinion Form and any relevant supporting information.

Opinion assessments can be submitted via RevNet by authorised RevNet opinion users. For further information see the RevNet page on revenuesa.sa.gov.au or contact the RevNet team on (08) 8207 2333 or revnet@sa.gov.au.

Counter: Where a lodger is an ‘infrequent user’, RevenueSA will continue to provide an on the spot (depending on length of queue) counter assessment service for non-RevNet users. An ‘infrequent user’ is one that processes less than 10 documents per year.

The documents, and relevant supporting information, that may be lodged over the counter by ‘infrequent users’ are those listed in the Stamp Duty Document Guide (Self-Determined). These documents are to be presented to the counter with a completed Lodgement Form and any relevant supporting information.

Please Note: Given the special significance of caveats, if required, counter assessments will be provided for any request to stamp a Caveat.

For further information please visit the stamp duty page on revenuesa.sa.gov.au or contact our stamp duty team on (08) 8226 3730 or stamps@sa.gov.au.

Over 46 000 conveyance transfers attracted stamp duty during the 2011-12 financial year.

Grants we administerRevenueSA administers the first home owner grant (FHOG) and the first home bonus grant (FHBG) for first home owners.

FIRST HOME OWNER GRANT First home buyers may be eligible for the FHOG, which is a once off payment of $7000. There are a number of criteria that must be met in order to be paid the grant, such as the first home buyer must be an Australian citizen or permanent resident and the property value must not exceed $575 000.

An online eligibility checklist can be completed at revenuesa.sa.gov.au, by simply answering seven ‘yes/no’ questions.

Applications must be lodged with RevenueSA or an Approved Agent (i.e. mortgage provider). Application forms are available on revenuesa.sa.gov.au.

For more information please visit the first home owner page on revenuesa.sa.gov.au, or contact our first home owner grant team on (08) 8226 3750 or fhog.support@sa.gov.au.

FIRST HOME BONUS GRANTFirst home buyers who qualify for the $7000 FHOG may also be eligible for a first home bonus grant (FHBG). Applicants may be eligible to receive the FHBG if they:

► entered into a contract to purchase or build a home, or commenced construction as owner builders, between 5 June 2008 and 16 September 2010 (inclusive); or

► entered into a contract to purchase or build a new home, or commence construction as owner builders, on or after 17 September 2010 but before 30 June 2013.

The amount of the FHBG is:

PeriodAmount

New Home Existing Home

5 June 2008 to 16 September 2010 Up to $4000 Up to $4000

17 September 2010 to 30 June 2013 Up to $8000 Nil

For more information about the bonus grant, please visit the first home bonus grant page on revenuesa.sa.gov.au, or contact our first home owner grant team on (08) 8226 3750 or fhog.support@sa.gov.au.*new home means a home that has not been previously occupied or sold as a place of residence and includes a substantially renovated home.

A First Home Bonus Calculator is available on revenuesa.sa.gov.au to determine the amount of the bonus grant that a first home buyer may be eligible for.

Applications must be lodged with RevenueSA or an Approved Agent (i.e. mortgage provider). Application forms are available on revenuesa.sa.gov.au.

Payment optionsREVNETRegistered RevNet users may make payments via RevNet for self-determined and opinion stamp duty assessments, payroll tax liabilities, and requests for land tax and the emergency services levy certificates.

Payment is made via direct debit (Electronic Payment Authority) initiated by the RevNet user within RevNet. RevenueSA does not independently access a taxpayer’s bank account.

PAGE 8

Registered payroll tax RevNet users may elect to pay their monthly returns via Electronic Fund Transfer (EFT). Further details regarding this payment option can be located in the payroll tax payment option page on revenuesa.sa.gov.au.

IN PERSONPayments may be made in person at RevenueSA.

Payments for land tax and emergency services levy may also be made at Service SA Centres or any business displaying the BPOINT or Australia Post logos upon presentation of the Payment Remittance Advice/Notice of Assessment.

Payment may be made by cash or EFTPOS at all locations, and by cheque or money order at all locations except BPOINT outlets. Credit card payments (VISA or Mastercard) will be accepted for emergency services levy and land tax payments to a maximum of $2000 per Payment Remittance Advice.

B PAYPayment via BPAY is accepted for land tax, emergency services levy and payroll tax (from savings or cheque accounts) via participating financial institution.

