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5506.0 - Taxation Revenue, Australia, 2004-05  
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 29/03/2006   
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NOTES


ABOUT THIS PUBLICATION

This publication contains statistics of taxation revenue collected by all levels of government in Australia for the period 1999-2000 to 2004-05. The taxation revenue statistics presented are for the general government sector and include taxes received from public corporations (i.e. government owned/controlled corporations). The amount of taxes received from these corporations is provided in the relevant tables.



CHANGES IN THIS ISSUE

As announced in December 2005 (refer to Government Finance Statistics, Australia, Quarterly, September 2005, Catalogue No. 5519.0.55.001), the ABS has introduced a change in the treatment of Fringe Benefits Tax (FBT). These amounts are now classified as part of compensation of employees in the National Accounts, and as part of taxes on income in GFS. Therefore FBT no longer appears as an Employer Payroll tax in this publication.


In previous releases, FBT was the sole component of intergovernmental taxes between the Commonwealth and other levels of government. As a result of the attribution of FBT to income, rather than production, intergovernmental taxes now appear as nil in Tables 2 and 3.


This changed treatment also results in a change in the level of Fringe Benefits Tax revenue through the accruals time series. Prior to this change, FBT paid to the Commonwealth by agencies and departments in the general government sector was consolidated in the Commonwealth results. As a result of this change, and consistent with GFS consolidation procedures, all FBT revenues are now recorded as coming from the household sector. As a result the FBT revenue series is at a higher level, because consolidation does not impact on the level of taxes being paid from the household sector to the Commonwealth.



TERMINOLOGY

In this publication, the term 'state' includes the two territories. Therefore, 'state' refers to 'state and territory' and 'state and local' refers to 'state, territory and local'.



INQUIRIES

For further information about these and related statistics, contact the National Information and Referral Service on 1300 135 070 or Jonathan Sim on Canberra (02) 6252 5735.



SUMMARY OF FINDINGS


TOTAL TAXATION REVENUE

Summary

A distinctive feature of the Australian federal system is that the Commonwealth government levies and collects all income tax, from individuals as well as from enterprises. It also collects a portion of other taxes, including taxes on the provision of goods and services. The revenue base of state governments consists of taxes on property, on employers' payrolls, and on the provision and use of goods and services. The sole source of taxation revenue for local governments is taxes on property.


Total taxation revenue collected in Australia rose $21,266 million, 8.3%, between 2003-04 and 2004-05. Taxes on income increased by $17,265 million and taxes on the provision of goods and services increased $2,939 million.

TOTAL TAXATION REVENUE

1999-2000
2000-01
2001-02
2002-03
2003-04
2004-05
$m
$m
$m
$m
$m
$m

COMMONWEALTH GOVERNMENT

Taxes on income
118 227
124 602
123 065
134 432
145 709
162 974
Employers' payroll taxes
97
121
156
253
381
292
Taxes on property
10
12
12
13
13
14
Taxes on the provision of goods and services
34 365
50 186
53 883
59 371
62 646
64 997
Taxes on the use of goods and performance of activities
453
670
722
757
811
854
Total taxation revenue
153 153
175 591
177 838
194 827
209 560
229 131

STATE GOVERNMENTS

Taxes on income
-
-
-
-
-
-
Employers' payroll taxes
8 951
9 503
9 671
10 163
10 839
11 996
Taxes on property
12 090
12 411
12 434
14 166
16 683
16 043
Taxes on the provision of goods and services
6 576
5 987
6 548
6 977
7 275
7 865
Taxes on the use of goods and performance of activities
10 276
4 776
4 689
5 100
5 597
5 745
Total taxation revenue
37 893
32 677
33 342
36 406
40 394
41 648

LOCAL GOVERNMENTS

Taxes on income
-
-
-
-
-
-
Employers' payroll taxes
-
-
-
-
-
-
Taxes on property
6 017
6 390
6 758
7 224
7 673
8 146
Taxes on the provision of goods and services
-
-
-
-
-
-
Taxes on the use of goods and performance of activities
-
-
-
-
-
-
Total taxation revenue
6 017
6 390
6 758
7 224
7 673
8 146

ALL LEVELS OF GOVERNMENT

Taxes on income
118 227
124 602
123 065
134 432
145 709
162 974
Employers' payroll taxes
8 781
9 336
9 522
10 093
10 865
11 906
Taxes on property
18 112
18 812
19 202
21 402
24 368
24 194
Taxes on the provision of goods and services
40 941
56 173
60 431
66 348
69 922
72 861
Taxes on the use of goods and performance of activities
10 727
5 445
5 411
5 854
6 405
6 598
Total taxation revenue
196 789
214 369
217 631
238 129
257 268
278 534

- nil or rounded to zero (including null cells)


Taxes on income totalled $162,974 million in 2004-05 and comprised 58.5% of total taxation revenue for all levels of government. Taxes on the provision of goods and services, including goods and services tax (GST), totalled $72,861 million in 2004-05 and comprised 26.2% of total taxation revenue for all levels of government.


