5506.0 - Taxation Revenue, Australia, 2010-11 Quality Declaration 
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 17/04/2012   
   Page tools: Print Print Page Print all pages in this productPrint All

APPENDIX 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

An analysis along similar lines was first published in Australian Economic Indicators, March 2006 (cat. no. 1350.0), in a feature article entitled "Recent Taxation Revenue Trends in Australia". This article included information on the introduction of The New Tax System on 1 July 2000.


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)

2005–06
2006–07
2007–08
2008–09
2009–10
2010–11
$m
$m
$m
$m
$m
$m

COMMONWEALTH

1. Taxation revenue collected(b)
245 222
261 988
285 672
278 002
267 171
288 075
As % of GDP
24.7
24.2
24.3
22.2
20.7
20.6
As % of total tax revenue
82.4
81.9
82.0
82.0
80.3
80.5
2. Current grants to state government(c)
61 393
63 873
69 480
73 087
75 682
79 978
3. Current grants to local government
81
56
89
46
12
14
4. Current grants to multi–jurisdictional sector(d)
5 556
5 589
7 347
6 691
8 808
8 250
5. Adjusted taxation revenue =1–2–3–4(e)
178 192
192 470
208 756
198 178
182 669
199 832
As % of GDP
17.9
17.8
17.8
15.8
14.1
14.3
As % of total tax revenue
59.8
60.2
59.9
58.5
54.9
55.8

STATE

1. Taxation revenue collected(b)
44 248
48 874
53 134
50 631
54 536
58 121
As % of GDP
4.4
4.5
4.5
4.0
4.2
4.2
As % of total tax revenue
14.9
15.3
15.3
14.9
16.4
16.2
2. Current grants from Commonwealth government
61 393
63 873
69 480
73 087
75 682
79 978
3. Current grants to local government
1 976
2 102
2 220
3 300
2 883
3 357
4. Current grants to multi-jurisdictional sector(d)
305
287
330
462
499
569
5. Adjusted taxation revenue =1+2–3–4(e)
103 360
110 358
120 065
119 956
126 836
134 174
As % of GDP
10.4
10.2
10.2
9.6
9.8
9.6
As % of total tax revenue
34.7
34.5
34.5
35.4
38.1
37.5

LOCAL

1. Taxation revenue collected(b)
8 726
9 405
10 139
10 896
11 607
12 408
As % of GDP
0.9
0.9
0.9
0.9
0.9
0.9
As % of total tax revenue
2.9
2.9
2.9
3.2
3.5
3.5
2. Current grants from Commonwealth government
81
56
89
46
12
14
3. Current grants from state government
1 976
2 102
2 220
3 300
2 883
3 357
4. Adjusted taxation revenue = 1+2+3(e)
10 783
11 563
12 447
14 242
14 503
15 780
As % of GDP
1.1
1.1
1.1
1.1
1.1
1.1
As % of total tax revenue
3.6
3.6
3.6
4.2
4.4
4.4

TOTAL

Gross Domestic Product
994 803
1 083 060
1 175 949
1 252 218
1 293 380
1 400 126
Total taxation revenue collected
297 766
319 759
348 347
338 905
332 649
357 917
As % of GDP
29.9
29.5
29.6
27.1
25.7
25.6

(a) As published in Australian National Accounts, December Quarter 2011 (cat no 5206.0).
(b) According to GFSM 2001.
(c) Part of the Commonwealth grants paid to states are onpassed to local government.
(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 does not equal the sum of adjusted taxation revenue 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)

2005–06
2006–07
2007–08
2008–09
2009–10
2010–11
$m
$m
$m
$m
$m
$m

COMMONWEALTH

1. Adjusted taxation revenue(a)
178 192
192 470
208 756
198 178
182 669
199 832
2. Non-taxation revenue(b)
15 563
15 990
17 619
20 281
24 843
20 858
3. Adjusted total revenue =1+2
193 755
208 460
226 375
218 459
207 512
220 690
As % of GDP
19.5
19.2
19.3
17.4
16.0
15.8
4. Direct benefits to households(c)
76 997
81 138
86 078
111 548
98 490
105 559
5. Indirect benefits to households(d)
22 789
25 090
27 606
30 767
33 548
36 315
6. Adjusted total revenue, less transfers to households =3–4–5
93 969
102 233
112 690
76 144
75 473
78 815
As % of GDP
9.4
9.4
9.6
6.1
5.8
5.6