Credit card payments (VISA or Mastercard) will be accepted for emergency services levy and land tax payments to a maximum of $2000 per Payment Remittance Advice.

TELEPHONEThe emergency services levy and land tax can be paid using most push button phones. Please call 1300 669 344 using VISA or Mastercard, to a maximum of $2000 per Payment Remittance Advice. Quote the reference number appearing on the Payment Remittance Advice.

BY MAILAll state revenue payments can be made via mail.

To make payment by mail please return the Payment Remittance Advice with a cheque or money order made payable to the Commissioner of State Taxation.

INSTALMENTSLand tax payers are provided the option to pay in full or by four quarterly instalments on their Notice of Assessment. Emergency services levy payers may contact the emergency services levy team on 1300 366 150 prior to the due date of the Notice of Assessment to apply for instalment arrangements.

To enquire regarding instalment arrangements for stamp duty and payroll tax, please contact our Debt Management Services team on (08) 8226 3725 or revenuesadms@sa.gov.au.

ObjectionsOBJECTION TO AN ASSESSMENT OR DECISIONIf you are not satisfied with a stamp duty, land tax or payroll tax assessment or decision, or a decision in relation to a FHOG application, you may lodge a written objection within 60 days of the date of the assessment or decision with:

The Honourable Michael O’Brien MP The Minister of Finance GPO Box 668 ADELAIDE SA 5001

The grounds for objection must be stated fully and in detail. This generally involves setting out the facts and addressing the relevant points of law where it is considered that the Commissioner of State Taxation may have incorrectly applied the law. Relevant references to case law and other legal references may also be included in an objection.

Formal objections are considered by the Minister who will seek advice from the Crown Solicitor’s Office. Depending on the complexity of the issues involved, the process of obtaining legal advice can be a lengthy one. Nonetheless, the Minister will determine your objection as soon as possible after receipt of the Crown Solicitor’s opinion and notify you of his decision.

In relation to stamp duty, land tax and payroll tax objections:The onus of proof lies with the taxpayer to prove that their case is correct.

Unsuccessful objections to a tax assessment may be appealed to the Supreme Court within 60 days of the Minister’s determination of the objection, or if the objection has not been determined, within 90 days of its lodgement.

In relation to FHOG or FHBG objectionsUnsuccessful objections to a FHOG application may be appealed to the Magistrates Court within 60 days of the Minister’s determination of the objection.

PAGE 9

OBJECTION TO VALUATIONSAn objection to a valuation, used to calculate land tax or the emergency services levy, must be in writing and contain a full and detailed statement of the grounds on which the objection is based. Valuation objections should be directed to:

State Valuation Office GPO Box 1354 ADELAIDE SA 5001

Email: LSGObjections@sa.gov.au Objection to Valuation Enquiries - Phone: 1300 653 345

Note: Where a taxpayer believes the site value of their property is incorrect they should, within 60 days of the receipt of the first rates notice from any statutory authority that advises of the site value (e.g. local council, RevenueSA or SA Water), send an objection in writing to the State Valuation Office.

An objection cannot be made where the Valuer-General has already considered an objection by you to the valuation lodged in response to another rating authority invoice for that particular financial year.

OBJECTION TO A LAND USE CATEGORYAn objection to the land use category attributed to a property must be made within 60 days of the receipt of the Notice of Emergency Services Levy Assessment.

Objections must be in writing and state the grounds on which the objection is based and the land use category that the levy payer believes should be attributed to the land. Objections can be delivered:

in person: Commissioner of State Taxation Ground Floor State Administration Centre 200 Victoria Square, Adelaide

by mail: GPO Box 1647 ADELAIDE SA 5001

by email: revsaesl@sa.gov.au

Telephone enquiries in relation to land use categories can be made by calling 1300 366 150.

If an objection is lodged, the levy payer is still required to pay any emergency services levy outstanding by the due date. If an objection is upheld, which results in a reduction in levy, a refund may be issued.

PAYMENT OF LIABILITY PENDING AN OBJECTIONAny objection to an assessment, decision or valuation does not mean payment of an assessed liability can be withheld pending the outcome of the objection. Taxpayers are reminded that the liability is due and payable by the due date and the tax may be recovered as if no objection were pending, including penalty tax and interest accruing.

