Tax revenue surges by double-digits in 2022-23
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The news: The tax take across all levels of government surged 10.6% in 2022-23, compared to the year before, according to latest figures from the Australian Bureau of Statistics (ABS).
The government’s net operating balance increased from to $38.3 billion in 2022-23, from -$34.7 billion in 2021-22.
The numbers: Total taxation revenue reached $755.8 billion in 2022-23, or about 29.5% of GDP. This was $72.7 billion higher than 2021-22. Every level of government recorded a rise in tax revenue.
The Commonwealth government took the lion’s share of taxation revenue at $61.8 billion, up 12.3% year on year.
In terms of states and territories, the ACT had the biggest increase up 6.7%. This was followed by Western Australia up 6.4%. Victoria and South Australia were each up 5.9%. Tasmania increased 4.5%, Queensland 2.9% and NSW 1.8%. The Northern Territory saw its tax revenue declined by 6.7%.
Local governments have also seen tax revenues increase markedly in some areas.
The context: Australia’s net operating balance has experienced its second biggest increase over the past decade as government revenue increased much faster than expenses.
Taxation revenue has been the biggest contributor to the increase, or about 78.6% of total revenue growth, with the ABS noting personal income tax, company tax, GST and payroll tax as the major sources.
There was a 61% decline in income tax paid by superannuation funds and a rise in excises on crude oil LPG and petroleum products on the back of indexation linked to CPI.
Expenses were largely driven by an 18.8% rise in general public services, or about $14.8 billion more, and a 5.4% rise in education, about $6.7 billion. The environmental protection bill is up 12.6%, totalling $2.4 billion more, while social protection and health increased by 0.9% and 0.6% respectively.
