Annual Report 2006: Part two - Delivering on our outcomes
Tax revenue
During 2005-06 we assessed tax revenue of $46.82 billion, which was $3.3 billion above forecast for 2005-06. This includes $1.8 billion favourable variance due to changing the accounting recognition policy for provisional tax from a cash to an accruals basis. It was also $4.8 billion more than in 2004-05.
During the year, we assessed 85.1% of core Crown revenue3(compared to 85.0% in 2004-05). Our contribution has increased by 4.0 percentage points over the past five years, largely due to the growth in tax collected from companies and individuals. Other agencies, such as the New Zealand Customs Service, account for the balance of core Crown revenue.
The breakdown of the actual revenue assessed into direct and indirect taxation4 and tax type are shown below.
|
2003-04 $ billion |
2004-05 $ billion |
2005-06 $ billion | |
|---|---|---|---|
| Direct tax |
$29.2 |
$32.8 |
$37.3 |
| Indirect tax |
$8.8 |
$9.2 |
$9.5 |
| Total |
$38.0 |
$42.0 |
$46.8 |
Figure 3 -
Tax revenue by tax type
To illustrate the composition of tax revenue across other countries' tax administrations, the following table shows the percentage of major tax types for the 2004-05 tax year. As the table shows there is a reasonable degree of commonality between the composition of Australian and New Zealand tax revenue.
| Ireland | Canada | United Kingdom |
Australia | New Zealand | |
|---|---|---|---|---|---|
| Income tax |
26% |
42% |
34% |
49% |
51% |
| Company tax |
11% |
12% |
9% |
19% |
19% |
| GST/VAT |
29% |
4% |
19% |
16% |
21% |
| Other6 |
34% |
42% |
38% |
16% |
9% |
2. For details of the change in accounting policy see Part Six, Financial Schedules for Administered Accounts - Crown.
3. Total revenue levied through the Crown's sovereign power. It comprises taxation, levies, fees, fines and penalties, but excludes investment income, sales of goods and services, and other sources of revenue.
4. Direct taxation relates to the economic action of the agents that bear it. The most common example is income tax. Indirect taxation does not relate to the economic action of the agent, for example, GST.
5. This table is illustrative only. Because each country has a different tax system structure, the data is not strictly comparable.
6. "Other" contains the balance of taxes collected. Note that there is variation in what is included in "other", including indirect taxes and duties and national superannuation contributions.
Date published: 06 Nov 2006
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