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Revenue

Table 3 - Breakdown of revenue
Year ended
30 June
Actual 2010 Actual 2011 Actual 2012 Actual 2013 Actual 2014 Forecast
30 June 2014
Budget 13 Budget 14
$million              
Core Crown tax revenue 50,744 51,557 55,081 58,651 61,474 62,393 61,896
Core Crown other revenue 5,472 5,993 5,484 5,498 5,823 5,989 5,879
Core Crown revenue 56,216 57,550 60,565 64,149 67,297 68,382 67,775
Crown entities, SOEs and eliminations 18,509 24,013 22,918 22,506 22,099 23,222 22,202
Total Crown revenue 74,725 81,563 83,483 86,655 89,396 91,604 89,977
% of GDP              
Core Crown tax revenue 26.4% 25.7% 26.3% 27.6% 26.8% 27.4% 26.8%
Core Crown other revenue 2.8% 3.0% 2.6% 2.6% 2.5% 2.6% 2.5%
Core Crown revenue 29.2% 28.6% 29.0% 30.2% 29.4% 30.0% 29.4%
Crown entities, SOEs and eliminations 9.6% 12.0% 11.0% 10.6% 9.6% 10.2% 9.6%
Total Crown revenue 38.6% 40.6% 39.9% 40.8% 39.0% 40.2% 39.0%

Total Crown revenue was $89.4 billion, an increase of $2.7 billion from a year earlier mostly due to higher core Crown tax revenue ($2.8 billion higher).

Core Crown Tax Revenue

All major tax types contributed to the nominal increase in tax over the year, with three tax types making up most of the increase (Table 4):

  • Source deductions: $1.4 billion (6%) higher than the previous year owing to a stronger labour market. More people were employed, and salaries and wages were higher, which added an estimated $0.8 billion and $0.6 billion respectively to source deductions, compared with the June 2013 year.
  • GST: $0.8 billion stronger than 2013 largely owing to growth in domestic consumption.
  • Corporate tax: $0.3 billion higher than the year before, mainly owing to growth in current-year taxable profits of companies, somewhat offset by a decline in 2013 terminal tax.
Table 4 - Increase in core Crown tax revenue ($ billion)
Year ended 30 June  
2013 core Crown tax revenue 58.7
Source deductions 1.4
GST 0.8
Corporate tax 0.3
Other movements 0.3
2014 core Crown tax revenue 61.5

Source: The Treasury

Although core Crown tax increased by $2.8 billion in nominal terms, it declined by 0.8% of GDP (figure 6). The two main reasons for this decline were:

  • Some of the principal drivers of tax revenue, (eg, compensation of employees and private consumption), grew at a slower rate than overall GDP, causing the related tax-to-GDP ratio to decrease by approximately 0.3%, and
  • A decline in terminal tax in 2014 reduced the tax-to-GDP ratio by approximately 0.4%.
  • Compared to forecasts in Budget 2014, core Crown tax revenue was $0.4 billion less than expected, with the largest difference being in GST. GST was $0.3 billion lower than forecast due mainly to weakness in nominal domestic consumption relative to forecast.
Figure 6 - Core Crown tax revenue
Figure 6 - Core Crown tax revenue.
Source:  The Treasury
Figure 7 - Core Crown tax revenue variance comparison
Figure 7 - Core Crown tax revenue variance comparison   .
Source:  The Treasury

Other Revenue

Other revenue includes other fees and levies (eg, ACC levies), revenue from operations of Crown entities (CEs) and State-owned enterprises (SOEs), interest income and dividend income.

Core Crown other revenue, at $5.8 billion was $0.3 billion higher than the previous year, while the SOE and CE sectors (including eliminations) recorded revenue of $22.1 billion, $0.4 billion lower than a year earlier (Table 3 and Figure 8).

Most of the reduction in revenue ($0.4 billion) was attributable to a fall in SOE electricity company revenue; which was more than offset by an equivalent fall in their expenses.

Figure 8 - Other revenue
Figure 8 - Other revenue   .
Source:  The Treasury
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