House of Representatives Committees

Standing Committee on Economics, Finance and Public Administration

Review of the ANAO audit report No.37 1998-99 on the management of the Tax File Numbers
Media Releases

Media release: 11 April 2000

NEED FOR ATO TO GET BASICS RIGHT

Systemic failings in ATO data and systems quality and the failure of the ATO to take a long term view will be the focus of the House Economics Committee's hearing this week with the Tax Office.

The ATO will be questioned on the progress they have made in implementing the Auditor-General's recommendations for improving the Tax File Number system when the House Economics Committee holds its next TFN hearing in Canberra on Wednesday 12 April 2000.

Committee Chairman, Mr David Hawker MP, said 'the impression emerging from this inquiry is that the ATO focuses on dealing with the immediate problems and issues to the almost neglect of longer term issues that form the underpinnings of the ATO system.'

'The Auditor-General has stated that $500m worth of tax is not being collected because of tax file number weaknesses. The findings of the Audit Report and the issues raised by witnesses during this inquiry go to the heart of ATO operations. These findings include:

3.2 million more tax file numbers in Australia than people;
large numbers of duplicate and inactive TFNs;
failure of the ATO to make full use of available information; and
deficient computer systems in some areas.'

'These deficiencies are of even greater concern when the flow-on effects of the TFN system are taken into account' said Mr Hawker. 'Departments such as Centrelink and the Child Support Agency rely on the TFN system as a central part of their operations and as a means of preventing fraud against the Commonwealth. In addition, there is a concern that the failings of the TFN system could have implications for the Australian Business Number.'

'It is crucial that the ATO focus on getting its core business right. The ATO must put aside what appears to be a search for the 'quick fix' and instead focus on a whole-of government, long term approach to its decision making about the TFN system.'

'The Committee expects to table its report on this inquiry in June' concluded Mr Hawker.

Information on the progress of the inquiry is available on the Committee's website at: http://www.aph.gov.au/house/committee/efpa/TFNaudit/tfnindex.htm

Ends // 11 April 2000
Further information: David Hawker MP (Chairman) 02 - 6277 4837 (Parliament House)
Melissa Stutsel (Principal Research Officer) 02 - 6277 2319
Email: EFPA.Reps@aph.gov.au

Public Hearing Program

Date:          Wednesday 12 April 2000
Time:          10.00am - 12.00pm           Australian Taxation Office
Location:     Committee Room 2R1
                     Parliament House, Canberra

Note: The hearing is to be broadcast on the Parliamentary Internet site at: http://webcast.aph.gov.au/livewebcast1.asp and on the Parliament House Monitoring System.

Committee Membership 39th Parliament

Chairman: Mr David Hawker MP
Deputy Chairman: Mr Gregory Wilton MP
Members:
Mr Anthony Albanese MP
Ms Anna Burke MP
Ms Teresa Gambaro MP
Mrs Kay Hull MP
Mr Mark Latham MP
Mr Christopher Pyne MP
Hon Alex Somlyay MP
Dr Andrew Southcott MP

For a copy of the Audit Report No 37 - Management of Tax File Numbers:

Contact the Australian National Audit Office (02 6203 7685) or their website http://www.anao.gov.au

Or Government Info Shops or their website http://www.ausinfo.gov.au