Please refer to Information Circular 39 for more information.

Our compliance strategyIt is RevenueSA’s responsibility to secure the revenue to which the state government is entitled to collect in order to achieve state government priorities.

Key priorities for our compliance activities include:

1. Promote, improve and encourage voluntary compliance by ensuring taxpayer awareness of their obligations. This is achieved through a blend of active compliance activity and educational measures, which ensure that taxpayers understand and meet their obligations.

2. Contribute to the effective management and enforcement of taxation legislation (including the implementation of State Budget and other government taxation policy outcomes).

3. Secure the state’s revenue collection through risk-based compliance programs, which include audit and debt management activities and the integration of data matching and data analysis methodology, to identify potential non-compliance.

The two main areas where our compliance resources will be directed for the next two years are high risk audit matters and debt management activities.

These key activities are supported by the use of sophisticated data matching and data analysis techniques which assist in the identification of targets which demonstrate the highest risk to revenue. Data matching and analysis routines utilise data from a variety of sources including other state and territory revenue offices, the Australian Taxation Office and WorkCoverSA.

RevenueSA also shares its data with other law enforcement agencies. All exchanges of information are carried out in accordance with the appropriate legislation to assist each agency with the proper identification and accurate assessment of taxation liabilities.

PAGE 10

HIGH RISK AUDIT ACTIVITIESPayroll Tax

► Unregistered Employers: Compliance focus will be upon unregistered employers who may have a payroll liability in South Australia. They will be identified as a result of data matching RevenueSA data with data from other souces, e.g. other jurisdictions, the Australian Taxation Office, ASIC and WorkCoverSA.

► Verification Audits: Audits will be conducted on registered employers to ensure that all taxable salary and wage components are being included. Specific attention will be given to superannuation and contractor issues.

Stamp Duty ► Conveyance (Land and Business): Areas of specific focus will include transfers of land and/or businesses for less than market value, transfer of rent rolls between real estate agents, Section 71CC exemptions (family farming properties), trustee to trustee transactions and transactions which have been the subject of approved or rejected corporate reconstruction exemption applications.

► Land Rich: Compliance activity involves the identification of transactions (via a number of methods), where the transactions involve the transfer of South Australian land assets to ensure that correct stamp duty is paid on these transactions.

► Land holder: Land holder legislation was introduced from 1 July 2011. Under these provisions, stamp duty applies to the acquisition of South Australian land assets as well as particular goods of the land holding entity. Compliance activity will include identifying transactions that involve the acquisition of land, as well as ensuring that the value of other items

such as mining and petroleum related leases or licences, aquaculture leases and forestry rights are included in land holder transactions. Other areas of focus will include identification of schemes to avoid attaining a prescribed interest, the identification of grouping issues, confirming the value of registered forestry property rights and identification of relevant entities with aquaculture licences using data from Primary Industries and Resources South Australia (PIRSA).

► RevNet: Areas of focus will include participant based audits where high risk documents are transacted and/or a high number of voided transactions occur and un-submitted batches remain an area of concern. Close monitoring to date has ensured that no participant has been able to collect payments from clients and fail to pass the funds on to RevenueSA.

Land Tax ► Residential exemptions and amalgamations: Compliance activity in these areas is heavily supported by data matching and analysis and typically several thousand potential targets are referred for investigation. Attention is focused on the identification and assessment of taxpayers who are claiming a full or partial residential exemption on property which is not the taxpayer’s principal place of residence; and/or are receiving the benefit of more than one threshold on land ownership.

► Other exemptions: Specific attention will also be given to properties that have a primary production exemption applied and to entities who are claiming a Section 4 exemption to ensure that both of these types of exemptions are valid.

Other Taxes ► Compliance activity will also continue in a number of other areas where the risks to revenue have been assessed as less severe. These areas include:

– eligibility checks for the first home owner grant;

– identification of non-payment or underpayment of stamp duty on the transfer or registration of motor vehicles;

– identification of non-payment or underpayment of stamp duty on insurance premiums; and

– identification of non-payment or under-payment of stamp duty on other types of industry based conveyances, e.g. taxi licences, fishing licences statutory fishing rights and aquaculture licences.

The investigation process link from the audit and compliance page on revenuesa.sa.gov.au provides valuable information for taxpayers about the audit process, how to prepare for an audit and what rights and obligations taxpayers have if they are selected for an audit.

