Taxation Revenue, Australia

This publication contains statistics of taxation revenue collected by all levels of government in Australia for the periods 2008-09 to 2017-18. The taxation revenue statistics presented are for the general government sector and include taxes received from public corporations (i.e. government owned/controlled corporations). Time series of these data are available on the ABS website.

This publication contains a section 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 collected.

A 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 increased $41,797m (8.6%) from $486,790m in 2016-17 to $528,587m in 2017-18. This was driven by a $31,332m (11.1%) increase in taxes on income, profits and capital gains, and a $6,244m (4.6%) increase in taxes on provision of goods and services.

Commonwealth Government taxation revenue (including taxes received from other levels of government and public corporations) increased $38,661m (9.9%) from $388,576m in 2016-17 to $427,237m in 2017-18. This was driven by a $31,317m (11.1%) increase in taxes on income, profits and capital gains, and a $6,579m (6.6%) increase in taxes on provision of goods and services. The following graph shows the level of taxation revenue for the three main sources of taxation revenue for the Commonwealth Government.

State government taxation revenue (including taxes received from other levels of government and public corporations) increased $2,474m (3.0%) from $81,787m in 2016-17 to $84,261m in 2017-18. This was driven by a $1,219m (5.3%) increase in taxes on employers' payroll and labour force, and a $876m (7.7%) increase in taxes on property. The following graph shows the level of taxation revenue for state governments by source.

Local government taxation revenue increased $723m (4.2%) from $17,399m in 2016-17 to $18,122m in 2017-18.

In December 2015, the Commonwealth Government released the 2015-16 Mid-Year Economic and Fiscal Outlook (MYEFO) which included a reclassification of visa application charges (VAC). In MYEFO these charges are now treated as taxation revenue rather than sales of goods and services. This reclassification has been applied to GFS, with no impact on total GFS revenue or the GFS net operating balance. The National Accounts statistics will maintain coherence with previously published data and classify this transaction as sales of goods and services. These treatments will remain in place until a review of the treatment of VAC across macroeconomic statistics has been completed.

Taxation reforms by government and changes across the Australian economy will influence the growth or decline in taxation receipts for individual tax categories over time.

Taxes on income, profits and capital gains recorded the largest increase in both dollar and percentage terms, increasing by 11.1% from $281,141m in 2016-17 to $312,473m in 2017-18. This was driven by Income taxes levied on enterprises (up 21.6%) and Income taxes levied on individuals (up 7.0%).

Income taxes levied on individuals and enterprises by the Commonwealth Government continues to provide well over half of taxation receipts collected by all levels of government in Australia.

In 2017-18, taxes on income, profits and capital gains represented 59.1% of total taxation revenue for all levels of government and taxes on provision of goods and services, including the goods and services tax (GST), represented 26.8%.

Since 2012-13, taxes on international trade increased its contribution from 2.0% to 3.0%, whereas excises decreased its contribution from 6.4% to 4.5%. This was driven by an increase in tobacco imports as domestic manufacturing of tobacco ended in 2015-16.

In 2017-18, taxation per capita was $21,150m, an increase of 6.9% from $19,787m in 2016-17.

The Commonwealth Government taxation per capita increased by 8.2% from $15,795m in 2016-17 to $17,094m in 2017-18.

The average taxation per capita for state and local governments combined in 2017-18 was $4,087m, an increase of 1.6% from $4,024m in 2016-17.

All states and territories, except for NSW and ACT, recorded an increase in taxation per capita from 2016-17 to 2017-18. The Northern Territory recorded the highest percentage increase in taxation per capita, rising 4.6%.

Total taxation revenue as a percentage of GDP increased from 27.6% in 2016-17 to 28.6% in 2017-18. As a percentage of GDP, taxation revenue for the Commonwealth Government was 23.1%, state government 4.6% and local government 1.0%. Details of the calculation are in paragraph 13 of the Methodology.

Adjusted taxation revenue offers an alternative presentation of revenue which takes into account the level of government at which revenue is used rather than simply collected.

The analysis considers the flows, by way of current grants, that occur between the levels of government in Australia, and the impact that this has on revenue at each of these levels. Also considered is the effect of direct and indirect transfers to households on total revenue. Users should note that these measures are not themselves part of the GFS framework. Additional details are in paragraphs 15 to 19 of the Methodology.

Table 1 shows the derivation of adjusted taxation revenue, for all three levels of government and the control not further defined (n.f.d.) general government sector in Australia.

Table 2 below shows adjusted total revenue, and adjusted total revenue less transfers to households for all three levels of government.

Commonwealth government taxation revenue increased for all measures from 2016-17 to 2017-18:

• Commonwealth taxation revenue was $427,237m, an increase of $38,661m (9.9%).
• Commonwealth adjusted taxation revenue was $305,680m, an increase of $32,890m (12.1%).
• Commonwealth adjusted total revenue was $337,812m, an increase of $33,504m (11.0%).
• Commonwealth adjusted total revenue less transfers to households was $149,903m, an increase of $28,447m (23.4%).
• Commonwealth adjusted total revenue less transfers to households as a proportion of GDP, increased from 6.9% to 8.1%.
   

State government taxation revenue increased for all measures from 2016-17 to 2017-18:

• State taxation revenue was $84,261m, an increase of $2,474m (3.0%).
• State adjusted taxation revenue was $190,593m, an increase of $8,476m (4.7%).
• State adjusted total revenue was $266,394m, an increase of $12,117m (4.8%).
• State adjusted total revenue less transfers to households was $259,005m, an increase of $11,570m (4.7%).
• State adjusted total revenue less transfers to households as a proportion of GDP remained unchanged at 14.0%.
   

Local government taxation revenue increased for all measures from 2016-17 to 2017-18:

• Local taxation revenue was $18,122m, an increase of $723m (4.2%).
• Local adjusted taxation revenue was $22,595m, an increase of $351m (1.6%).
• Local adjusted total revenue was $46,800m, an increase of $953m (2.1%).
• Local adjusted total revenue as a proportion of GDP, decreased from 2.6% to 2.5%.
   

For further information about these and related statistics, contact the National Information and Referral Service on 1300 135 070, email client.services@abs.gov.au or email public.finance@abs.gov.au. The ABS Privacy Policy outlines how the ABS will handle any personal information that you provide to us.

This release previously used catalogue number 5506.0.