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:
ADJUSTED TAXATION REVENUE
Table 1 shows the derivation of adjusted taxation revenue, for all three levels of government and the multi-jurisdictional general government sector in Australia.
TABLE 1. ADJUSTED TAXATION REVENUE, By Level of Government, and as % of GDP(a)
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
$m
$m
$m
$m
$m
$m
COMMONWEALTH
1. Taxation revenue collected(b)
290 047
318 570
339 448
353 519
357 455
369 921
As % of GDP
20.6
21.4
22.2
22.2
22.1
22.4
As % of total tax revenue
80.5
81.5
81.5
81.1
80.1
79.6
2. Current grants to state government(c)
79 336
83 240
84 193
88 270
95 363
99 364
3. Current grants to local government
14
35
32
66
0
6
4. Current grants to multi-jurisdictional sector(d)
8 250
8 617
9 108
9 634
9 985
10 319
5. Adjusted taxation revenue =1-2-3-4(e)
202 447
226 679
246 114
255 548
252 106
260 233
As % of GDP
14.4
15.2
16.1
16.1
15.6
15.7
As % of total tax revenue
56.2
58.0
59.1
58.6
56.5
56.0
STATE
1. Taxation revenue collected(b)
58 363
59 976
63 689
68 465
73 739
79 053
As % of GDP
4.1
4.0
4.2
4.3
4.6
4.8
As % of total tax revenue
16.2
15.3
15.3
15.7
16.5
17.0
2. Current grants from Commonwealth government
79 336
83 240
84 193
88 270
95 363
99 364
3. Current grants to local government
3 333
4 217
3 737
2 719
4 310
3 516
4. Current grants to multi-jurisdictional sector(d)
569
501
538
464
408
427
5. Adjusted taxation revenue =1+2-3-4(e)
133 797
138 498
143 607
153 553
164 384
174 473
As % of GDP
9.5
9.3
9.4
9.7
10.2
10.5
As % of total tax revenue
37.1
35.4
34.5
35.2
36.8
37.5
LOCAL
1. Taxation revenue collected(b)
12 449
13 202
14 027
14 870
15 779
16 620
As % of GDP
0.9
0.9
0.9
0.9
1.0
1.0
As % of total tax revenue
3.5
3.4
3.4
3.4
3.5
3.6
2. Current grants from Commonwealth government
14
35
32
66
0
6
3. Current grants from state government
3 333
4 217
3 737
2 719
4 310
3 516
4. Adjusted taxation revenue = 1+2+3(e)
15 797
17 454
17 797
17 655
20 090
20 142
As % of GDP
1.1
1.2
1.2
1.1
1.2
1.2
As % of total tax revenue
4.4
4.5
4.3
4.0
4.5
4.3
MULTI-JURISDICTIONAL
1. Taxation revenue collected(b)
-
-
-
-
-
-
2. Current grants from Commonwealth government
8 250
8 617
9 108
9 634
9 985
10 319
3. Current grants from state government
569
501
538
464
408
427
4. Adjusted taxation revenue = 1+2+3(e)
8 819
9 118
9 647
10 098
10 393
10 746
As % of GDP
0.6
0.6
0.6
0.6
0.6
0.6
As % of total tax revenue
2.4
2.3
2.3
2.3
2.3
2.3
TOTAL
Gross Domestic Product
1 410 442
1 491 741
1 527 529
1 589 940
1 617 016
1 654 579
Total taxation revenue collected
360 178
391 025
416 392
436 034
446 137
464 724
As % of GDP
25.5
26.2
27.3
27.4
27.6
28.1
- nil or rounded to zero (including null cells)
(a) Based on GDP at current prices as published in Australian National Accounts: National Income, Expenditure and Product, December Quarter 2016 (Cat. no. 5206.0), Table 36 Expenditure on Gross Domestic Product (GDP), Chain Volume Measures and 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 as a result of consolidation.
