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Note 3: Sovereign Revenue

2017 Forecast Actual
Budget
2016
$m
Budget
2017
$m
30 June
2017
$m
30 June
2016
$m
Direct Income Tax Revenue  
Individuals  
27,778 28,445 Source deductions 28,641 27,019
5,865 6,245 Other persons 6,382 5,786
(1,712) (1,598) Refunds (1,638) (1,739)
547 530 Fringe benefit tax 525 502
32,478 33,622 Total individuals 33,910 31,568
Corporate Tax  
10,645 11,720 Gross companies tax 12,228 10,566
(207) (202) Refunds (188) (238)
504 593 Non-resident withholding tax 599 734
2 (10) Foreign-source dividend withholding payments (10) (8)
10,944 12,101 Total corporate tax 12,629 11,054
Other Direct Income Tax  
1,629 1,485 Resident withholding tax on interest revenue 1,472 1,667
604 684 Resident withholding tax on dividend revenue 743 626
2,233 2,169 Total other direct income tax 2,215 2,293
45,655 47,892 Total direct income tax 48,754 44,915
Indirect Income Tax Revenue  
Goods and Services Tax  
29,855 30,812 Gross goods and services tax 31,259 29,366
(10,801) (11,365) Refunds (11,751) (11,158)
19,054 19,447 Total goods and services tax 19,508 18,208
Other Indirect Taxation  
1,836 1,884 Petroleum fuels excise and duty1 1,908 1,876
1,687 1,676 Tobacco excise and duty1 1,677 1,710
1,361 1,431 Road user charges 1,469 1,381
931 970 Alcohol excise and duty1 985 947
175 148 Other customs duty 152 127
522 539 Miscellaneous indirect taxation 520 504
6,512 6,648 Total other indirect taxation 6,711 6,545
25,566 26,095 Total indirect taxation 26,219 24,753
71,221 73,987 Total taxation revenue 74,973 69,668
Other Sovereign Revenue  
2,668 2,806 ACC levies 2,882 2,819
363 387 Fire service levies 392 372
290 281 EQC levies 283 280
274 260 Child support and working for families penalties 262 278
111 103 Court fines 105 100
887 1,060 Other miscellaneous items 1,157 794
4,593 4,897 Total other sovereign revenue 5,081 4,643
75,814 78,884 Total sovereign revenue 80,054 74,311
  1. Includes customs excise-equivalent duty.

More detailed unaudited information on tax revenue and receipts can be found at www.treasury.govt.nz/government/revenue/taxoutturn

The Government provides many services and benefits that do not give rise to revenue. Further, payment of tax does not of itself entitle a taxpayer to an equivalent value of services or benefits, since there is no relationship between paying tax and receiving Crown services and transfers. Such revenue is received through the exercise of the sovereign power of the Crown in Parliament.

Tax revenue is recognised when a tax recognition point has occurred and the tax revenue can be reliably measured as described in the table below.

Tax Revenue
Revenue type Revenue recognition point
Source deductions When an individual earns income that is subject to PAYE
Resident withholding tax (RWT) When an individual is paid interest or dividends subject to deduction at source
Fringe benefit tax (FBT) When benefits are provided that give rise to FBT
Income tax The earning of assessable income during the taxation period by the taxpayer
Goods and services tax (GST) When the purchase or sale of taxable goods and services occurs during the taxation period
Customs and excise duty When goods become subject to duty
Road user charges and motor vehicle fees When payment of the fee or charge is made
Other indirect taxes When the debt to the Crown arises
ACC levies The levy revenue is earned evenly over the levy period
Other levies When the obligation to pay the levy is incurred
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