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5506.0 - Taxation Revenue, Australia, 2006-07 Quality Declaration 
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 15/04/2008   
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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 2001-02 to 2006-07. 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 shown in the relevant tables.
 
This publication also contains an Appendix on adjusted measures of government revenue, which provides analytical measures designed to facilitate an understanding of the level of government at which revenue is used rather than simply collected.
 
 
TERMINOLOGY
 
In this publication, the term 'state' includes the two territories. Therefore, 'state' refers to 'state and territories' and 'state and local' refers to 'state, territories and local'.
 
 
INQUIRIES
 
For further information about these and related statistics, contact the National Information and Referral Service on 1300 135 070 or Glynis Orrell 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' payroll, 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 $22,039 million (7.4%) between 2005-06 and 2006-07. Taxes on income increased by $13,181 million (7.5%) and taxes on the provision of goods and services increased $4,005 million (5.3%).
 

TOTAL TAXATION REVENUE

2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
$m
$m
$m
$m
$m
$m

COMMONWEALTH GOVERNMENT

Taxes on income
123 065
134 432
145 709
162 974
176 198
189 378
Employers' payroll taxes
156
253
381
292
369
350
Taxes on property
12
13
13
14
14
15
Taxes on the provision of goods and services
53 883
59 371
62 646
64 997
67 822
71 452
Taxes on the use of goods and performance of activities
722
757
811
854
821
793
Total taxation revenue
177 838
194 827
209 560
229 131
245 223
261 988

STATE GOVERNMENTS

Taxes on income
-
-
-
-
-
-
Employers' payroll taxes
9 671
10 162
10 839
11 996
13 092
14 398
Taxes on property
12 434
14 166
16 683
16 043
16 910
19 841
Taxes on the provision of goods and services
6 555
6 990
7 275
7 865
8 172
8 546
Taxes on the use of goods and performance of activities
4 682
5 100
5 597
5 745
6 066
6 126
Total taxation revenue
33 341
36 418
40 394
41 649
44 240
48 911

LOCAL GOVERNMENTS

Taxes on income
-
-
-
-
-
-
Employers' payroll taxes
-
-
-
-
-
-
Taxes on property
6 757
7 224
7 671
8 183
8 710
9 388
Taxes on the provision of goods and services
-
-
-
-
-
-
Taxes on the use of goods and performance of activities
-
-
-
-
-
-
Total taxation revenue
6 757
7 224
7 671
8 183
8 710
9 388

ALL LEVELS OF GOVERNMENT

Taxes on income
123 064
134 432
145 707
162 972
176 192
189 373
Employers' payroll taxes
9 509
10 076
10 862
11 898
13 041
14 286
Taxes on property
19 195
21 395
24 358
24 232
25 626
29 234
Taxes on the provision of goods and services
60 438
66 360
69 922
72 861
75 994
79 999
Taxes on the use of goods and performance of activities
5 404
5 854
6 404
6 598
6 884
6 884
Total taxation revenue
217 609
238 118
257 253
278 562
297 737
319 776

- nil or rounded to zero (including null cells)

 
Taxes on income totalled $189,373 million in 2006-07 and comprised 59.2% of total taxation revenue for all levels of government. Taxes on the provision of goods and services, including goods and services tax (GST), totalled $79,999 million in 2006-07 and comprised 25.0% 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 6.8% from $245,223 million in 2005-06 to $261,988 million in 2006-07. In 2006-07, Commonwealth taxation revenue represented 81.9% of taxation revenue for all levels of government. The following graph shows the level of taxation revenue for the two main sources of taxation revenue for the Commonwealth Government. In ABS government finance statistics GST is recorded as a Commonwealth Government tax.

Commonwealth Government Taxation Revenue
Graph:  Commonwealth Government taxation revenue

 
 
State Government Taxation Revenue
 
State government taxation revenue (including taxes from other levels of government and public corporations) increased 10.6% from $44,240 million in 2005-06 to $48,911 million in 2006-07. Taxes on property were the largest source of taxation revenue (40.6%) for state governments in 2006-07, followed by employers' payroll taxes at 29.4%. The following graph shows the level of taxation revenue for the major sources of taxation revenue for the state governments.

State Government Taxation Revenue
Graph: State Government taxation revenue

 
 
Local Government Taxation Revenue
 
Local government taxation revenue increased 7.8% from $8,710 million in 2005-06 to $9,388 million in 2006-07. Taxes on property are the sole source of taxation revenue for local governments.
 
 
Major Components of Total Taxation Revenue
 
Income taxes levied on individuals in 2006-07 represented 37.5% of total taxation revenue. In comparison income taxes levied on enterprises represented 21.2%.
 
GST revenue represented 12.9% of total taxation revenue for all levels of government.
 

MAJOR COMPONENTS OF TOTAL TAXATION, All levels of government

2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
%
%
%
%
%
%

Taxes on income
Income taxes levied on individuals
41.4
39.7
39.9
40.3
39.8
37.5
Income taxes levied on enterprises(a)
14.6
16.3
16.3
17.8
18.9
21.2
Income taxes levied on non-residents(b)
0.6
0.5
0.4
0.4
0.5
0.6
Employers payroll taxes
General taxes (payroll tax)
4.3
4.1
4.1
4.2
4.3
4.4
Other employers labour force taxes
0.1
0.1
0.1
0.1
0.1
0.1
Taxes on property
Taxes on immovable property
4.4
4.4
4.5
4.5
4.5
4.6
Taxes on financial and capital transactions
4.5
4.6
5.0
4.2
4.2
4.5
Taxes on provision of goods and services
General taxes (sales tax)
0.4
0.4
0.4
0.4
0.3
0.3
Goods and services tax (GST)
12.6
13.1
13.3
12.8
13.1
12.9
Excises and levies
9.4
9.1
8.5
8.2
7.7
7.4
Taxes on international trade
2.4
2.3
2.2
2.0
1.7
1.8
Taxes on gambling
1.7
1.6
1.6
1.5
1.5
1.5
Taxes on insurance
1.3
1.3
1.3
1.3
1.2
1.2
Taxes on the use of goods and performance of activities
Motor vehicle taxes
2.0
2.0
2.0
1.9
1.9
1.8
Franchise taxes
-
-
-
-
-
-
Other
0.5
0.5
0.5
0.4
0.4
0.3
Total
100.0
100.0
100.0
100.0
100.0
100.0

