Statistics about finances of the general government and public non-financial corporations sectors for the various levels of government in Australia
Government Finance Statistics (GFS) are available as current prices, original series. Unless indicated, all data here are estimates for the total general government sector which includes the Commonwealth, state, territory and local general governments, and public universities.
These preliminary annual results are created using a sum of four quarters approach. Annual GFS data for 2023-24 will be published on 22/04/2025.
Net operating balance
Australia’s net operating balance was $11.6 billion in 2023-24, $23.3 billion lower than 2022-23. Revenue was greater than expenses in 2023-24, although growth in expenses (8.1% or $71.5 billion) was larger than growth in revenue (5.3% or $48.3 billion).
Australia’s revenue increased by 5.3% ($48.2 billion) in 2023-24. This was largely driven by taxation revenue which contributed 92.4% ($44.6 billion) to total growth and accounts for 82.9% of total Australian revenue. This was partially offset by a decrease in royalty income, which fell 17.1% ($6.3 billion) in 2023-24.
Commonwealth taxation was the largest component of Australia’s total taxation revenue at 81.3% and increased 4.9% ($30.3 billion) in 2023-24. The increase in Commonwealth taxation was driven by an increase in personal income tax, which was partially offset by a decline company income tax.
State and local taxation accounted for 18.7% of total taxation revenue and increased 10.5% ($14.2 billion) in 2023‑24. The increase in state and local taxation was driven by an increase in payroll tax.
Australia’s royalty income decreased by 17.1% ($6.3 billion) in 2023-24 as energy commodity prices (e.g. coal) softened relative to metal commodities, and followed record export price levels over the previous two financial years. Key drivers of the result in royalty income were:
While royalty income decreased in 2023-24, levels remain elevated compared to 2020-21 due to commodity prices (a) and changes to government policy (e.g. Queensland’s introduction of a 3-tier coal royalty structure in July 2022).
Australia’s expenses increased by 8.1% ($71.5 billion) in 2023-24, driven by increases in social benefits, employee expenses, and current monetary transfers to households. Social benefits increased by 16.5% ($23.8 billion), whilst employee expenses and current monetary transfers to households increased by 9.2% ($21.5 billion) and 7.2% ($10.5 billion) respectively.
Australia’s social benefits increased 16.5% ($23.8 billion) in 2023-24 and accounted for 17.6% of total expenses. This is largely driven by Commonwealth payments which comprise around 91% of total social benefits.
Commonwealth social benefits increased 15.8% ($20.8 billion) in 2023-24, driven by increases in aged care, disability, health, child care and family and non-government schools.
State social benefits increased 24.1% ($3.0 billion) in 2023-24, driven by increases in energy rebates and non-government school payments, as well as the introduction of additional pre-school, kindergarten and early childcare benefits across various states.
Higher energy rebates reflected the introduction of Commonwealth Energy Bill Relief (a) from the 1st of July 2023 which was co-funded with states and territories. This was in addition to existing state and territory energy concessions and state energy rebates in jurisdictions such as Queensland (b) and Western Australia (c).
Australian employee expenses (a) increased 9.2% ($21.5 billion) in 2023-24 and accounted for 26.8% of total expenses. State and local government employee expenses increased 7.8% ($13.4 billion) and was the largest contributor to growth, with state government making up the largest portion of public sector workers (b). In addition, Commonwealth employee expenses increased by 14.5% ($6.2 billion) and universities increased by 10.2% ($1.9 billion).
Total 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.
Australia’s monetary transfers to households increased by 7.0% ($10.3 billion) in 2023-24 and accounted for 16.5% of total expenses. Growth was driven by aged pension, disability and carers pensions, family tax benefit and job seeker payments. Commonwealth transfers contributed to around 98% of monetary transfers to households.