ABS 2016/17 Australian tax statistics – Income tax largest (33% of total taxes) and fastest growing at 6.0%

On 26.4.18, the Australian Bureau of Statistics (ABS) released its report on Taxation Revenue in Australia, as up to the 2016/17 financial year.

TOTAL taxation revenue collected in Australia:

1. increased $23,283m (5.0%) from $465,216m in 2015-16 to $488,499m in 2016-17.
2. This was driven by a $16,030m (6.0%) increase in taxes on income and a $2,971m (2.7%) increase in taxes on provision of goods and services.
3. In 2016-17, taxes on income represented 57.6% 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 23.2%.

COMMONWEALTH Government taxation revenue (including taxes received from other levels of government and public corporations)

1. increased $19,405m (5.2%) from $370,392m in 2015-16 to $389,797m in 2016-17.
2. In 2016-17, Commonwealth taxation revenue represented 79.8% of taxation revenue for all levels of government.
3. 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)

1. increased $3,158m (4.0%) from $79,097m in 2015-16 to $82,255m in 2016-17.
2. This was driven by a $2,145m (6.5%) increase in property taxes, a $510m (2.2%) increase in employers’ payroll taxes and a $351m (3.0%) increase in taxes on use of goods and performance of activities.
3. Taxes on property was the largest source of taxation revenue (42.7%) for state governments in 2016-17, followed by employers’ payroll taxes (28.2%).
4. The following graph shows the level of taxation revenue for state governments by source.

6.5.18

[ABS Website: Australian Taxes Report; FJM; LTN 78, 26/4/18; Tax Month – April 2018]

Study questions (answers available)

1. Was total Commonwealth tax revenue about 6 times total state revenue, in the 2016/17 year being about $488 b and  $82,255m?
2. Did Federal income tax grow more slowly, than GST (at 2.7% and 6.0% respectively)?
3. Were taxes on property was the largest source of taxation revenue (42.7%) for state governments, in 2016-17, followed by employers’ payroll taxes (28.2%)