DEBT MANAGEMENT ACTIVITIESDebt management activities are a significant element of the overall compliance strategy. The debt management team handle referrals of outstanding debt from all operational areas of RevenueSA as well as referrals of outstanding debt as a result of compliance activity.

In addition to outbound calls, field visits and letters of demand, the debt management team utilise a range of tools to assist in securing debt. These tools include:

PAGE 11

► placing a caveat over the first charge on real property;

► placing a charging order over real property; ► imposing a garnishee order for any money due and owing to a taxpayer;

► imposition of penalty tax; and ► imposition of interest.

Where a taxpayer is able to show financial hardship, or under other specific circumstances, an instalment arrangement may be facilitated to enable a taxpayer to meet their liability. Instalment arrangements are subject to interest and other conditions dependant upon the tax type, the value of the debt and the length of the arrangement being sought. Generally, instalment arrangements are only provided when the taxpayer has sought assistance prior to the due date of the original assessment.

Contacting usIN PERSON RevenueSA Ground Floor State Administration Centre 200 Victoria Square Adelaide SA 5000

DX 179 Adelaide

GENERAL ENQUIRESPhone: (08) 8226 3750 Toll Free: 1800 637 778 (for callers outside of Adelaide)

Fax: (08) 8226 3737

Email: revenuesa@sa.gov.au

Postal: GPO Box 1353, ADELAIDE SA 5001

Council Rate Concession for Self Funded Retirees Phone: 1300 366 150

Fax: (08) 8207 2141

Email: revsacouncil@sa.gov.au

Postal: GPO Box 1647 ADELAIDE SA 5001

Compliance Services Phone: (08) 8226 3725 1800 676 198

Fax: (08) 8226 3834

Email: revsacompliance@sa.gov.au

Postal: GPO Box 2149 ADELAIDE SA 5001

Debt Management Services Phone: (08) 8226 3725 1800 676 198

Fax: (08) 8207 2289

Email: revenuesadms@sa.gov.au

Postal: GPO Box 2149 ADELAIDE SA 5001

Emergency Services Levy Phone: 1300 366 150

Fax: (08) 8207 2100

Email: revsaesl@sa.gov.au

Postal: GPO Box 1647 ADELAIDE SA 5001

Payments to:

Locked Bag 555 ADELAIDE SA 5001

First Home Owner Grant Phone: (08) 8226 3750

Fax: (08) 8226 3737

Email: fhog.support@sa.gov.au

Postal: GPO Box 1353 ADELAIDE SA 5001

Land TaxPhone: (08) 8204 9870

Fax: (08) 8207 2100

Email: landtax@sa.gov.au

Postal: GPO Box 1647 ADELAIDE SA 5001

Payments to:

Locked Bag 555 ADELAIDE SA 5001

Payroll Tax Phone: (08) 8204 9880

Fax: (08) 8226 3805

Email: payrolltax@sa.gov.au

Postal: GPO Box 2418 ADELAIDE SA 5001

RevNet Phone: (08) 8207 2333

Fax: (08) 8226 3805

Email: revnet@sa.gov.au

Postal: GPO Box 1353 ADELAIDE SA 5001

RevNet Opinions Phone: (08) 8226 3750

Fax: (08) 8226 3737

Email: sdrequisitions@sa.gov.au

Postal: GPO Box 1353 ADELAIDE SA 5001

Stamp Duty - General Phone: (08) 8226 3750

Fax: (08) 8226 3737

Email: stamps@sa.gov.au

Postal: GPO Box 1353 ADELAIDE SA 5001

Stamp Duty - Bundle Status Phone: (08) 8226 9800

Fax: (08) 8226 3737

Email: stamps@sa.gov.au

Postal: GPO Box 1353 ADELAIDE SA 5001

Stamp Duty - Refunds Phone: (08) 8226 0869

Fax: (08) 8226 3737

Email: stampdutyrefunds@sa.gov.au

Postal: GPO Box 1353 ADELAIDE SA 5001

Stamp Duty - Insurance, Rental, Motor Vehicles Phone: (08) 8204 9888

Fax: (08) 8226 3888

Email: returns@sa.gov.au

Postal: GPO Box 2418 ADELAIDE SA 5001

PAGE 12