Revenue
|
Year ended 30 June $ million |
Actual 2003 |
Actual 2004 |
Actual 2005 |
Actual 2006 |
Actual 2007 |
Forecast Original Budget |
Forecast Est Actuals |
Actual 2008 |
|---|---|---|---|---|---|---|---|---|
| Core Crown tax revenue | 40,518 | 43,358 | 47,468 | 50,973 | 53,477 | 54,707 | 56,673 | 56,747 |
| Core Crown other revenue | 2,922 | 2,861 | 3,577 | 4,762 | 4,734 | 4,695 | 5,263 | 5,072 |
| Core Crown revenue | 43,440 | 46,219 | 51,045 | 55,735 | 58,211 | 59,402 | 61,936 | 61,819 |
| Crown entities, SOE and eliminations | 13,170 | 13,051 | 14,322 | 15,690 | 16,378 | 17,470 | 17,877 | 19,660 |
| Total Crown revenue | 56,611 | 59,271 | 65,367 | 71,425 | 74,589 | 76,872 | 79,813 | 81,479 |
| Core Crown revenue | 43,440 | 46,219 | 51,045 | 55,735 | 58,211 | 59,402 | 61,936 | 61,819 |
| Less NZS Fund revenue | (69) | (131) | (191) | (359) | (436) | (447) | (381) | (385) |
| Add back NZS Fund intra-segment revenue | - | 77 | 234 | 468 | 707 | 349 | 259 | 237 |
| Core Crown revenue (excl NZS Fund) | 43,371 | 46,165 | 51,088 | 55,844 | 58,482 | 59,304 | 61,814 | 61,671 |
Revenue consists mainly of tax revenue. Other revenue includes interest, dividends, and sales of goods and services.
Core crown revenue excluding the NZS Fund represents the revenue available to meet the Government's spending needs and treats the NZS Fund as a third party (ie, its revenue is not included but the tax it pays is).
Core Crown revenue excluding the NZS Fund was $143 million (0.2%) lower than forecast at $61,671 million. While interest revenue was $219 million (8.5%) lower than forecast due to changes in interest rates and investment levels, this was partially offset by core Crown tax revenue being $74 million (0.1%) higher than forecast. While core Crown tax revenue was largely on target, there were two compensating variances within this result.
- source deduction revenue was $613 million (2.7%) higher than forecast largely due to higher than forecast wage growth, offset by
- GST revenue was $662 million (5.6%) lower than forecast due in the main to weaker-than-expected domestic consumption. In addition the forecast assumed the gap would close between GST revenue and receipts but this did not eventuate.
- Figure 2 - Core Crown revenue excluding the NZS Fund
- Source: The Treasury
- Figure 3 - Core Crown tax revenue
- Source: The Treasury
Compared to last year, core Crown revenue excluding the NZS Fund increased by $3,189 million (5.5%). This increase was mainly in source deductions tax revenue, caused by high wage and employment growth.
Core Crown tax revenue has increased as a percentage of GDP since 1999 as a result of the progressive nature of the personal tax scale (coupled with the introduction of the 39% personal income tax rate), growth in taxable corporate profits ahead of GDP growth, and increases in interest rates which have led to increases in withholding taxes on interest-bearing deposits.
