Unless indicated, all figures presented in this article are current prices and all Australia general government. All Australia general government includes the Commonwealth, state, territory, local general governments, and public universities.
Insights into Government Finance Statistics, Annual, 2023-24
Observations and analysis of the 2023-24 annual Government Finance Statistics data
Released
22/04/2025
Net operating balance
Net operating balance
- is a summary measure that reflects the on-going sustainability of government operations
- is derived by transactions in revenues less transactions in expenses
- is equal to the change in net worth due to transactions.
Australia’s net operating balance was $18.9 billion in 2023-24, down $19.3 billion from the previous year. In 2023-24 Australia’s government revenue rose 5.9% (up $54.9 billion) and expenses rose 8.4% (up $74.2 billion).
Taxation revenue was the largest contributor to the rise in total revenue, driven by strength in personal income tax, excise on crude oil and petroleum products, land tax, GST, and stamp duties on conveyances. Partially offsetting these results, were falls in company tax driven by lower mining profits and royalty income which continues to be at high levels but came off a large rise in the previous financial year with the introduction of progressive coal royalty rates in Queensland. Customs duties on imports fell during 2023-24 because of a decrease in the revenue collected through tobacco excises.
- Taxation revenue increased 6.1% (up $46.2 billion), accounting for 84.2% of the growth in total revenue.
The largest contributors to the growth in total expenses for 2023-24 were social benefits to households in goods and services, employee expenses, current monetary transfers to households and use of goods and services.
- Social benefits to households in goods and services increased 15.5% (up $22.5 billion), accounting for 30.3% of the growth in expenses
- Employee expenses increased 9.4% (up $22.2 billion), accounting for 29.9% of the growth in expenses
- Current monetary transfers to households increased 7.2% (up $10.5 billion), accounting for 14.2% of the growth in expenses
- Use of goods and services increased 4.4% (up $7.8 billion), accounting for 10.5% of the growth in expenses.
Growth in social benefits to households was driven by higher costs for the Aged Care Subsidy, National Disability Insurance Scheme (NDIS), Child Care Subsidy, health benefits and state power bonuses for households. This was the largest increase in social benefits since 2020-21.
Employee expenses rose strongly with increased wages from re-negotiated enterprise bargaining agreements, bonuses and higher levels of staffing for frontline services in addition to higher workers compensation costs. This was the largest increase in employee expenses since 2008-09.
Current monetary transfers to households increased which included growth in aged pension payments and financial support for people with disabilities.
Use of goods and services rose reflecting increased service delivery for community benefits and frontline services.
Revenue
Taxation revenue
Australia’s taxation revenue increased 6.1% (up $46.2 billion) and accounted for around 84.2% of the growth in total revenue in 2023-24. Commonwealth taxation revenue accounted for 68.2% (up $31.5 billion) of the rise in taxation revenue while state and local contributed 31.8% (up $14.7 billion).
Commonwealth taxation revenue
Commonwealth taxation increased 5.1% (up $31.5 billion) in 2023-24, driven by personal income tax, excises on crude oil, and goods and services tax (GST). Partially offsetting the rise in Commonwealth taxation was a decrease in company income tax by 6.9% (down $10.7 billion). Customs duties on imports also fell, decreasing by 19.0% (down $3.2 billion).
Personal income tax increased 11.9% (up $33.2 billion) as a result of strong growth in wages (a) and an increase in employment (b).
Excises on crude oil LPG and petroleum products increased 15.8% (up $3.4 billion) which continued the rise from 2022-23, as the last remaining impacts of a temporary reduction of fuel excise ended on the 28 September 2022.
GST increased 2.8% (up $2.4 billion) as prices (d) and the quantity of retail sales of goods and services rose during 2023-24 (e).
Company income tax fell 6.9% (down $10.7 billion) in line with mining profit falls in company gross operating profits (e).
