Debt strategy
With careful consideration to the economic impacts of the pandemic this year, we initiated a late payment interest amnesty to reconnect with customers who have outstanding liabilities. The amnesty offers waivers of all late payment interest accrued on outstanding debts.
This approach enables us to directly assist customers to meet their tax obligations by providing extensions, payment arrangements and waiving of late payment interest.
In previous years without the pandemic’s impact, there is a small portion of customer debt that must always be closely managed. Our objective in these times is to manage the recovery of debt in a thorough and timely manner so that outstanding liabilities are paid. This includes maintaining a focus on resolving smaller value, but larger volume, debts so that the number of older debt cases is minimised.
Several factors associated with the pandemic, including payment deferrals, extensions, suspension of debt activities, has impacted debt recovery. For 2020-21, the debt to revenue ratio monthly average was 3.13%.
| Tax base | Total debt 30 June 2021 ($) |
< 30 days ($) |
30-90 days ($) |
> 90 days ($) |
Provision for doubtful debt ($) | Total debt 30 June 2020 ($) |
|---|---|---|---|---|---|---|
| Duties debt | ||||||
| Land transfer/mortgage | 30,504,493 | 2,175,228 | 3,431,121 | 24,898,143 | 8,916,330 | 18,388,515 |
| Insurance | 3,418,606 | 740,660 | 1,510,430 | $1,167,515 | 10,966 | 5,266,535 |
| Hire of goods duty | 193 | 0 | 0 | 193 | 0 | 193 |
| Motor vehicle duty | 1,825,207 | 78,969 | 130,058 | 1,616,180 | 6,500 | 1,262,277 |
| Total duties | 35,748,499 | 2,994,857 | 5,071,609 | 27,682,031 | 8,933,796 | 24,917,520 |
| Other taxes | ||||||
| Payroll tax | 104,324,562 | 5,046,741 | 25,671,269 | 73,606,552 | 46,517,261.65 | 95,140,925 |
| Land tax | 752,249,735 | 416,357,501 | 15,071,369 | 320,820,865 | 0 | 552,030,935 |
| Vacant residential land tax | 2,221,003 | 0 | 51,350 | 2,169,653 | 0 | 3,290,201 |
| Congestion levy | 26,840,295 | $39,210 | 9,379,317 | 17,421,767 | 104,740 | 9,641,145 |
| Commercial passenger vehicle service levy | 2,109,480 | 528,571 | 303,665 | 1,277,243 | 201275 | 2,278,915 |
| Wagering and betting tax | 0 | 0 | 0 | 0 | 0 | 76,859 |
| Cattle and swine duty | 438,011 | 45,337 | 113,103 | 279,571 | 0 | 74,615 |
| Total other taxes | 888,183,086 | 422,017,360 | 50,590,073 | 415,575,651 | 46,823,277 | 662,533,595 |
| All taxes | 923,931,585 | 425,012,217 | 55,661,682 | 443,257,682 | 55,757,073 | 687,451,115 |
| Summary of written off debt 2020-21 | $ |
|---|---|
| Hire of goods duty | 0 |
| Congestion levy | 22,097 |
| Motor vehicle duty | 698,183 |
| Land transfer/mortgage duty | 4,723,681 |
| Payroll tax | 67,233,203 |
| Land tax | 4,212,523 |
| Commercial passenger vehicle service levy | 7 |
| Insurance duty | 0 |
| Sheep and goat duty | 0 |
| Cattle and swine duty | 5,120 |
| Sundry debts | 0 |
| Total debt written off | 76,894,814 |
