5506.0 - Taxation Revenue, Australia, 2012-13 Quality Declaration 
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 28/05/2014   
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ADJUSTED MEASURES OF GOVERNMENT REVENUE


The taxation revenue statistics presented in this release are in accordance with the Australian System of Government Finance Statistics (GFS). This system is outlined in the Australian System of Government Finance Statistics: Concepts, Sources and Methods (cat. no. 5514.0) which is consistent with the International Monetary Fund's Government Finance Statistics Manual 2001 (IMF GFSM 2001).

The GFS framework reflects taxation revenue collected by each level of government. The purpose of this appendix is to consider an alternative presentation of revenue which takes into account the level of government at which revenue is used rather than simply collected. The analysis considers the flows, by way of current grants, that occur between the levels of government in Australia, and the impact that this has on revenue at each of these levels. Also considered is the effect of direct and indirect transfers to households on total revenue. To aid in the understanding of these flows, the following analytical measures of revenue have been derived. Users should note that these measures are not themselves part of the GFS framework.


ADJUSTED TAXATION REVENUE

Adjusted taxation revenue is equal to GFS taxation revenue collected by each level of government, plus current grants received from higher levels of government, less current grants paid to lower levels of government. This measure is designed to give a clearer indication of the levels of government at which taxation revenue is actually used or spent. The source for a significant amount of the current grants distributed between levels of government is taxation revenue, such as the GST. However, some of the revenue distributed may have come from a source other than taxation. Further, it should be noted that some of the current grants transferred from Commonwealth Government to the state and local governments are Specific Purpose Payments (SPPs). Unlike the GST-related grants, these payments are 'tied' to specific policy areas as agreed between the two levels of government. Similar arrangements exist between state and local government. SPPs for current purposes are included with other current grants in deriving adjusted taxation revenue.


ADJUSTED TOTAL REVENUE

Adjusted total revenue is equal to adjusted taxation revenue plus all other non-taxation sources of revenue. Non-taxation revenue includes revenue from sales of goods and services, property income (interest, dividends, income tax equivalents, land rents and royalties), fines, capital transfers, and current transfers other than grants. Current grants are excluded from non-taxation revenue because these have already been taken into account in deriving adjusted taxation revenue.


ADJUSTED TOTAL REVENUE LESS TRANSFERS TO HOUSEHOLDS

An important role of government is the redistribution of income, by way of direct and indirect 'benefits', to individual households. These transfers can be deducted from adjusted total revenue to derive adjusted total revenue less transfers to households. Direct benefits are regular cash payments made to households by government without any requirement to provide goods and services in return (e.g. welfare payments). Indirect benefits are non-cash benefits and services provided by government to individual households (e.g. concessions for transport and utilities, medical and pharmaceutical benefits and natural disaster relief).

The three derived measures explained above are illustrated in the following diagram:

Diagram: ADJUSTED TOTAL REVENUE LESS TRANSFERS TO HOUSEHOLDS


ADJUSTED TAXATION REVENUE

Table 1 shows the derivation of adjusted taxation revenue, for all three levels of government in Australia.


TABLE 1. ADJUSTED TAXATION REVENUE, by level of government, and as % of GDP(a)

200708
200809
200910
201011
201112
201213
$m
$m
$m
$m
$m
$m

COMMONWEALTH

1. Taxation revenue collected(b)
285 949
278 363
267 678
289 120
317 548
338 364
As % of GDP
24.3
22.1
20.6
20.6
21.4
22.2
As % of total tax revenue
82.0
82.0
80.3
80.5
81.4
81.5
2. Current grants to state government(c)
69 480
73 087
75 682
79 978
84 064
84 870
3. Current grants to local government
89
46
12
14
35
32
4. Current grants to multi–jurisdictional sector(d)
7 347
6 691
8 808
8 250
8 617
9 108
5. Adjusted taxation revenue =1–2–3–4(e)
209 033
198 539
183 177
200 877
224 832
244 354
As % of GDP
17.7
15.8
14.1
14.3
15.1
16.0
As % of total tax revenue
59.9
58.5
55.0
55.9
57.7
58.9

