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Part 1: Australian Government Budget Outcome (continued)

Fiscal balance

The 2013‑14 fiscal balance deficit was $43.7 billion, a $1.3 billion improvement on the deficit of $45.1 billion estimated at the time of the 2014‑15 Budget.

While the change in the fiscal balance since the 2014‑15 Budget is comparable to the change in the underlying cash balance of $1.4 billion, there are some revenue and expenses and net capital investment variations that have different cash impacts in 2013‑14. The major differences are outlined below.

Revenue

Total revenue was $373.9 billion in 2013‑14, $317 million lower than estimated at the time of the 2014‑15 Budget. In comparison, total cash receipts were $360.3 billion in 2013‑14, $3.2 billion lower than estimated at the time of the 2014‑15 Budget.

Taxation revenue was $351.1 billion in 2013‑14, $131 million higher than the estimate at the time of the 2014‑15 Budget.

Carbon pricing mechanism revenue in 2013‑14 was $717 million (9.8 per cent) lower than expected at the 2014‑15 Budget, reflecting information from interim emissions reports and an estimate of accrued carbon price revenue based on the audited accounts of the Clean Energy Regulator. The estimate is considered preliminary as certain emitters are not required to report in interim emissions reports, and emitters may base their interim report on the previous year's emissions. Information on actual 2013‑14 emissions will become available following the final emissions reporting in October 2014.

Total non‑tax revenue was $22.9 billion in 2013‑14, $449 million lower than estimated at the 2014‑15 Budget. Non‑tax receipts were $22.0 billion, $100 million higher than estimated at Budget.

The $349 million difference in outcomes for non‑tax revenue and non‑tax receipts is largely a result of decreases to non‑tax revenue, which did not have a corresponding non‑tax receipt impact in 2013‑14, including a lower dividend from the Reserve Bank of Australia (RBA) than estimated at the time of the 2014‑15 Budget, reflecting a larger transfer from RBA net profits to the Reserve Bank Reserve Fund based on a review of the outlook for the RBA's capital requirements.

Table 4: Australian Government general government sector (accrual) revenue

	2013‑14 Estimate at 2014-15 Budget $m	2013‑14 Outcome $m	Change on 2014-15 Budget $m
Individuals and other withholding taxes
Gross income tax withholding	158,300	157,761	-539
Gross other individuals	37,180	37,561	381
less: Refunds	27,100	27,407	307
Total individuals and other withholding tax	168,380	167,915	-465
Fringe benefits tax	4,140	4,285	145
Company tax	69,400	68,764	-635
Superannuation fund taxes	6,580	6,146	-434
Minerals resource rent tax(a)	170	141	-29
Petroleum resource rent tax	1,470	1,645	175
Income taxation revenue	250,140	248,897	-1,243
Goods and services tax	54,321	55,517	1,196
Wine equalisation tax	810	826	16
Luxury car tax	430	476	46
Excise and customs duty
Petrol	5,890	5,927	37
Diesel	8,820	8,758	-62
Other fuel products	3,600	3,572	-28
Tobacco	7,770	8,531	761
Beer	2,330	2,307	-23
Spirits	1,890	1,902	12
Other alcoholic beverages(b)	960	908	-52
Other customs duty
Textiles, clothing and footwear	770	789	19
Passenger motor vehicles	920	921	1
Other imports	1,660	1,633	-27
less: Refunds and drawbacks	360	319	-41
Total excise and customs duty	34,250	34,929	679
Carbon pricing mechanism(c)	7,340	6,623	-717
Agricultural levies	476	491	15
Other taxes	3,190	3,329	140
Indirect taxation revenue	100,817	102,191	1,374
Taxation revenue	350,956	351,088	131
Sales of goods and services	8,853	8,573	-280
Interest	3,445	3,341	-104
Dividends	4,288	4,105	-183
Other non-taxation revenue	6,724	6,843	118
Non-taxation revenue	23,310	22,862	-449
Total revenue	374,267	373,950	-317
Memorandum:
Total excise	25,230	25,648	418
Total customs duty	9,020	9,280	260
Medicare and DisabilityCare Australia levy	10,480	10,309	-171

(a) Net revenue from the MRRT was $0.1 billion in 2013‑14 which represents the net revenue impact across different revenue heads. These include offsetting reductions in company tax (through deductibility) and interactions with other taxes.

(b) Other alcoholic beverages are those not exceeding 10 per cent by volume of alcohol (excluding beer, brandy and wine).