Customs duties on imports fell 19.0% (down $3.2 billion). The Commonwealth Final Budget Outcome for 2023-24 reported that company tax receipts were $1.0 billion lower than estimated and was driven by tobacco excises (f).
- Source: Wage Price Index, Australia, June 2024 | Australian Bureau of Statistics
- Source: Labour Force, Australia, February 2025 | Australian Bureau of Statistics
- Source: Excise data - Historical Excise Rates | data.gov.au
- Source: Consumer Price Index, Australia, December Quarter 2024 | Australian Bureau of Statistics
- Source: Business Indicators, Australia, December 2024 | Australian Bureau of Statistics
- Source: Commonwealth Final Budget Outcome 2023-24 | Department of Finance
All other sources of Commonwealth taxation revenue are available in Table 1 of the Taxation Revenue, Australia, 2023-24 financial year release.
State and local government taxation revenue
State and local taxation revenue increased 10.7% (up $14.7 billion) in 2023-24 and was led by state payroll taxes, land taxes and stamp duties.
Payroll tax rose 13.9% (up $4.6 billion) due to continued strength in the labour market (a) and wage growth (b).
Land tax rose 23.2% (up $3.4 billion) and includes the COVID Debt Levy on land holdings in Victoria and stronger than expected growth in land values in New South Wales (c) (d).
Stamp duties on conveyances rose 8.0% (up $2.3 billion) and follows a strong fall during 2022-23 as the total value and number of dwelling transfers rose during 2023-24 (e).
- Source: Labour Force, Australia, June 2024 | Australian Bureau of Statistics
- Source: Wage Price Index, Australia, June 2024 | Australian Bureau of Statistics
- Source: Financial Report (inc. Quarterly Financial Report No. 4) | Victorian Department of Treasury and Finance
- Source: Report on the state finances 2023-24 | NSW Treasury
- Source: Total Value of Dwellings, June Quarter 2024 | Australian Bureau of Statistics
Royalties
Australia’s royalty income decreased by 19.6% ($7.3 billion) in 2023-24 as coal prices fell due to lower global demand for metallurgical coal and followed record export price levels in 2022-23 (a). Key drivers of the result in royalty income were:
- Queensland (down $5.4 billion, 29.9%)
- NSW (down $1.6 billion, 34.4%)
- Commonwealth (down $1.0 billion, 49.1%)
- WA (up $0.9 billion, 8.0%).
While royalty income decreased in 2023-24, levels remain elevated for Queensland and Western Australia compared to 2020-21 due to commodity prices (a) and introduction to the Queensland government’s coal royalty structure in 2022.
Expenses by purpose
The Classification of the Functions of Government (COFOG) disaggregates government expenditure by the purpose for which the funds are used. The classification of the functions of government - Australia (COFOG-A) are outlined in the Australian System of Government Finance Statistics: Concepts, Sources and Methods.
Australian expenses in 2023-24 were $959.7 billion.
All expense categories, other than environmental protection, increased in 2023-24. The main contributors to the growth in expenses were:
- $33.7 billion rise in social protection (up 13.5%)
- $11.4 billion rise in general public services (up 12.4%)
- $9.9 billion rise in health (up 5.4%)
- $8.9 billion rise in education (up 6.8%)
- $3.3 billion rise in defence (up 7.3%)
- $3.0 billion rise in public order and safety (up 6.5%).
Social protection
Social protection increased 13.5% (up $33.7 billion) and accounted for 29.5% of total general government expenses in 2023-24. The increase in social protection was driven by government payments for old age, disability, and family and children.
Old age payments increased 15.6% (up $14.9 billion) including an increase in the Aged Care Subsidy, age pension, and military compensation payments (a). The growth includes increases to award wages for nurses and aged care workers following the Fair Work Commission’s ruling increase to award wages for nurses and aged care workers by 15%.
Disability payments increased 14.2% (up $9.9 billion) reflecting an increase in individual support costs and the number of people with disability participating in the NDIS (b).