STATE

1. Taxation revenue collected(b)
53 310
50 784
54 716
58 323
59 875
63 497
As % of GDP
4.5
4.0
4.2
4.1
4.0
4.2
As % of total tax revenue
15.3
15.0
16.4
16.2
15.4
15.3
2. Current grants from Commonwealth government
69 480
73 087
75 682
79 978
84 064
84 870
3. Current grants to local government
2 220
3 284
2 857
3 333
4 217
3 737
4. Current grants to multi–jurisdictional sector(d)
330
462
499
569
499
538
5. Adjusted taxation revenue =1+2–3–4(e)
120 241
120 124
127 042
134 399
139 223
144 092
As % of GDP
10.2
9.5
9.8
9.6
9.4
9.5
As % of total tax revenue
34.5
35.4
38.1
37.4
35.7
34.7

LOCAL

1. Taxation revenue collected(b)
10 139
10 896
11 607
12 449
13 202
14 027
As % of GDP
0.9
0.9
0.9
0.9
0.9
0.9
As % of total tax revenue
2.9
3.2
3.5
3.5
3.4
3.4
2. Current grants from Commonwealth government
89
46
12
14
35
32
3. Current grants from state government
2 220
3 284
2 857
3 333
4 217
3 737
4. Adjusted taxation revenue = 1+2+3(e)
12 447
14 227
14 476
15 797
17 454
17 797
As % of GDP
1.1
1.1
1.1
1.1
1.2
1.2
As % of total tax revenue
3.6
4.2
4.3
4.4
4.5
4.3

TOTAL

Gross Domestic Product
1 178 953
1 258 654
1 296 324
1 406 670
1 486 072
1 522 874
Total taxation revenue collected
348 800
339 419
333 336
359 205
389 895
415 122
As % of GDP
29.6
27.0
25.7
25.5
26.2
27.3

(a) As published in Australian National Accounts, December Quarter 2013 (Cat. no. 5206.0), Table 32 Expenditure on GDP, Current Prices: Annual.
(b) According to GFSM2001.
(c) Part of the Commonwealth Government grants paid to State Governments are passed on to Local Governments.
(d) The multi–jurisdictional sector contains units where jurisdiction is shared between two or more governments, or where classification of a unit to a jurisdiction is otherwise unclear. The main type of units currently falling into this category are the public universities.
(e) The sum of taxation revenue for all levels of government does not equal the sum of adjusted taxation revenue for all levels of government owing to grants paid to the multi–jurisdictional sector.


ADJUSTED TOTAL REVENUE, AND ADJUSTED TOTAL REVENUE LESS TRANSFERS TO HOUSEHOLDS

Table 2 below shows adjusted total revenue, and adjusted total revenue less transfers to households for all three levels of government.

TABLE 2. ADJUSTED TOTAL REVENUE, less transfers to households, and as % of GDP(a)

200708
200809
200910
201011
201112
201213
$m
$m
$m
$m
$m
$m

COMMONWEALTH

1. Adjusted taxation revenue(b)
209 033
198 539
183 177
200 877
224 832
244 354
2. Non–taxation revenue(c)
17 729
20 285
24 970
20 863
21 539
23 471
3. Adjusted total revenue =1+2
226 762
218 824
208 146
221 740
246 371
267 824
As % of GDP
19.2
17.4
16.1
15.8
16.6
17.6
4. Direct benefits to households(d)
86 078
111 548
98 490
105 559
116 160
121 713
5. Indirect benefits to households(e)
27 606
30 767
33 548
36 315
36 147
34 790
6. Adjusted total revenue, less transfers to households =3–4–5
113 077
76 509
76 108
79 865
94 063
111 321
As % of GDP
9.6
6.1
5.9
5.7
6.3
7.3