Commonwealth Government Taxation Revenue

Commonwealth government taxation revenue, including taxes from other levels of government and Commonwealth public corporations, rose 9.3% from $209,560 million in 2003-04 to $229,131 million in 2004-05. In 2004-05, Commonwealth taxation represented 82.3% of taxation revenue for all levels of government. The following graph shows the changing proportions of different taxation revenue categories to total taxation revenue for the Commonwealth government. In ABS government finance statistics GST is recorded as a Commonwealth government tax. The impact of the introduction of the GST in 2000-01 can be seen in the graph below.

PERCENTAGE OF COMMONWEALTH GOVERNMENT TAXATION REVENUE
Graph: Percentage of Commonwealth Government Taxation Revenue



State Government Taxation Revenue

State government taxation revenue including taxes from other levels of government and on public corporations (but excluding GST revenue - which is recorded in GFS as a grant from the Commonwealth to the states) increased 3.1% from $40,394 million in 2003-04 to $41,648 million in 2004-05. Taxes on property were the single largest taxation revenue source (38.5%) for state governments in 2004-05, followed by employers' payroll taxes at 28.8%. The following graph shows the changing proportions of the different taxation revenue categories to total taxation revenue for the state governments.

PERCENTAGE OF STATE GOVERNMENT TAXATION REVENUE
Graph: Percentage of State Government Taxation Revenue



Local Government Taxation Revenue

Local government taxation revenue increased 6.2% from $7,673 million in 2003-04 to $8,146 million in 2004-05. Taxes on property are the sole source of taxation revenue for local governments.


Major Components of Total Taxation

Income taxes levied on individuals in 2004-05 represented 40.3% of total taxation revenue for all levels of government.


GST revenue represented 12.7% of total taxation revenue for all levels of government. Excises and levies represented a further 8.2% of total taxation revenue.

MAJOR COMPONENTS OF TOTAL TAXATION, All levels of government

1999-2000
2000-01
2001-02
2002-03
2003-04
2004-05
%
%
%
%
%
%

Taxes on income
Income taxes levied on individuals
44.5
37.9
41.4
39.7
39.9
40.3
Income taxes levied on enterprises(a)
15.0
19.7
14.6
16.3
16.3
17.8
Income taxes levied on non-residents(b)
0.6
0.6
0.5
0.5
0.4
0.4
Employers payroll taxes
General taxes (payroll tax)
4.4
4.3
4.3
4.1
4.1
4.2
Selective payroll taxes (stevedoring industry charges)
-
-
-
-
-
-
Other employers labour force taxes
-
0.1
0.1
0.1
0.1
0.1
Taxes on property
Taxes on immovable property
4.3
4.2
4.4
4.4
4.5
4.5
Taxes on financial and capital transactions
4.9
4.5
4.4
4.6
5.0
4.2
Taxes on provision of goods and services
General taxes (sales tax)
7.9
0.9
0.4
0.4
0.4
0.4
Goods and services tax (GST)
-
11.1
12.6
13.1
13.3
12.7
Excises and levies
7.6
9.2
9.4
9.1
8.5
8.2
Taxes on international trade
1.9
2.1
2.4
2.3
2.2
2.0
Taxes on gambling
2.2
1.7
1.7
1.6
1.6
1.5
Taxes on insurance
1.1
1.1
1.3
1.3
1.3
1.3
Taxes on the use of goods and performance of activities
Motor vehicle taxes
2.0
1.9
2.0
2.0
2.0
1.9
Franchise taxes
3.0
0.2
-
-
-
-
Other
0.5
0.5
0.5
0.5
0.5
0.4
Total
100.0
100.0
100.0
100.0
100.0
100.0

- nil or rounded to zero (including null cells)
(a) Amounts collected under petroleum resource rent taxes are included in income taxes levied on enterprises
(b) From 2001-02, withholding taxes on non-residents are no longer separately identifiable under the PAYG system. The values for 2001-02 and subsequent years are estimates based on methodologies developed by the Balance of Payments area within the ABS.



MAJOR FACTORS AFFECTING TAXATION REVENUE

The amount of taxation revenue collected in a particular year can be affected by a number of factors, including:

  • 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 2004-05 are outlined below. This information has been derived from budget outcomes and annual reports published for the Commonwealth and state governments.


Commonwealth Government

Taxes on Income

  • Income taxes levied on individuals rose by $9.6 billion or 9.4% reflecting a $9.8 billion increase in personal income tax.
  • Fringe benefits tax (which is now treated in all periods of the time series as a tax on individuals rather than a tax on employers) fell by $166 million or 4.6%.
  • Company income tax rose $7.1 billion or 18.8% due to stronger income growth and profitability.
  • Income tax paid by superannuation funds increased by $596 million or 13.3%.

