Budget Paper No.2 Fiscal and Economic Outlook 2008-2009
Tabled paper 1293
Tabled papers for 10th Assembly 2005 - 2008; Tabled papers; ParliamentNT
Tabled By Delia Lawrie
Made available by the Legislative Assembly of the Northern Territory under Standing Order 240. Where copyright subsists with a third party it remains with the original owner and permission may be required to reuse the material.
2008-09 Budget 32 Fiscal Strategy Table 3.6 shows that the Territorys tax collections per capita for 2008-09 are estimated at $1848, compared with $2624 for the average of the other jurisdictions. The 2007-08 and 2008-09 estimates continue to increase reflecting high levels of economic activity, however the Territory remains the second lowest jurisdiction for taxation revenue per capita, after Tasmania. 2006-07 Actual 2007-08 Estimate 2008-09 Budget $ per capita $ per capita $ per capita New South Wales 2 564 2 686 2 785 Victoria 2 240 2 405 2 512 Queensland 2 019 2 324 2 520 Western Australia 2 699 3 006 3 049 South Australia 1 894 2 150 2 186 Tasmania 1 513 1 757 1 725 Australian Capital Territory 2 732 2 942 3 034 State Average 2 314 2 517 2 624 Northern Territory 1 700 1 835 1 848 Source: State and territory outcome reports, state and territory mid-year reports; ABS Cat. No.3101.0. Population figures are based on latest ABS data as at September 2007 Although taxation per capita is a useful comparative measure, it is limited in that it does not make allowances for differences in jurisdictional capacity to raise revenue. A more sophisticated measure of tax competitiveness is the Commissions analysis of tax effort, which adjusts for the extent to which a particular jurisdictions capacity to raise revenue is above or below average. Table 3.7 details the Territorys revenue raising capacity and effort expressed as a percentage of the Australian average in 2006-07, the latest year assessed by the Commission. Capacity1 Effort2 % % Total Taxation 77 102 Total Own-Source Revenue 90 96 1. Northern Territorys capacity to raise revenue compared with the Australian average 2. Northern Territorys revenue effort compared with the Australian average, given the capacity available Source: Commonwealth Grants Commission 2008 Update The table shows that the Territorys capacity and effort are below the national average and in terms of effort is assessed as the second lowest of all jurisdictions, behind Queensland. This, together with the per capita measure, demonstrates that the Territory continues to provide a competitive tax environment for Territorians. Table 3.6: Taxation Revenue per Capita General Government Table 3.7: Northern Territory Revenue Raising Capacity and Effort (200607 Australian average = 100 per cent)