Revenue
| Year ended 30 June | Forecast 30 June 2011 |
|||||||
|---|---|---|---|---|---|---|---|---|
| Actual 2006 | Actual 2007 | Actual 2008 | Actual 2009 | Actual 2010 | Actual 2011 | Budget 10 | Budget 11 | |
$ million |
||||||||
| Core Crown tax revenue | 50,973 | 53,477 | 56,747 | 54,681 | 50,744 | 51,557 | 53,912 | 51,189 |
| Core Crown other revenue | 4,762 | 4,734 | 5,072 | 4,801 | 5,472 | 5,993 | 6,348 | 5,761 |
| Core Crown revenue | 55,735 | 58,211 | 61,819 | 59,482 | 56,216 | 57,550 | 60,260 | 56,950 |
| Crown entities, SOEs and eliminations | 15,690 | 16,378 | 19,660 | 20,024 | 18,509 | 24,013 | 21,521 | 23,219 |
| Total Crown revenue | 71,425 | 74,589 | 81,479 | 79,506 | 74,725 | 81,563 | 81,781 | 80,169 |
% of GDP |
||||||||
| Core Crown tax revenue | 31.5% | 31.1% | 31.0% | 29.5% | 26.8% | 25.7% | 26.4% | 25.6% |
| Core Crown other revenue | 2.9% | 2.8% | 2.8% | 2.6% | 2.9% | 3.0% | 3.1% | 2.9% |
| Core Crown revenue | 34.4% | 33.8% | 33.7% | 32.1% | 29.7% | 28.7% | 29.6% | 28.5% |
| Crown entities, SOEs and eliminations | 9.7% | 9.5% | 10.7% | 10.8% | 9.8% | 12.0% | 10.6% | 11.6% |
| Total Crown revenue | 44.1% | 43.4% | 44.4% | 42.9% | 39.5% | 40.7% | 40.1% | 40.1% |
- Figure 5 - Core Crown tax revenue
- Source: The Treasury
Total revenue increased over the year by $6.8 billion to $81.6 billion. Core Crown tax revenue contributed $0.8 billion (1.6%) to this increase (figure 5) and $4.2 billion was due to insurance claims on reinsurers as a result of the Canterbury Earthquakes. The impact of the earthquakes on the financial statements is discussed more fully in a separate section on page 12.
Core Crown Tax Revenue
| Year ended 30 June | |
|---|---|
| 2010 core Crown tax revenue | 50.7 |
| Tax cuts | (2.7) |
| Growth in income and domestic consumption | 1.3 |
| Higher business profits | 0.5 |
| Increase in GST rate | 1.6 |
| Other movements | 0.1 |
| 2011 core Crown tax revenue | 51.5 |
Source: The Treasury
Core Crown tax revenue was close to forecast at $51.5 billion. Growth in tax has been diluted by policy changes introduced in Budget 2010. These policy changes had the impact of reducing taxes levied by $2.7 billion. Table 4 summarises the movements from last year. Specifically:
- Salary and wages have increased during the year although the impact of personal income tax cuts have more than offset any increases in tax coming from source deductions.
- Business profits (both corporate and individual) have also increased over the year but again the impact of policy changes through tax cuts have seen lower tax takes from corporate and ‘other individuals' compared with a year earlier.
- On 1 October 2010, the GST rate increased from 12.5% to 15%. In addition there was a small increase in consumption over the year resulting in an increase in GST revenue.
- Figure 6 - Core Crown tax revenue against forecast
- Source: The Treasury
Compared to forecast, core Crown tax revenue was $0.4 billion (0.7%) more than expected. Included in this result were the following items (figure 6):
- Both source deductions tax and GST revenue were higher than expected (by $0.2 billion and $0.5 billion respectively). The source deductions increase was due to stronger wage growth while GST was due to stronger than forecast consumption.
- In contrast, corporate tax and other tax revenue were lower than forecast (by $0.2 billion and $0.1 billion respectively) reflecting weaker than expected business profits and lower than expected customs and excise duties.
- Figure 7 - Other revenue
- Source: The Treasury
Other Revenue
Other revenue includes other sovereign revenue (eg, ACC levies), sales of goods and services, interest income and dividend income.
Other revenue increased by $6.1 billion over the year to $30.4 billion (figure 7). Of this increase in revenue, $4.2 billion relates to EQC's insurance claim on reinsurers and $0.8 billion relates to an increase in sales of goods and services primarily in the SOE and Crown Entity sectors. However, increases in SOE revenue were largely offset by increases in SOE operating expenses. Likewise, revenue from EQC's reinsurers was more than offset by the increase in insurance expenses (refer the Canterbury Earthquakes section on page 12).
The remainder includes $0.9 billion of increases in ACC levies, Emissions Trading Scheme revenues and interest and dividend revenue (primarily due to the increase in Kiwibank mortgages) ($0.3 billion for each).
