Debt strategy
At the beginning of the financial year, the debt-to-revenue ratio monthly average was 2.66%, following 2 years of measures designed to support Victorians through the COVID-19 pandemic and an increase in tax assessed.
Over the past 12 months, we addressed high debt levels by allocating extra resources and conducting targeted debt-reduction activities. As a result, we reduced the debt-to-revenue ratio monthly average to 1.98% by 30 June 2024.
We ran several targeted campaigns in the 2023–24 financial year, aimed at recovering debt from customers who had not complied with their payment obligations.
We also engaged extensively with customers before their payment due date – such as sending letters and emails tailored to customers’ individual circumstances – to drive on-time payments and prevent debt.
With regards to legal action, we served 242 complaints and filed 149 originating processes.
| Tax base | Total debt 30 June 2023 ($) |
< 30 days ($) | 30-90 days ($) | > 90 days ($) | Provision for doubtful debt ($) | Total debt 30 June 2024 ($) |
|---|---|---|---|---|---|---|
| Duties debt | ||||||
| Land transfer/mortgage | 26,607,118 | 1,823,587 | 1,755,226 | 29,044,424 | 21,165,492 | 32,623,237 |
| Insurance | 2,250 | 46,983 | 0 | 2,250 | 10,347 | 49,233 |
| Hire of goods | 0 | 0 | 0 | 0 | 0 | 0 |
| Motor vehicle duty | 2,189,416 | 141,685 | 49,564 | 2,236,003 | 6,995 | 2,427,252 |
| Total duties | 28,798,784 | 2,012,255 | 1,804,790 | 31,282,677 | 21,182,834 | 35,099,722 |
| Other taxes | ||||||
| Payroll tax | 119,456,397 | 6,878,563 | 18,661,535 | 77,598,766 | 167,712,034 | 103,138,864 |
| Land tax | 765,200,134 | 328,427,816 | 11,083,475 | 237,522,806 | 0 | 577,034,097 |
| Vacant residential land tax | 8,750,446 | 483,049 | 5,139,026 | 4,187,886 | 0 | 9,809,961 |
| Congestion levy | 10,074,933 | 2,260 | 61,795 | 6,274,768 | 1,602,227 | 6,338,823 |
| Commercial passenger vehicle service levy | 7,248,761 | 458,952 | 35,143 | 4,991,985 | 521,567 | 5,486,080 |
| Wagering and betting tax | 126,530 | 186,059 | 121,127 | 0 | 448,000 | 307,186 |
| Cattle and swine duty | 165,093 | 6,422 | 4,043 | 121,992 | 48,470 | 132,457 |
| Total other taxes | 911,022,294 | 336,443,121 | 35,106,144 | 330,698,203 | 170,332,298 | 702,247,468 |
| All taxes | 939,821,078 | 338,455,376 | 36,910,934 | 361,980,880 | 191,515,133 | 737,347,190 |
| Summary of written off debt 2023–24 | $ |
|---|---|
| Hire of goods | 0 |
| Congestion levy | 53,073 |
| Motor vehicle duty | 284,968 |
| Land transfer/mortgage | 425,207 |
| Payroll tax | 13,045,741 |
| Land tax | 767,150 |
| Commercial passenger vehicle service levy | 29,590 |
| Insurance | 41,600 |
| Sheep and goat | 0 |
| Cattle and swine | 0 |
| Sundry debts | 0 |
| Total debt written off | 14,647,329 |
