Classification of government policies in Government Finance Statistics

New government policies that are likely to influence Government Finance Statistics in the September quarter 2023.

Released
5/12/2023

Introduction

The ABS continues to consult with stakeholders and subject matter experts to determine appropriate classifications for new government initiatives. These classifications are based on well-established conceptual frameworks (a), which ensure consistent recording of these policies across macroeconomic statistics, particularly in relation to GFS and the National Accounts (NA).

Key government initiatives impacting September quarter

Government fiscal support through the quarter continued to target provision of assistance to households, businesses and non-profit institutions.

Social benefit expenditure in the September quarter included expenditure through the National Energy Bill Relief program and ongoing expansions to Commonwealth social programs.

State-based public sector wages contributed to outcomes for general government final consumption expenditure.

Classification of government policies

The classification of government policies impacting the September quarter 2023 is summarised in the table below. The policies are grouped into three broad categories (b) and align with the ABS GFS economic classifications. 

  • Provision of assistance to households, corporations, unincorporated enterprises, and non-profit institutions.
  • Relaxation of tax and non-tax revenue obligations.
  • Increased healthcare and frontline services spending.

 

Classification of selected policies across Commonwealth and State levels of government

Types of policies

Examples of policies

Classification in Government Finance Statistics (GFS) and National Accounts (NA) (c)

Provision of assistance to households, corporations, unincorporated enterprises, and non-profit institutions

National Energy Price Relief Plan

State: (d) State and Commonwealth jointly funded up to a total of $3b of electricity bill relief delivered to eligible households and businesses (all).

GFS: Social benefits to households in goods and services; other subsidies on production

NA: GDP (E) - Government final consumption expenditure, GDP (I) - Other subsidies on production

Cheaper Childcare

Commonwealth: Childcare subsidy rates increase from 85 per cent to 90 per cent for families earning less than $80,000. Subsidy rates will taper down one percentage point per additional $5,000 in income until it reaches zero per cent for families earning $530,000.

GFS: Social benefits to households in goods and services

NA: GDP (E) - Government final consumption expenditure

Aged Care Workers Salary Increase

Commonwealth: 15% increase of award wages for direct services employees in the aged care industry.

GFS: Social benefits to households in goods and services

NA: GDP (E) - Government final consumption expenditure

Relaxation of tax and non-tax revenue obligations

Small Business Energy Incentive

Commonwealth: Tax relief and support up to 3.8 million eligible small businesses to invest in electrifying their heating and cooling systems, installing batteries and upgrading to highefficiency electrical goods.

GFS: Taxes on income

NA: Income accounts – current taxes on income

Small Business Instant Asset Write-off

Commonwealth: Support to small businesses to invest by providing $290 million in cash flow support through the $20,000 instant asset writeoff.

GFS: Taxes on income

NA: Income accounts – current taxes on income

Technology Investment Boost and Skills and Training Boost

Commonwealth: Small and medium businesses with an annual turnover of less than $50 million are eligible for a 20 per cent deduction for eligible expenditure on external training of employees by providers registered in Australia. Businesses also have access to a bonus 20 per cent deduction to support the uptake of digital technologies.

GFS: Taxes on income

NA: Income accounts – current taxes on income

COVID Tax Levy

State: Businesses with a national payroll of more than $10 million will pay an additional payroll tax of 0.5 per cent, or 1 per cent if their national payroll exceeds $100 million (VIC).

GFS: Other taxes on production

NA: GDP (I) - taxes on production and imports

First Home Buyers Assistance Scheme

State: Eligible first home buyers to receive a full exemption or reduced rate of transfer duty on the purchase of a new or existing home or vacant land (NSW).

GFS: Taxes on products

GDP (P) - Taxes on products

SA Stamp Duty Relief for First Home Buyers

State: No stamp duty payable on new homes valued below $650,000, or vacant land below $400,000. Reduced stamp duty on new homes valued below $700,000 or vacant land below $450,000 (SA).

GFS: Taxes on products

GDP (P) - Taxes on products

Increased healthcare and frontline services spending

NSW Public Sector Pay Increase

State: 4.0% pay increase and 0.5% super increase for over 400,000 public sector employees (NSW).

GFS: Wages, salaries, and supplements, superannuation expenses

NA: GDP (E) - Government final consumption expenditure; GDP(I) – Compensation of employees

WA Firefighters Pay Increase and Cost of Living Payment

State: Firefighters will receive a wage increase of $60 per week or 3% per annum – whichever results in a higher outcome – with backpay to 9 June 2023 and a $3,000 cost of living payment (WA).

GFS: Wages, salaries, and supplements

NA: GDP (E) - Government final consumption expenditure; GDP(I) – Compensation of employees

TAS Doctors pay increase and Cost of Living Payment

State: Doctors will receive a 3.5 per cent pay rise from the first full pay period on or after 1 July 2023. Doctors will also receive a $1,000 cost of living payment (TAS).

GFS: Wages, salaries, and supplements

NA: GDP (E) - Government final consumption expenditure; GDP(I) – Compensation of employees

ACT Public Sector Enterprise Bargaining Agreement – cost of living supplement

State: A cost of living supplement of $1,250 on the commencement of the new agreement (ACT).

GFS: Wages, salaries, and supplements

NA: GDP (E) - Government final consumption expenditure; GDP(I) – Compensation of employees

Footnotes - Show all

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