Debt strategy
At the beginning of the financial year, the debt to revenue ratio monthly average was 3.16%, following 2 years of measures designed to support Victorians through COVID-19 pandemic impacts.
These measures included suspension of debt activities, payment deferrals, extensions and debt amnesty. With the return of debt recovery activities in the 2022–23 financial year, the ratio had reduced to 2.66% by 30 June 2023.
We ran several targeted campaigns aimed to help customers comply with their payment obligations.
With regards to legal action, we had 280 complaints and originating processes.
| Tax base | Total debt 30 June 2022 ($) |
< 30 days ($) | 30-90 days ($) | > 90 days ($) | Provision for doubtful debt ($) | Total debt 30 June 2023 ($) |
|---|---|---|---|---|---|---|
| Duties debt | ||||||
| Land transfer/mortgage | 30,212,731 | 1,889,755 | 3,428,864 | 21,288,499 | 16,360,472 | 26,607,118 |
| Insurance | 119,036 | 0 | 0 | 2,250 | 10,347 | 2,250 |
| Hire of goods duty | 0 | 0 | 0 | 0 | 0 | 0 |
| Motor vehicle duty | 2,191,860 | 336,903 | 294,764 | 1,557,749 | 5,451 | 2,189,416 |
| Total duties | 32,523,627 | 2,226,658 | 3,723,628 | 22,848,498 | 16,376,270 | 28,798,784 |
| Other taxes | ||||||
| Payroll tax | 112,331,879 | 13,245,011 | 13,614,306 | 92,597,080 | 118,851,596 | 119,456,397 |
| Land tax | 710,189,871 | 484,252,864 | 12,796,320 | 268,150,950 | 0 | 765,200,134 |
| Vacant residential land tax | 10,589,946 | 1,351,676 | 3,595,113 | 3,803,657 | 0 | 8,750,446 |
| Congestion levy | 14,747,313 | 26,740 | 65,054 | 9,983,139 | 1,629,115 | 10,074,933 |
| Commercial passenger vehicle service levy | 4,027,565 | 2,558,659 | 84,407 | 4,605,695 | 405,942 | 7,248,761 |
| Wagering and betting tax | 25,574 | 126,530 | 0 | 0 | 0 | 126,530 |
| Cattle and swine duty | 209,677 | 2,400 | 4,800 | 157,893 | 46,070 | 165,093 |
| Total other taxes | 852,121,825 | 501,563,880 | 30,160,000 | 379,298,414 | 120,932,723 | 911,022,294 |
| All taxes | 884,645,452 | 503,790,538 | 33,883,628 | 402,146,912 | 137,308,993 | 939,821,078 |
| Summary of written off debt 2022-23 | $ |
|---|---|
| Hire of goods | 0 |
| Congestion levy | 25,681 |
| Motor vehicle duty | 343,924 |
| Land transfer/mortgage | 5,010,257 |
| Payroll tax | 10,525,008 |
| Land tax | 209,228 |
| Commercial passenger vehicle service levy | 56,520 |
| Insurance | 200 |
| Sheep and goat | 917 |
| Cattle and swine | 280 |
| Sundry debts | 0 |
| Total debt written off | 16,172,015 |
