Debt strategies

The SRO has a debt level consistently below 2 per cent of the total revenue collected in a year. The average for OECD countries (2013) was 21.4 per cent, so the SRO performs to a consistently high standard in maintaining debt at remarkably low levels.

Our debt-to-revenue ratio of 1.37 per cent was achieved in an environment of increasing customer base, growth in revenue receipts, and a truncated 2015 land tax issue cycle that was reduced from 14 to eight weeks. The average monthly debt-to-revenue ratio for the year was 0.88 per cent, which was an improvement on the average of 0.92 per cent for the previous year.

We also received additional funding to focus our efforts on smaller value, but larger volume, land tax debts, resulting in the resolution of 2300 cases (9300 assessments) with a value of $5.44 million. This was in addition to 192 cases resolved at a total value of $9.2 million.

Additionally, a robust review of our processes this year identified further opportunities to make it even easier for customers to do business with us, by reducing the:

  • Period between a debt becoming overdue and recovery action commencing, and
  • Level of aged debt

Adopting these initiatives will enhance online convenience by setting up instalment payments and sending alerts to customers when instalments are due or overdue.