Overview
Relative to the Mid-Year Economic and Fiscal Outlook 2004-05 (MYEFO), total revenue for 2005‑06 is expected to be higher, with stronger growth in income taxation revenue from companies, small unincorporated businesses and personal investors. Personal income tax cuts of $21.7 billion over 4 years will commence on 1 July 2005. These tax cuts are in addition to those announced in the 2004‑05 Budget. The superannuation surcharge will be abolished from 1 July 2005.
Revenue forecasts1 for 2004‑05 and 2005‑06 along with projections for the period from 2006‑07 are provided in Table 1.
Table 1: Total Australian Government general government revenue
Total revenue is projected to decrease from 23.5 per cent of GDP in 2004‑05 to 23.1 per cent in 2008-09. The decrease in revenue as a share of GDP is mostly due to a decrease in taxation revenue, which is projected to fall from 22.0 per cent of GDP in 2004‑05 to 21.7 per cent in 2008-09.
1 All revenue estimates in this statement are reported on an accrual basis unless otherwise specified. A summary of the tax system is provided in Appendix A. Commentary on accrual and cash taxation revenue is provided in Appendix E. Detailed estimates on a cash basis are provided in Appendix C. Historical receipts outcomes are provided in Appendix G. The revenue estimates exclude GST revenue, which is collected by the Australian Government and provided in full to the states and territories. A discussion of GST revenue is provided in Budget Paper No. 3, Federal Financial Relations 2005-06.