Family and children payments increased 14.7% (up $7.1 billion) due to increased family tax and other assistance benefits. Child Care Subsidy rose following the introduction of higher Child Care Subsidy rates and additional support for second and subsequent children (c).
General public services
General public services grew, increasing 12.4% (up $11.4 billion) and accounted for 10.8% of total general government expenses in 2023-24. The increase in general public services was driven by public debt transactions.
Public debt transactions increased 13.3% (up $7.1 billion), driven by interest expenses, which rose due to higher interest rates, additional government borrowing and accrued interest on defined benefit superannuation across Australia.
Health
Health increased 5.4% (up $9.9 billion) and accounted for 20.1% of total general government expenses in 2023-24. The increase in health was driven by hospital services and community health services. The increase in health expenses was partially offset by a fall in public health services following a fall in COVID-19 vaccinations and fewer free rapid antigen tests (RATs) during 2023-24.
Hospital services and community health services increased 7.7% (up $4.8 billion) and 7.0% (up $3.7 billion) respectively. The increase will include the impact of pay rises through negotiated enterprise bargaining agreements, bonuses and increases to full-time-equivalent (FTE) employees to meet service demand. Additionally, community health services expenses grew following increases to the indexation rate for the Medicare Benefits Schedule and bulk billing incentive payments.
Education
Education increased 6.8% (up $8.9 billion) and accounted for 14.5% of total general government expenses in 2023-24. This was driven by broad increases in expenses across school and tertiary sectors.
Pre-primary, primary and secondary education increased 7.7% (up $5.4 billion) and were the largest component of the increase in education expenses. Employee costs for government schools includes the impact of pay rises through negotiated enterprise bargaining agreements, cost of living adjustments as well as the introduction of additional pre-school, kindergarten and early childcare benefits across various states.
Tertiary education increased 10.7% (up $4.6 billion) contributed to by higher employee costs and higher international student numbers (a) compared to the previous year. This follows the reduction of international student numbers caused by the COVID-19 pandemic and international travel restrictions.
Defence
Defence increased 7.3% (up $3.3 billion) and accounted for 5.1% of total general government expenses in 2023-24. The increase was driven by higher supplier expenses due to sustainment costs and inflationary pressures (a), depreciation and amortisation expenses due to accelerated depreciation of the useful life of Defence platforms and an increase to Defence salaries.
Public order and safety
Public order and safety increased 6.5% (up $3.0 billion) and accounted for 5.1% of total general government expenses in 2023-24. This was driven by increases in police services and prisons expenses.
Police services increased 7.9% (up $1.2 billion) including additional police officers and funding for law enforcement.
Prison expenses increased by 8.3% (up $0.7 billion) in line with a growing prison population (a) and costs for maintaining existing facilities.
Employee expenses
Australia's employee expenses (a) increased 9.4% (up $22.2 billion) in 2023-24, which was the largest increase to employee expenses in the Government Finance Statistics time series back to 1998-99. Growth was driven by wage increases from newly negotiated enterprise bargaining agreements, changes to public sector wage caps, higher levels of staffing (i.e. frontline services in health, education and public order and safety) and workers’ compensation expenses. Employee expenses accounted for 26.8% of total general government expenses in 2023-24.
State government employee expenses increased 8.0% (up $12.6 billion) for 2023-24. Other contributors to the increase in other employee expenses were:
- Commonwealth up 15.0% (up $6.4 billion)
- local government up 7.1% (up $1.2 billion)
- universities up 10.5% (up $2.0 billion)
- Employee expenses is comprised of superannuation, wages and salaries, workers’ compensation and other employee expenses
- Source: Wage Price Index, Australia, June 2024 | Australian Bureau of Statistics
- Source: Public Sector employment and earnings, Australia, 2023-24 | Australian Bureau of Statistics
General government debt
For further information on debt statistics in Government Finance Statistics:
- Government Finance Statistics, Annual methodology for additional information on the presentation of debt statistics.
