TOTAL TAXATION REVENUE
Total taxation revenue collected in Australia rose 1.5% from $213,741 million in 2000-2001 to $216,915 million in 2001-02 due mainly to increased revenue from:
These increases in revenue were offset by large decrease in revenue from income taxes levied on enterprises.
- income taxes levied on individuals and
- nil or rounded to zero (including null cells)
Proportion of gross domestic product (GDP)
Total taxation revenue, as a percentage of GDP, decreased from 31.9% in 2000-2001 to 30.4% in 2001-02. Taxation revenue for the Commonwealth, as a percentage of GDP, decreased from 26.0% in 2000-2001 to 24.9% in 2001-02, while state and local taxation revenue also fell from 5.8% of GDP in 2000-2001 to 5.6% in 2001-02.
Commonwealth government taxation revenue, including taxes from other levels of government and Commonwealth public corporations, rose 1.3% from $175,010 million in 2000-2001 to $177,237 million in 2001-02. In 2001-02, Commonwealth taxation comprised 81.7% of taxation revenue from all levels of government. For 2001-2002, the personal income tax figure also includes income taxes on non-residents. The following graph shows Commonwealth taxation revenue derived from selected taxes, as a percentage of GDP, for the period 1998-99 to 2001-02.
State and local revenue
State and local government taxation revenue including taxes received from other levels of government and taxes on public corporations, increased 2.6% from $38,995 million in 2000-2001 to $40,002 million in 2001-02. State and local government taxation comprised 18.4% of total taxation revenue. The following graph shows state and local government taxation revenue derived from selected taxes, as a percentage of GDP, for the period 1998-99 to 2001-02.
MAJOR COMPONENTS OF TOTAL TAXATION
Change from 2000-01 to 2001-02
Contribution to total taxes
|Taxes on income|
|Income taxes levied on individuals|
|Income taxes levied on enterprises|
|Income taxes levied on non-residents|
|Employers payroll taxes|
|General taxes (payroll tax)|
|Other employers labour force taxes|
|Taxes on property|
|Taxes on immovable property|
|Taxes on financial and capital transactions|
|Taxes on provision of goods and services|
|General taxes (sales tax)|
|Goods and services tax (GST)|
|Excises and levies|
|Taxes on international trade|
|Taxes on gambling|
|Taxes on insurance|
|Taxes on the use of goods and performance of activities|
|Motor vehicle taxes|
Per capita taxation
The amount of taxation per head of resident population, by jurisdiction, is shown in the following table below.
Note: Based on Australian Demographic Statistics, September quarter 2002 (cat. no. 3101.0)
MAJOR FACTORS AFFECTING TAXATION REVENUE IN 2001-02
The amount of taxation revenue collected in a particular year can be affected by a number of factors including:
TAXATION PER CAPITA
|Level of government|
|State and local|
|New South Wales|
|Australian Capital Territory|
- a change in the rate of a tax or levy;
- the introduction or abolition of a tax or levy;
- one-off special payments;
- additional or fewer collection periods during the financial year;
- changes to payment arrangements and
- other factors such as economic conditions, population growth, etc.
Major factors affecting taxation revenue in 2001-2002 are outlined below. This information has been derived from budget statements and annual reports published for the Commonwealth and state governments.
TAXES ON INCOME
- Income tax levied on individuals rose by around $9.8 billion or 11.3%. This growth was caused by $2.0 billion in other withholding taxes levied on non-residents, previously reported under taxes levied on non-residents now being included in other PAYG tax collections which are classified as Personal Income Taxes; PAYG withholding collections on individuals increasing by $3.9 billion and revenue from the Medicare Levy increased by $3 billion, both as a result of higher growth in wages and increased employment. Lower tax refunds also contributed to the growth of personal income tax collections.
- Company income taxes fell by $10.4 billion in 2001-2002. The factors causing this decrease are a higher concentration of payments in 2000-2001 than 2001-2002, due to 2000-2001 being the transition year to the new tax system, and the lowering of the company tax rate from 34% to 30%.
- Income taxes paid by superannuation funds decreased by $1.3 billion. This largely reflects the bringing forward of superannuation tax payments under PAYG in 2000-2001. Lower net capital gains by superannuation funds were also responsible for this decrease.
TAXES ON PROVISION OF SERVICES
- Withholding taxes on non-residents are no longer separately identifiable under PAYG and are now covered by personal income taxes.
- Revenue from the goods and services tax (GST) increased in 2001-2002 by $3.5 billion or 12.9%.
- Sales tax decreased by $1.2 billion as a result of the phasing out of the Wholesale sales tax scheme under the new tax system arrangements.
- Excise duties increased by $611 million during 2001-2002 because of higher fuel and diesel excises resulting from higher crude oil prices relative to the previous year and taxpayers' preference for using Diesel Fuel Rebate scheme instead of the upfront duty-free option.
- The $80 million in levies on statutory corporations relates to the Universal Services Levy imposed on telecommunications companies for the purpose of funding services in regional Australia.
TAXES ON EMPLOYERS' PAYROLL AND LABOUR FORCE
- Taxes on international trade increased by $608 million, reflecting an increased level of imports that attract customs duty.
TAXES ON PROPERTY
- The total taxation revenue for all states relating to employers payroll taxes increased in 2001-2002 by $174 million. This increase is linked to an overall increase in employment, although for Tasmania and the ACT, their individual totals declined.
- Financial institutions transaction taxes were down in all states during 2001-2002. This is due to abolition of Financial Institutions Duty and Debits Tax since July 1, 2000.
TAXES ON PROVISION OF GOODS AND SERVICES
- Stamp duties an conveyances increased from the previous year by $2.0 billion as a direct result of the residential housing boom.
- Taxes on insurance grew by $561 million in 2001-2002 mainly as a result of the increase in the tax base (premiums) since the collapse of HIH.
TAXES ON USE OF GOODS AND PERFORMANCE OF ACTIVITIES
- Taxes on gambling machines increased from $2.1 billion in 2000-2001 to $2.2 billion in 2001-2002. The biggest individual increase for this item was in Victoria where it grew by $102 million. This was due to an additional $1,200 levy on gambling machines in that state.
- The amount of revenue earned by the states from Franchise taxes shrunk from $325 million in 2000-2001 to just $13 million in 2001-2002.