Relative to the Mid-Year Economic and Fiscal Outlook 2006-07 (MYEFO), total revenue for 2007-08 is expected to be higher, with stronger growth in taxation from individual and company income and superannuation funds. The underlying growth in taxation revenue has been partially offset by policy changes in this budget. Personal income tax cuts of $31.5 billion over four years will commence on 1 July 2007. These tax cuts are in addition to those announced in the 2005-06 and 2006-07 Budgets.
Revenue estimates for 2006-07 and 2007-08, together with projections for the period from 2008-09, are provided in Table 1.
Table 1: Total Australian Government general government revenue(a)
- The revenue estimates in this statement exclude GST revenue, which is collected by the Australian Government and provided in full to the States and Territories. A discussion of GST revenue is provided in Budget Paper No. 3, Federal Financial Relations 2007-08.
- Real growth is calculated using the non-farm gross domestic product (GDP) deflator.
Total revenue as a percentage of GDP is expected to decrease in 2007-08 to 22.5 per cent of GDP, before returning to around its 2006-07 level by the end of the forward estimates.