Total accrual revenue in 2005-06 of $221.9 billion was $946 million below the estimate in the 2006-07 Budget, reflecting lower than expected company taxation revenue, partly offset by stronger than expected non-taxation revenue.
Company taxation revenue rose by a solid 13.6 per cent in 2005-06 but was $1.5 billion (3 per cent) lower than forecast at the 2006-07 Budget. Strong growth in mining sector profits continues to underpin growth in company tax. But weaker than expected growth was observed in the wash-up payments of a number of small June balancing companies in the manufacturing, construction, retail and wholesale services sectors.
The variation in company taxation revenue was partly offset by higher than expected non-taxation revenue of $307 million including:
- $97 million for the Department of Health and Ageing mainly reflecting the earlier than anticipated payment of the competitive neutrality charge on medical indemnity insurers benefiting from the Government’s incurred but not reported indemnity scheme;
- $69 million for the Defence Housing Authority due in part to greater than anticipated revenue from property sales; and
- $46 million for the Australian Office of Financial Management primarily due to higher than anticipated term deposit interest revenue.
Table 2: Australian Government general government sector revenue
- Includes Medicare levy revenue of $6,525 million in 2005-06.