Statement 5: Revenue (Continued)
Revenue variations since MYEFO
While changes in revenue are generally driven by the same factors as receipts, there are differences, as not all revenue raised in a given year is actually paid in that year. For example, past tax assessments may be amended as a result of compliance activity or the settlement of legal disputes and taxpayers may accrue new tax debts. These differences exist for most revenue heads, and vary across years. Further information on the difference between the accrual and cash taxation estimates is provided in Appendix E: Taxation Revenue Recognition.
Table 7 provides a reconciliation of the Budget's revenue estimates with those at MYEFO.
Since the 2010‑11 MYEFO, total revenue has been revised down by $8.9 billion in 2010‑11.
The same factors affecting tax receipts in 2010‑11 are driving similar downward revisions to total revenue. Total revenue has been revised down by $9.0 billion from parameter and other variations, largely reflecting downward revisions to company taxes, individuals income taxes and GST. Weaker company tax revenue reflects the more subdued economic conditions, owing in part to the recent natural disasters and lower than expected consumption expenditure. Lower capital gains and higher than anticipated accumulated losses accrued during the global financial crisis also play a role. Individuals' income tax revenue is lower due to weaker capital gains and slower aggregate wage growth. Downward revisions in GST receipts reflect weaker than anticipated consumption expenditure.
Since MYEFO, total revenue has been revised down by $5.4 billion in 2011‑12.
Total revenue has been revised down by $5.0 billion from parameter and other variations. The weakness reflects both subdued capital gains and company profitability owing to ongoing legacy effects of the global financial crisis, but also due to the impacts of the natural disasters. The legacy effects of the global financial crisis are expected to have ongoing impacts on individuals', companies and capital gains taxes across the forecast horizon.
Table 7: Reconciliation of total Australian Government general
government revenue estimates from the 2010‑11 MYEFO
- Excludes secondary impacts on public debt interest of policy decisions and offsets from the contingency reserve for decisions taken.
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