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)
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
$m
$m
$m
$m
$m
$m
COMMONWEALTH
1. Adjusted taxation revenue(b)
202 447
226 679
246 114
255 548
252 106
260 233
2. Non-taxation revenue(c)
20 066
20 170
23 040
21 309
24 721
25 774
3. Adjusted total revenue =1+2
222 513
246 849
269 154
276 857
276 827
286 007
As % of GDP
15.8
16.5
17.6
17.4
17.1
17.3
4. Direct benefits to households(d)
105 559
113 444
118 512
126 309
129 925
131 574
5. Indirect benefits to households(e)
36 315
38 864
37 991
39 808
43 293
47 428
6. Adjusted total revenue, less transfers to households =3-4-5
80 638
94 541
112 650
110 741
103 610
107 005
As % of GDP
5.7
6.3
7.4
7.0
6.4
6.5
STATE
1. Adjusted taxation revenue(b)
133 797
138 498
143 607
153 553
164 384
174 473
2. Non-taxation revenue, excluding current grants from Commonwealth government(c)
62 652
66 811
59 958
68 203
67 210
65 842
3. Adjusted total revenue =1+2
196 449
205 309
203 565
221 756
231 594
240 315
As % of GDP
13.9
13.8
13.3
13.9
14.3
14.5
4. Direct benefits to households(d)
1 596
1 454
1 507
1 408
1 283
1 500
5. Indirect benefits to households(e)
4 088
4 459
4 749
5 341
5 340
5 237
6. Adjusted total revenue, less transfers to households = 3-4-5
190 766
199 397
197 309
215 007
224 971
233 578
As % of GDP
13.5
13.4
12.9
13.5
13.9
14.1
LOCAL
1. Adjusted taxation revenue(b)
15 797
17 454
17 797
17 655
20 090
20 142
2. Non-taxation revenue, excluding current grants from Commonwealth and state governments(c)
18 710
19 458
20 784
21 209
21 337
21 977
3. Adjusted total revenue =1+2
34 507
36 912
38 581
38 864
41 427
42 118
As % of GDP
2.4
2.5
2.5
2.4
2.6
2.5
4. Direct and indirect benefits to households(f)
. .
. .
. .
. .
. .
. .
5. Adjusted total revenue, less transfers to households = 3-4
34 507
36 912
38 581
38 864
41 427
42 118
As % of GDP
2.4
2.5
2.5
2.4
2.6
2.5
. . not applicable
(a) Based on GDP at current prices as published in Australian National Accounts: National Income, Expenditure and Product, December Quarter 2016 (Cat. no. 5206.0), Table 36 Expenditure on Gross Domestic Product (GDP), Chain Volume Measures and Current Prices: Annual.
(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.
Commonwealth taxation revenues
Commonwealth Government taxation revenue increased for all measures from 2014-15 to 2015-16:
Commonwealth taxation revenue was $369,921m, an increase of $12,466m (3.5%).
Commonwealth adjusted taxation revenue was $260,233m, an increase of $8,127m (3.2%).
Commonwealth adjusted total revenue was $286,007m, an increase of $9,180m (3.3%).
Commonwealth adjusted total revenue less transfers to households was $107,005m, an increase of $3,395m (3.3%).
Commonwealth adjusted total revenue less transfers to households as a proportion of GDP, increased from 6.4% to 6.5%.
Source(s): Taxation Revenue, Australia
State government taxation revenues
State government taxation revenue increased for all measures from 2014-15 to 2015-16:
State taxation revenue was $79,053m, an increase of $5,314m (7.2%).
State adjusted taxation revenue was $174,473m, an increase of $10,089m (6.1%).
State adjusted total revenue was $240,315m, an increase of $8,721m (3.8%).
State adjusted total revenue less transfers to households was $233,578m, an increase of $8,607m (3.8%).
State adjusted total revenue less transfers to households as a proportion of GDP, increased from 13.9% to 14.1%.
Source(s): Taxation Revenue, Australia
Local taxation revenue
All measures of Local taxation revenue increased from 2014-15 to 2015-16:
Local taxation revenue was $16,620m, an increase of $841m (5.3%).
Local adjusted taxation revenue was $20,142m, an increase of $52m (0.3%).
Local total revenue less transfers to households was $42,118m, an increase of $691m (1.7%).
Local adjusted total revenue less transfers to households as a proportion of GDP, decreased from 2.6% to 2.5%.
Source(s): Taxation Revenue, Australia
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