- Government Finance Statistics, Annual, 2023-24 Key tables for full presentation of gross and net debt statistics.
Net debt is the sum of government securities and other interest-bearing liabilities, minus the sum of cash and deposits, advances paid and investments, loans, and placements. This can be used to assess the financial position and ability of governments to meet debt obligations.
Australia net debt (L2) (a) was $846.6 billion in 2023-24. This was an increase of $62.8 billion (up 8.0%) from 2022-23.
Net debt (L2) as a percentage of GDP can be used as an indicator of the ability of governments to make future payments on its debt. Net debt (L2) as a percentage of GDP (b) rose from 30.5% in 2022-23 to 31.7% in 2023-24.
- L2 is comparable to government reporting of net debt under Australian accounting standards.
- Source: December quarter 2024 Australian National Accounts: Nation Income, Expenditure, and Product, Table 36 | Australian Bureau of Statistics
The main contributors to the 8.0% increase in net debt (L2) in 2023-24 were:
- 26.5% rise in total state net debt (up $57.3 billion)
- 0.8% rise in National (a) net debt (up $4.8 billion).
- National includes both the Commonwealth and Control not further defined (n.f.d.) levels of government. The control n.f.d. sector contains units where jurisdiction is shared between two or more governments, or classification of a unit to a jurisdiction is otherwise unclear. The main types of units currently falling into this category are the public universities.
Matrix of general government net debt and other liabilities
The debt matrix allows analysts and policymakers to examine different measures of debt and other liabilities, depending on their specific focus, such as liquidity or long-term budget sustainability.
In the Australian context, L2 aligns with government debt reporting under Australian accounting standards and the Uniform Presentation Framework (UPF), which is utilized in Australian Government and state budget papers. L4 corresponds to the IMF’s GFSM 2014 definition of headline net public sector debt.
| National general government (b) | Total state general government | Total local general government | All Australia general government | ||
|---|---|---|---|---|---|
| $m | $m | $m | $m | ||
| Debt securities | 750,063 | 38,434 | -16,717 | 771,780 | |
| plus Loans | -63,365 | 262,158 | 5,842 | 204,635 | |
| Equals L1 | 686,698 | 300,592 | -10,875 | 976,415 | |
| plus SDRs | 8,564 | 0 | 0 | 8,564 | |
| plus Currency and deposits | -98,388 | -26,446 | -13,577 | -138,412 | |
| Equals L2 (c) | 596,874 | 274,146 | -24,452 | 846,567 | |
| plus Other accounts payable | 100,387 | 94,981 | 6,466 | 201,834 | |
| Equals L3 | 697,260 | 369,127 | -17,986 | 1,048,401 | |
| plus Insurance and superannuation | 314,832 | 114,382 | 0 | 429,215 | |
| Equals L4 (d) | 1,012,093 | 483,509 | -17,986 | 1,477,616 | |
| plus Financial derivatives | -27,698 | -1,637 | -119 | -29,454 | |
| Equals L5 (e) | 984,394 | 481,872 | -18,105 | 1,448,161 | |
| plus Equities | -264,930 | -524,516 | -9,585 | -799,031 | |
| Equals L6 (f) | 719,465 | -42,644 | -27,690 | 649,131 | |
a. A positive value in this matrix indicates that the relevant stock of liabilities is greater than its corresponding stock of financial assets (an indebted position). A negative value indicates the opposite.
b. National includes both the Commonwealth and Control not further defined (n.f.d.) levels of government. The control n.f.d. sector contains units where jurisdiction is shared between two or more governments, or classification of a unit to a jurisdiction is otherwise unclear. The main types of units currently falling into this category are the public universities.
c. L2 is comparable to government reporting of net debt under Australian Accounting Standards.
d. L4 is comparable to the IMF GFSM 2014 concept of headline net public sector debt.
e. L5 is comparable to the Australian AGFS15 concept of headline net public sector debt.
f. L6 includes other liabilities and is not included in headline measures of net public sector debt.