Debt

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
Debt to revenue ratio monthly average of 1.27% in 2018-19
Debt to revenue ratio monthly average of 1.11% in 2017-18