STATE

1. Adjusted taxation revenue(b)
120 241
120 124
127 042
134 399
139 223
144 092
2. Non–taxation revenue, excluding current grants from Commonwealth government(c)
38 550
50 143
64 268
62 138
66 308
59 311
3. Adjusted total revenue =1+2
158 791
170 267
191 310
196 538
205 531
203 403
As % of GDP
13.5
13.5
14.8
14.0
13.8
13.4
4. Direct benefits to households(d)
1 350
1 182
1 948
1 583
1 339
1 647
5. Indirect benefits to households(e)
3 006
3 253
3 693
4 106
4 480
4 748
6. Adjusted total revenue, less transfers to households = 3–4–5
154 435
165 833
185 669
190 849
199 712
197 008
As % of GDP
13.1
13.2
14.3
13.6
13.4
12.9

LOCAL

1. Adjusted taxation revenue(b)
12 447
14 227
14 476
15 797
17 454
17 797
2. Non–taxation revenue, excluding current grants from Commonwealth and state governments(c)
15 000
16 562
17 376
17 889
18 871
20 566
3. Adjusted total revenue =1+2
27 447
30 789
31 852
33 686
36 325
38 363
As % of GDP
2.3
2.4
2.5
2.4
2.4
2.5
4. Direct and indirect benefits to households(f)
. .
. .
. .
. .
. .
. .
5. Adjusted total revenue, less transfers to households = 3–4
27 447
30 789
31 852
33 686
36 325
38 363
As % of GDP
2.3
2.4
2.5
2.4
2.4
2.5

. . not applicable
(a) As published in Australian National Accounts, December Quarter 2013 (cat no 5206.0).
(b) Derived in Table 1.
(c) Non–taxation revenue includes revenue from sales of goods and services, interest income, other property income (such as dividends, income tax equivalents, land rents and royalties), fines, capital revenue, and all current revenue other than grants.
(d) Direct benefits to households are monetary transfers.
(e) Indirect benefits to households are transfers 'in–kind' via goods and services.
(f) Local government does not make transfers of this kind to households.


As shown below in Graph 1, all four measures of Commonwealth Government taxation revenue increased from 2011–12 to 2012–13:
  • Commonwealth taxation revenue was $338,364m, an increase of $20,816m (7%).
  • Commonwealth adjusted taxation revenue was $244,354m, an increase of $19,522m (9%).
  • Commonwealth adjusted total revenue was $267,824m, an increase of $21,453m (9%).
  • Commonwealth adjusted total revenue less transfers to households was $111,321m, an increase of $17,258m (18%).
  • Commonwealth adjusted total revenue less transfers to households as a proportion of GDP, increased from 6.3% to 7.3%.

Graph 1: Commonwealth Taxation Revenues
Graph: COMMONWEALTH ADJUSTED TOTAL REVENUE, AND ADJUSTED TOTAL REVENUE LESS TRANSFERS TO HOUSEHOLDS


In Graph 2, State government taxation revenue increased for the first two measures from 2011–12 to 2012–13:
  • State taxation revenue was $63,497m, an increase of $3,622m (6%).
  • State adjusted taxation revenue was $144,092m, an increase of $4,869m (3%).
  • State adjusted total revenue was $203,403m, a decrease of $2,128m (1%).
  • State adjusted total revenue less transfers to households was $197,008m, a decrease of $2,704m (1%).
  • State adjusted total revenue less transfers to households as a proportion of GDP, decreased from 13.4% to 12.9%.

Graph 2: State Taxation Revenues
Graph: STATE ADJUSTED TOTAL REVENUE, AND ADJUSTED TOTAL REVENUE LESS TRANSFERS TO HOUSEHOLDS


In Graph 3, Local taxation revenue increased for all three measures from 2011–12 to 2012–13:
  • Local taxation revenue was $14,027m, an increase of $825m (6%).
  • Local adjusted taxation revenue was $17,797m, an increase of $343m (2%).
  • Local total revenue less transfers to households was $38,363m, an increase of $2,038m (6%).
  • Local adjusted total revenue less transfers to households as a proportion of GDP, increased from 2.4% to 2.5%.

Graph 3: Local Taxation Revenues
Graph: LOCAL ADJUSTED TOTAL REVENUE, AND ADJUSTED TOTAL REVENUE LESS TRANSFERS TO HOUSEHOLDS