Debt strategy
While the overwhelming majority of our customers meet their payment obligations, there is a small portion of debt that must be closely managed.
Our objective 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.
We are currently developing online capabilities to make it easier for our land tax debt customers to manage payment of their debt online. This should bring significant improvements in customer experience and it is hoped that this functionality will be delivered in the latter part of 2019-2020.
In real terms our debt level is consistently below our monthly average target of less than 2% of total annual revenue collected. This reflects our high standards in managing debt and keeping it at low levels. For 2018-19, the debt-to-revenue ratio monthly average was 1.27%.
Analysis of debt 2018-19
| Tax base | Total debt 30 June 2019 ($) |
< 30 days ($) |
30-90 days ($) |
> 90 days ($) |
Provision for doubtful debt ($) | Total debt 30 June 2018 ($) |
|---|---|---|---|---|---|---|
| Duties debt | ||||||
| Land transfer/mortgage | 20,473,963 | 1,838,050 | 1,039,100 | 17,596,813 | 7,444,649 | 15,282,109 |
| Insurance | 51 | 0 | 0 | 51 | 10,966 | 5,043 |
| Hire of goods | 193 | 0 | 0 | 193 | 0 | 193 |
| Motor vehicle | 1,271,873 | 77,204 | 63,318 | 1,131,351 | 481,830 | 1,159,049 |
| Total duties | 21,746,080 | 1,915,254 | 1,102,418 | 18,728,408 | 7,937,445 | 16,446,394 |
| Other taxes | ||||||
| Payroll tax | 59,979,358 | 9,673,828 | 12,302,058 | 38,003,472 | 79,292,646 | 57,312,009 |
| Land tax | 488,233,663 | 410,894,366 | 7,871,579 | 69,467,718 | 0 | 116,721,561 |
| Vacant residential land tax | 1,272,041 | 93,650 | 832,321 | 346,070 | 0 | 0 |
| Congestion levy | 3,073,611 | 0 | 11,508 | 3,062,103 | 11,730 | 2,656,596 |
| Commercial passenger vehicle service levy | 1,256,655 | 1,056,521 | 190,713 | 9,421 | ||
| Cattle and swine duty | 39,903 | 3,390 | 3,993 | 32,520 | 0 | 39,914 |
| Total other taxes | 553,855,231 | 421,721,755 | 21,212,172 | 110,921,304 | 79,304,376 | 176,730,080 |
| All taxes | 575,601,311 | 423,637,009 | 22,314,590 | 129,649,712 | 87,241,821 | 193,176,474 |
Summary of written off debt 2018-19
| Tax base | $ |
|---|---|
| Hire of goods duty | 0 |
| Congestion levy | 7,875 |
| Motor vehicle duty | 202,788 |
| Land transfer/mortgage duty | 1,094,398 |
| Payroll tax | 13,222,978 |
| Land tax | 383,012 |
| Commercial passenger vehicle service levy | 411 |
| Insurance duty | 0 |
| Sheep and goat duty | 24,297 |
| Cattle and swine duty | 0 |
| Sundry debts | 0 |
| Total debt written off | 14,935,759 |