- nil or rounded to zero (including null cells)
(a) Includes petroleum resource rent taxes.
(b) Withholding taxes on non-residents are no longer separately identified under the PAYG system. Estimates for 2001-02 onwards are modelled on income flows between residents and non-residents.

 
 
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 2006-07 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 $1,370 million (1.2%) due largely to a $1,701 million increase in personal income tax partly offset by a fall in fringe benefits tax.
  • Income taxes levied on enterprises rose by $11,314 million (20.1%) due largely to a $9,153 million (18.0%) increase in company income tax as a result of stronger income growth and profitability. Income taxes paid by superannuation funds also increased by $2,161 million (39.9%) reflecting higher fund earnings and greater taxable superannuation contributions.
 
Taxes on the provision of goods and services
 
  • Goods and services tax (GST) revenue received rose $2,090 million (5.3%) to $41,208 million.
 
 
State Governments
 
Total taxation revenue
 
  • The total taxation revenue for New South Wales and Queensland increased by $1,796 million (11.3%) and $1,088 million (14.7%) respectively, driven by increased taxation revenue from stamp duties on conveyances and employers' payroll taxes. The total Australian Capital Territory recorded the highest percentage increase in total taxation revenue of 18.8% ($147 million) in 2006-07, due mainly to increased taxation revenue from stamp duties on conveyances. Total taxation revenue in the Northern Territory decreased by 2.4% due to a fall in the revenue received from stamp duties.
 
Taxes on Employers' Payroll
 
  • Taxes on employers' payrolls increased in 2006-07 by $1,306 million or 10.0%. Tax revenue from employers' payroll taxes increased across most states. The largest increase, in dollar terms, occurred in New South Wales where an increase of $486 million was recorded. Western Australia recorded the largest percentage increase of 18.6%.
 
Taxes on property
 
  • Taxes on property rose $2,931 million (17.3%) due largely to a $2,082 million (19.0%) rise in stamp duties on conveyances and a $745 million (20.7%) increase in land taxes received.
  • Tax revenue from stamp duties on conveyances increased across all states except Northern Territory. The largest increase occurred in New South Wales where an increase of $929 million (28.7%) was recorded. The largest increase in percentage terms was Queensland which recorded an increase of 30.4%.
 
Taxes on the provision of goods and services
 
  • Taxes on the provision of goods and services increased by $374 million, a rise of 4.6%.
  • Taxes on gambling increased by $221 million (4.9%), with most of this increase coming from taxes on gaming machines.
 
Taxes on use of goods and peformance of activities
 
  • Revenue from motor vehicle taxes increased by $319 million (5.7%).
 
 
TAXATION REVENUE AS A PROPORTION OF GROSS DOMESTIC PRODUCT (GDP)
 
Total taxation revenue as a proportion of GDP decreased from 30.8% in 2005-06 to 30.5% in 2006-07. As a percentage of GDP, taxation revenue for the Commonwealth Government fell from 25.3% to 25.0%, while taxation revenue for state and local governments increased from 5.5% to 5.6% in 2006-07.
 
 
PER CAPITA TAXATION
 
In 2006-07, taxation per capita was $15,335, an increase of 5.8% from 2005-06.
 
The Commonwealth Government taxation per capita rose by 5.3% from $11,934 in 2005-06 to $12,564 in 2006-07.
 
The taxation per capita for state and local governments combined in 2006-07 was $2,792, an increase of 8.4% from $2,575 in 2005-06.
 
Most states and territories recorded increases in taxation per capita. Western Australia recorded the highest taxation per capita with $3,229 and Tasmania the lowest at $1,950. The Australian Capital Territory recorded the highest percentage increase in taxation per capita taxation with 17.4%. The Northern Territory was the only state or territory to record a decrease in taxation per capita with a fall of 3.0%.
 
Taxation per capita by jurisdiction is shown in the table below.
 

TAXATION PER CAPITA (a), by level of government

2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
$
$
$
$
$
$

State and Local Government
New South Wales
2 338
2 480
2 604
2 651
2 730
2 980
Victoria
2 176
2 281
2 449
2 509
2 591
2 750
Queensland
1 670
1 861
2 120
2 169
2 271
2 534
South Australia
1 834
2 015
2 272
2 380
2 414
2 591
Western Australia
1 907
2 145
2 502
2 594
3 006
3 229
Tasmania
1 476
1 558
1 695
1 816
1 869
1 950
Northern Territory
1 371
1 490
1 580
1 761
2 091
2 028
Australian Capital Territory
1 805
2 110
2 309
2 169
2 352
2 761
Average
2 051
2 206
2 400
2 458
2 575
2 792
Commonwealth Government
9 104
9 853
10 470
11 311
11 934
12 564
All levels of government
11 139
12 042
12 852
13 751
14 490
15 335

(a) Estimated Resident Population data used in this table is sources from Australian Demographic Statistics, (cat. no. 3101.0). Details of the calculation are in paragraph 13 of the Explanatory Notes section.


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