Current taxes on income, wealth, etc.

There are three components to estimating annual current taxes on income, wealth, etc. for the household sector:

• Income tax is derived using data from Government Finance Statistics. GFS quarterly estimates are summed to form the annual estimate. These estimates include the Medicare levy and capital gains tax, as well as taxes paid by pay-as-you-go (PAYG) (for employees and self-employed) and pay-as-you-earn (PAYE) net of refunds. The GFS data are collected from administrative data provided by the Commonwealth Department of Finance.
• Fringe benefits tax is calculated on an annual basis using estimates sourced from the Australian Taxation Office (up to year t-1) and final budget outcomes (years t and t+1). Due to the FBT being calculated based on a financial year from 1 April to 31 March, the published series uses three quarters of one year and one quarter of the next year to make it comparable and so the data are needed up until year t+1.
• Tax payable on superannuation contributions is calculated by multiplying the average effective tax rate payable by superannuation funds by the total value of assessable contributions. These estimates are sourced from the ATO for all years except year t and t-1. For year t and t-1, the estimate is derived by extrapolating the estimate for year t-2 using annualised quarterly data on total contributions into super funds sourced from the Australian Prudential Regulatory Authority as an indicator.

These are summed to obtain total income tax for the household sector.

• The following outlines the sources and methods used to estimate the various types of income tax. These three taxes are summed in order to estimate total income tax paid by resident corporations.
• Income taxes are derived directly using actual data from the Australian Taxation Office for all years except the current year t and year t-1. The estimate for year t-1 is derived using the data from the Commonwealth's consolidated financial statement. The current year is derived by moving forward the year t-1 estimate using the movement in the forecast value in the Commonwealth Final Budget Outcome (CFBO).
• Estimates for tax on income earned by superannuation funds are obtained as a residual after tax payable on superannuation contributions and tax paid on capital gains by superannuation funds are deducted from the total tax payable by superannuation funds. These data are available for all years from the ATO except for the current year t and year t-1. The estimates for year t-1 and current year are derived by extrapolating the estimate for year t-2 using data from Government Finance Statistics. Tax on contributions is obtained using the method described above. This amount is deducted from the estimate of total tax on superannuation sourced from administrative data provided by the Department of Finance. The residual is tax paid on income earned and tax on capital gains earned by superannuation funds. These are not published separately in the ASNA.
• Petroleum resource rent tax has been payable from 1 July 1990. Mineral resource rent taxes were payable from 1 July 2012 to 30 September 2014. Data were sourced from the ATO for all years except the current year. The current year was derived by using the movement in the forecast value in the CFBO.

Other current taxes on income, wealth, etc. paid to general government includes payments by households to obtain licences to own or use vehicles, boats or aircraft, and for licences to hunt, shoot or fish. Similar taxes paid by business enterprises are treated as taxes on production.

Other current taxes on income, wealth, etc. also consists of other current taxes including current taxes on land and buildings, current taxes on net wealth, current taxes on other assets and other miscellaneous current taxes, excluding those used in production

Income tax for individuals includes income tax, fringe benefits tax (FBT) and tax payable on superannuation contributions.

• The quarterly indicator for income tax is sourced from Government Finance Statistics. These estimates include the Medicare levy and capital gains tax, as well as taxes paid by pay-as-you-go (PAYG) (for employees and self-employed) and pay-as-you-earn (PAYE) net of refunds. Data are sourced from the Commonwealth Department of Finance. These quarterly estimates are used as indicators to produce income tax for general government and households by applying a benchmarking process to the corresponding annual series.
• Total wages and salaries excluding payments in kind are used as a quarterly indicator to produce fringe benefits tax (FBT) by applying a benchmarking process to the corresponding annual series.
• Total wages and salaries are used as a quarterly indicator to produce tax payable on superannuation contributions for general government and households by applying a benchmarking process to the corresponding annual series.

These are summed to obtain total quarterly income tax for individuals for the general government and household sectors.

Income tax for resident corporations includes income tax, tax paid on capital gains and tax on income earned by superannuation funds. Mineral resource rent taxes were also payable from 1 July 2012 to 30 Sep 2014. Petroleum resource rent tax has been payable from 1 July 1990.

Quarterly indicators for income tax for resident private non-financial corporations are sourced from the Quarterly Business Indicators Survey. Gross operating profits are used as a quarterly indicator to produce income tax paid by resident private non-financial corporations by applying a benchmarking process to the corresponding annual series.

Quarterly indicators for income tax for resident financial corporations are sourced from APRA. Profits are used as the quarterly indicator to produce income tax for resident financial corporations by applying a benchmarking process to the corresponding annual series from 1 July 2002 onwards. Prior to this, income tax for resident financial corporations is derived as a residual using the following calculation:

     Income tax paid by resident corporations
     less income tax paid by private non-financial corporations
     equals income tax paid by financial corporations

Quarterly estimates of income tax paid by public non-financial corporations are obtained from Government Finance Statistics. Data are sourced from a quarterly survey of public non-financial corporations. These quarterly estimates are used as indicators to produce income tax for resident public non-financial corporations by applying a benchmarking process to the corresponding annual series.

Income tax received by general government from resident corporations is derived using the following calculation:

     Income tax paid by public non-financial corporations
     plus income tax paid by financial corporations
     plus income tax paid by private non-financial corporations
     equals income tax received by general government from resident corporations.

Other current taxes on income, wealth, etc. paid to non-residents are sourced directly from Balance of Payments statistics.

Other current taxes on income, wealth, etc. paid to general government includes payments by households to obtain licences to own or use vehicles, boats or aircraft, and for licences to hunt, shoot or fish.

Data on other current taxes on income, wealth, etc. are obtained from Government Finance Statistics. They are derived from administrative sources such as the Commonwealth Department of Finance and State government financial statements.

These quarterly estimates are used as indicators to produce other current taxes on income, wealth, etc. received by general government from households by applying a benchmarking process to the corresponding annual series.

There is no quarterly imbalance as quarterly current taxes on income, wealth, etc. are calculated on a "from-whom-to-whom" basis, or have a residual.