The ABS continues to consult with stakeholders and subject matter experts to determine appropriate classifications for new government initiatives. These classifications are based on well-established conceptual frameworks (a), which ensure consistent recording of these policies across macroeconomic statistics, particularly in relation to GFS and the National Accounts (NA).
Classification of government policies in Government Finance Statistics
New government policies that are likely to influence Government Finance Statistics in the September quarter 2023.
Released
5/12/2023
Introduction
Key government initiatives impacting September quarter
Government fiscal support through the quarter continued to target provision of assistance to households, businesses and non-profit institutions.
Social benefit expenditure in the September quarter included expenditure through the National Energy Bill Relief program and ongoing expansions to Commonwealth social programs.
State-based public sector wages contributed to outcomes for general government final consumption expenditure.
Classification of government policies
The classification of government policies impacting the September quarter 2023 is summarised in the table below. The policies are grouped into three broad categories (b) and align with the ABS GFS economic classifications.
- Provision of assistance to households, corporations, unincorporated enterprises, and non-profit institutions.
- Relaxation of tax and non-tax revenue obligations.
- Increased healthcare and frontline services spending.
Classification of selected policies across Commonwealth and State levels of government
Types of policies | Examples of policies | Classification in Government Finance Statistics (GFS) and National Accounts (NA) (c) |
Provision of assistance to households, corporations, unincorporated enterprises, and non-profit institutions | ||
National Energy Price Relief Plan | State: (d) State and Commonwealth jointly funded up to a total of $3b of electricity bill relief delivered to eligible households and businesses (all). | GFS: Social benefits to households in goods and services; other subsidies on production NA: GDP (E) - Government final consumption expenditure, GDP (I) - Other subsidies on production |
Cheaper Childcare | Commonwealth: Childcare subsidy rates increase from 85 per cent to 90 per cent for families earning less than $80,000. Subsidy rates will taper down one percentage point per additional $5,000 in income until it reaches zero per cent for families earning $530,000. | GFS: Social benefits to households in goods and services NA: GDP (E) - Government final consumption expenditure |
Aged Care Workers Salary Increase | Commonwealth: 15% increase of award wages for direct services employees in the aged care industry. | GFS: Social benefits to households in goods and services NA: GDP (E) - Government final consumption expenditure |
Relaxation of tax and non-tax revenue obligations | ||
Small Business Energy Incentive | Commonwealth: Tax relief and support up to 3.8 million eligible small businesses to invest in electrifying their heating and cooling systems, installing batteries and upgrading to high‑efficiency electrical goods. | GFS: Taxes on income NA: Income accounts – current taxes on income |
Small Business Instant Asset Write-off | Commonwealth: Support to small businesses to invest by providing $290 million in cash flow support through the $20,000 instant asset write‑off. | GFS: Taxes on income NA: Income accounts – current taxes on income |
Technology Investment Boost and Skills and Training Boost | Commonwealth: Small and medium businesses with an annual turnover of less than $50 million are eligible for a 20 per cent deduction for eligible expenditure on external training of employees by providers registered in Australia. Businesses also have access to a bonus 20 per cent deduction to support the uptake of digital technologies. | GFS: Taxes on income NA: Income accounts – current taxes on income |
COVID Tax Levy | State: Businesses with a national payroll of more than $10 million will pay an additional payroll tax of 0.5 per cent, or 1 per cent if their national payroll exceeds $100 million (VIC). | GFS: Other taxes on production NA: GDP (I) - taxes on production and imports |
First Home Buyers Assistance Scheme | State: Eligible first home buyers to receive a full exemption or reduced rate of transfer duty on the purchase of a new or existing home or vacant land (NSW). | GFS: Taxes on products GDP (P) - Taxes on products |
SA Stamp Duty Relief for First Home Buyers | State: No stamp duty payable on new homes valued below $650,000, or vacant land below $400,000. Reduced stamp duty on new homes valued below $700,000 or vacant land below $450,000 (SA). | GFS: Taxes on products GDP (P) - Taxes on products |
Increased healthcare and frontline services spending | ||
NSW Public Sector Pay Increase | State: 4.0% pay increase and 0.5% super increase for over 400,000 public sector employees (NSW). | GFS: Wages, salaries, and supplements, superannuation expenses NA: GDP (E) - Government final consumption expenditure; GDP(I) – Compensation of employees |
WA Firefighters Pay Increase and Cost of Living Payment | State: Firefighters will receive a wage increase of $60 per week or 3% per annum – whichever results in a higher outcome – with backpay to 9 June 2023 and a $3,000 cost of living payment (WA). | GFS: Wages, salaries, and supplements NA: GDP (E) - Government final consumption expenditure; GDP(I) – Compensation of employees |
TAS Doctors pay increase and Cost of Living Payment | State: Doctors will receive a 3.5 per cent pay rise from the first full pay period on or after 1 July 2023. Doctors will also receive a $1,000 cost of living payment (TAS). | GFS: Wages, salaries, and supplements NA: GDP (E) - Government final consumption expenditure; GDP(I) – Compensation of employees |
ACT Public Sector Enterprise Bargaining Agreement – cost of living supplement | State: A cost of living supplement of $1,250 on the commencement of the new agreement (ACT). | GFS: Wages, salaries, and supplements NA: GDP (E) - Government final consumption expenditure; GDP(I) – Compensation of employees |
Footnotes - Show all
- These frameworks are supported by international standards such as the International Monetary Fund (IMF) Government Finance Statistics Manual 2014 (GFSM 2014) and the System of National Accounts 2008 (2008 SNA)
- The categories are broadly based on the recommendations in “COVID-19: How to Record Government Policy Interventions in Fiscal Statistics” (IMF, 2020)
- NA includes the gross domestic product (GDP) accounts, which are measured using the expenditure approach (GDP (E)), the income approach (GDP (I)) or the production approach (GDP (P)). NA also includes income accounts, capital accounts, financial accounts, and balance sheets
- ‘States’ refers to the state sector in macroeconomic statistics which covers all eight state and territory jurisdictions in Australia