(c) Tax revenue includes carbon accrual revenue measured at the legislated price, with details of the accounting treatment of carbon revenue set out in Note 2 to the General Government Sector Financial Statements.

Expenses and net capital investment

Total expenses were $413.8 billion in 2013‑14, $1.4 billion lower than estimated at the time of the 2014‑15 Budget. Total net capital investment for 2013‑14 was $3.8 billion, $177 million lower than the estimate of $4.0 billion at the time of the 2014‑15 Budget. In comparison, cash payments were $406.4 billion in 2013‑14, $4.2 billion lower than the estimate at the time of the 2014‑15 Budget.

The difference of $2.6 billion between the lower than estimated net outcome for expenses and net capital investment and the outcome for cash payments includes:

• expenses for all free carbon units issued or approved for issue during 2013‑14 which were broadly in line with Budget estimates. However, cash payments in relation to the redemption of these units under the buy‑back facility are lower by $2.2 billion due to lower than expected usage of the facility;
• higher than expected expenses ($624 million) claimed through the Australian Taxation Office in 2013‑14 due to the continued operation of the Low Income Superannuation Contribution programme;
• the provision of GST to the States and Territories, reflecting higher than estimated GST collections ($370 million).¹

These increases were broadly offset by lower than expected write‑offs of tax penalties ($467 million) by the Australian Taxation Office.

Further information on expenses by function and sub‑function are provided in Appendix A.

Table 5: Australian Government general government sector expenses by function

	2013‑14 Estimate at 2014-15 Budget $m	2013‑14 Outcome $m	Change on 2014-15 Budget $m
General public services
Legislative and executive affairs	1,334	1,401	68
Financial and fiscal affairs	17,652	16,995	-658
Foreign affairs and economic aid	6,060	6,011	-49
General research	2,724	2,717	-7
General services	714	684	-30
Government superannuation benefits	5,667	5,834	167
Defence	22,840	22,113	-727
Public order and safety	4,446	4,368	-77
Education	29,707	29,669	-38
Health	64,511	63,983	-528
Social security and welfare	140,569	140,566	-3
Housing and community amenities	8,383	8,355	-28
Recreation and culture	3,725	3,749	24
Fuel and energy	7,047	6,749	-298
Agriculture, forestry and fishing	2,629	2,385	-244
Mining, manufacturing and construction	3,139	3,451	313
Transport and communication	8,495	8,407	-89
Other economic affairs
Tourism and area promotion	189	188	-1
Total labour and employment affairs	4,064	3,879	-185
Immigration	4,656	4,404	-251
Other economic affairs nec	2,355	2,367	12
Other purposes
Public debt interest	13,454	13,414	-40
Nominal superannuation interest	8,320	8,214	-106
General purpose inter-governmental transactions	53,224	53,563	339
Natural disaster relief	183	377	194
Contingency reserve	-793	0	793
Total expenses	415,294	413,845	-1,449

Table 6: Australian Government general government sector net capital investment by function

	2013‑14 Estimate at 2014-15 Budget $m	2013‑14 Outcome $m	Change on 2014-15 Budget $m
General public services	546	258	-288
Defence	2,825	3,371	546
Public order and safety	44	29	-16
Education	9	10	1
Health	-14	-13	1
Social security and welfare	-22	-77	-54
Housing and community amenities	96	-26	-123
Recreation and culture	31	-44	-76
Fuel and energy	-1	1	2
Agriculture, forestry and fishing	78	65	-13
Mining, manufacturing and construction	4	3	-1
Transport and communication	-1	-7	-6
Other economic affairs	452	280	-173
Other purposes	-22	0	22
Total net capital investment	4,027	3,850	-177

Table 7: Australian Government general government sector purchases of non‑financial assets by function

	2013‑14 Estimate at 2014-15 Budget $m	2013‑14 Outcome $m	Change on 2014-15 Budget $m
General public services	1,220	914	-306
Defence	6,640	6,711	70
Public order and safety	384	379	-5
Education	29	32	3
Health	74	62	-12
Social security and welfare	306	287	-19
Housing and community amenities	184	55	-129
Recreation and culture	305	271	-34
Fuel and energy	3	11	9
Agriculture, forestry and fishing	105	94	-11
Mining, manufacturing and construction	10	9	-1
Transport and communication	65	55	-10
Other economic affairs	897	734	-164
Other purposes	17	0	-17
Total Government puchases of non-financial assets	10,240	9,613	-626

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¹ There will be differences in the amount of GST received and GST paid to the States and Territories, reflecting timing of payments between financial years and other adjustments (see Part 3, Table 32).

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