STATE

1. Adjusted taxation revenue(a)
103 360
110 358
120 065
119 956
126 836
134 174
2. Non-taxation revenue, excluding current grants from Commonwealth government(b)
36 707
40 922
38 549
50 157
64 333
62 194
3. Adjusted total revenue =1+2
140 066
151 280
158 613
170 113
191 169
196 368
As % of GDP
14.1
14.0
13.5
13.6
14.8
14.0
4. Direct benefits to households(c)
1 003
1 046
1 350
1 687
1 948
1 854
5. Indirect benefits to households(d)
2 283
2 441
2 516
2 751
3 111
3 566
6. Adjusted total revenue, less transfers to households = 3–4–5
136 780
147 793
154 748
165 676
186 110
190 948
As % of GDP
13.7
13.6
13.2
13.2
14.4
13.6

LOCAL

1. Adjusted taxation revenue(a)
10 783
11 563
12 447
14 242
14 503
15 780
2. Non-taxation revenue, excluding current grants from Commonwealth and state governments(b)
13 006
14 576
15 347
16 464
17 516
17 723
3. Adjusted total revenue =1+2
23 789
26 139
27 794
30 706
32 019
33 503
As % of GDP
2.4
2.4
2.4
2.5
2.5
2.4
4. Direct and indirect benefits to households(e)
. .
. .
. .
. .
. .
. .
5. Adjusted total revenue, less transfers to households = 3–4
23 789
26 139
27 794
30 706
32 019
33 503
As % of GDP
2.4
2.4
2.4
2.5
2.5
2.4

. . not applicable
(a) As published in Australian National Accounts, December Quarter 2011 (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.


All four measures of Commonwealth government taxation revenues increased in 2010–11:
  • Commonwealth taxation revenue was $288,075m, an increase of $20,904m (7.8%)
  • Commonwealth adjusted taxation revenue was $199,832m, an increase of $17,163m (9.4%)
  • Commonwealth adjusted total revenue was $220,690m, an increase of $13,178m (6.4%)
  • Commonwealth adjusted total revenue less transfers to households was $78,815m, an increase of $3,342m (4.4%)
  • Commonwealth adjusted total revenue less transfers to households, as a proportion of GDP, decreased to from 5.8% to 5.6% in 2010–11.
Graph 1 : Commonwealth Taxation Revenues
Graph: Graph 1 shows commonwealth taxation revenues from 2005-06 to 2010-11


As shown below in Graph 2, state government taxation revenues increased for all four measures in 2010–11:
  • State taxation revenue was $58,121m, an increase of $3,585m (6.6%)
  • State adjusted taxation revenue was $134,174m, an increase of $7,338m (5.8%)
  • State adjusted total revenue was $196,368m, an increase of $5,199m (2.7%)
  • State adjusted total revenue less transfers to households was $190,948m, an increase of $4,838m (2.6%)
  • State adjusted total revenue less transfers to households, as a proportion of GDP, decreased from 14.4% to 13.6% in 2010–11.

Graph 2: State Taxation Revenues
Graph: Graph 2 shows State taxation revenues from 2005-06 to 2010-11


In Graph 3, Local taxation revenue increased for all three measures in 2010–11:
  • Local taxation revenue was $12,408m, an increase of $801m (6.9%)
  • Local adjusted taxation revenue was $15,780m, an increase of $1,277m (8.8%)
  • Local total revenue less transfers to households was $33,503m, an increase of $1,484m (4.6%)
  • Local adjusted total revenue less transfers to households as a proportion of GDP, decreased from 2.5% to 2.4%.

Graph 3 : Local Taxation Revenues
Graph 3 shows Local taxation revenue from 2005-06 to 2010-11