Taxes on Employers' Payroll and Labour Force
  • Other employer labour force taxes (comprising the superannuation guarantee charge) fell $89 million from $381 million to $292 million.

Taxes on the provision of goods and services
  • Goods and services tax revenue rose almost $1.4 billion or 4.0%.
  • Revenue from excises and levies rose $909 million or 4.2%.
  • General taxes on the provision of goods and services (other than GST) increased by $162 million or 16.2%.

State Governments

Taxes on Employers' Payroll and Labour Force
  • The taxes on employers' payrolls and labour force increased in 2004-05 by $1,157 million or 10.7%. Tax revenue from employers' payroll taxes increased across all states. The largest increase occurred in New South Wales where an increase of $476 million was recorded. Victoria and Queensland also recorded increases in excess of $100 million.

Taxes on property
  • Taxes on property fell $640 million or 3.8% reflecting an increase in taxes on immovable property being outweighed by a decrease in taxes on financial and capital transactions.
  • Taxes on immovable property increased by $624 million or 16.4% with $524 million of the increase due to increased revenue from land taxes.
  • Stamp duty on conveyances decreased by $875 million and accounted for almost 70% of the $1,264 million decrease from taxes on financial and capital transactions.
  • Taxation revenue from other stamp duties on financial and capital transactions decreased by $378 million or 25.0% with decreases recorded across all states.

Taxes on the provision of goods and services
  • Taxes on the provision of goods and services increased by $590 million or 8.1% with $366 million of the increase occurring in New South Wales.
  • Taxes on gambling increased by $273 million or 6.8%, with increases being experienced in all states except the ACT.
  • Taxes on insurance rose $271 million or 8.4%. $247 million of the increase occurred in New South Wales.

Taxes on use of goods and peformance of activities
  • Taxes on the use of goods and performance of activities increased across all states with the exception of New South Wales, where they fell $105 million.
  • Revenue from motor vehicle taxes increased by $286 million or 5.6% with increases being recorded across all states.


TAXATION AS A PROPORTION OF GROSS DOMESTIC PRODUCT (GDP)

Total taxation revenue as a percentage of GDP increased from 30.7% to 31.2%. Taxation revenue for the Commonwealth Government as a percentage of GDP rose from 25.0% to 25.7%, while total taxation revenue from state and local governments fell from 5.7% of GDP in 2003-04 to 5.6% in 2004-05.

TAXATION REVENUE AS A PERCENTAGE OF GDP
Graph: Taxation Revenue as a Percentage of GDP




PER CAPITA TAXATION

On average, Australian residents each paid $13,781 in tax in 2004-05, up 7.0% on the previous year.


The Commonwealth Government taxation per capita rose by 8.1% from $10,486 in 2003-04 to $11,336 in 2004-05.


State and territory governments and local councils charged residents an average of $2,462 a year in property taxes, stamp duty, gambling taxes, payroll and other taxes in 2004-05. This was up from $2,404 in 2003-04.


Of the individual states and territories the ACT recorded the only decrease in taxation per capita. Its taxation per capita fell $135 or 5.8% from $2,328 in 2003-04 to $2,193 in 2004-05


New South Wales taxation per capita was $2,645 in 2004-05, up 1.7% from 2003-04.


Taxation per capita in the Northern Territory rose $191 or 12% between 2003-04 to 2004-05, from $1,593 to $1,784.


The amount of taxation per head of resident population, by jurisdiction, is shown in the table below.

TAXATION PER CAPITA(a)

1999-2000
2000-01
2001-02
2002-03
2003-04
2004-05
$
$
$
$
$
$

Level of Government
State and Local
New South Wales
2 678
2 376
2 339
2 479
2 601
2 645
Victoria
2 379
2 123
2 176
2 285
2 457
2 520
Queensland
1 760
1 529
1 671
1 864
2 127
2 179
South Australia
2 144
1 818
1 836
2 019
2 282
2 387
Western Australia
2 174
1 886
1 908
2 139
2 506
2 582
Tasmania
1 781
1 499
1 475
1 558
1 698
1 817
Northern Territory
2 013
1 307
1 392
1 497
1 593
1 784
Australian Capital Territory
2 201
2 014
1 808
2 120
2 328
2 193
Average
2 305
2 025
2 053
2 207
2 404
2 462
Commonwealth Government
8 043
9 106
9 106
9 860
10 486
11 336
All levels of government
10 334
11 117
11 143
12 052
12 873
13 781

(a) Estimated Residential Population data used in this table is sourced from Australian Demographic Statistics, June 2005, (ABS cat. no 3101.0). Details of the calculations are in paragraphs 14 and 15 of the Explanatory Notes section.


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