Australian Government, 2013-14 Budget
Budget

Part 1: Australian Government Budget Outcome (continued)

Fiscal balance

The 2013‑14 fiscal balance deficit was $43.7 billion, a $1.3 billion improvement on the deficit of $45.1 billion estimated at the time of the 2014‑15 Budget.

While the change in the fiscal balance since the 2014‑15 Budget is comparable to the change in the underlying cash balance of $1.4 billion, there are some revenue and expenses and net capital investment variations that have different cash impacts in 2013‑14. The major differences are outlined below.

Revenue

Total revenue was $373.9 billion in 2013‑14, $317 million lower than estimated at the time of the 2014‑15 Budget. In comparison, total cash receipts were $360.3 billion in 2013‑14, $3.2 billion lower than estimated at the time of the 2014‑15 Budget.

Taxation revenue was $351.1 billion in 2013‑14, $131 million higher than the estimate at the time of the 2014‑15 Budget.

Carbon pricing mechanism revenue in 2013‑14 was $717 million (9.8 per cent) lower than expected at the 2014‑15 Budget, reflecting information from interim emissions reports and an estimate of accrued carbon price revenue based on the audited accounts of the Clean Energy Regulator. The estimate is considered preliminary as certain emitters are not required to report in interim emissions reports, and emitters may base their interim report on the previous year's emissions. Information on actual 2013‑14 emissions will become available following the final emissions reporting in October 2014.

Total non‑tax revenue was $22.9 billion in 2013‑14, $449 million lower than estimated at the 2014‑15 Budget. Non‑tax receipts were $22.0 billion, $100 million higher than estimated at Budget.

The $349 million difference in outcomes for non‑tax revenue and non‑tax receipts is largely a result of decreases to non‑tax revenue, which did not have a corresponding non‑tax receipt impact in 2013‑14, including a lower dividend from the Reserve Bank of Australia (RBA) than estimated at the time of the 2014‑15 Budget, reflecting a larger transfer from RBA net profits to the Reserve Bank Reserve Fund based on a review of the outlook for the RBA's capital requirements.

Table 4: Australian Government general government sector (accrual) revenue
  2013‑14
Estimate at
2014-15
Budget
$m
2013‑14
Outcome


$m
Change on
2014-15
Budget

$m
Individuals and other withholding taxes      
Gross income tax withholding 158,300 157,761 -539
Gross other individuals 37,180 37,561 381
less: Refunds 27,100 27,407 307
Total individuals and other withholding tax 168,380 167,915 -465
Fringe benefits tax 4,140 4,285 145
Company tax 69,400 68,764 -635
Superannuation fund taxes 6,580 6,146 -434
Minerals resource rent tax(a) 170 141 -29
Petroleum resource rent tax 1,470 1,645 175
Income taxation revenue 250,140 248,897 -1,243
Goods and services tax 54,321 55,517 1,196
Wine equalisation tax 810 826 16
Luxury car tax 430 476 46
Excise and customs duty      
Petrol 5,890 5,927 37
Diesel 8,820 8,758 -62
Other fuel products 3,600 3,572 -28
Tobacco 7,770 8,531 761
Beer 2,330 2,307 -23
Spirits 1,890 1,902 12
Other alcoholic beverages(b) 960 908 -52
Other customs duty      
Textiles, clothing and footwear 770 789 19
Passenger motor vehicles 920 921 1
Other imports 1,660 1,633 -27
less: Refunds and drawbacks 360 319 -41
Total excise and customs duty 34,250 34,929 679
Carbon pricing mechanism(c) 7,340 6,623 -717
Agricultural levies 476 491 15
Other taxes 3,190 3,329 140
Indirect taxation revenue 100,817 102,191 1,374
Taxation revenue 350,956 351,088 131
Sales of goods and services 8,853 8,573 -280
Interest 3,445 3,341 -104
Dividends 4,288 4,105 -183
Other non-taxation revenue 6,724 6,843 118
Non-taxation revenue 23,310 22,862 -449
Total revenue 374,267 373,950 -317
Memorandum:      
Total excise 25,230 25,648 418
Total customs duty 9,020 9,280 260
Medicare and DisabilityCare Australia levy 10,480 10,309 -171

(a) Net revenue from the MRRT was $0.1 billion in 2013‑14 which represents the net revenue impact across different revenue heads. These include offsetting reductions in company tax (through deductibility) and interactions with other taxes.

(b) Other alcoholic beverages are those not exceeding 10 per cent by volume of alcohol (excluding beer, brandy and wine).

(c) Tax revenue includes carbon accrual revenue measured at the legislated price, with details of the accounting treatment of carbon revenue set out in Note 2 to the General Government Sector Financial Statements.

Expenses and net capital investment

Total expenses were $413.8 billion in 2013‑14, $1.4 billion lower than estimated at the time of the 2014‑15 Budget. Total net capital investment for 2013‑14 was $3.8 billion, $177 million lower than the estimate of $4.0 billion at the time of the 2014‑15 Budget. In comparison, cash payments were $406.4 billion in 2013‑14, $4.2 billion lower than the estimate at the time of the 2014‑15 Budget.

The difference of $2.6 billion between the lower than estimated net outcome for expenses and net capital investment and the outcome for cash payments includes:

  • expenses for all free carbon units issued or approved for issue during 2013‑14 which were broadly in line with Budget estimates. However, cash payments in relation to the redemption of these units under the buy‑back facility are lower by $2.2 billion due to lower than expected usage of the facility;
  • higher than expected expenses ($624 million) claimed through the Australian Taxation Office in 2013‑14 due to the continued operation of the Low Income Superannuation Contribution programme;
  • the provision of GST to the States and Territories, reflecting higher than estimated GST collections ($370 million).1

These increases were broadly offset by lower than expected write‑offs of tax penalties ($467 million) by the Australian Taxation Office.

Further information on expenses by function and sub‑function are provided in Appendix A.

Table 5: Australian Government general government sector expenses by function
  2013‑14
Estimate at
2014-15
Budget
$m
2013‑14
Outcome


$m
Change on
2014-15
Budget

$m
General public services      
Legislative and executive affairs 1,334 1,401 68
Financial and fiscal affairs 17,652 16,995 -658
Foreign affairs and economic aid 6,060 6,011 -49
General research 2,724 2,717 -7
General services 714 684 -30
Government superannuation benefits 5,667 5,834 167
Defence 22,840 22,113 -727
Public order and safety 4,446 4,368 -77
Education 29,707 29,669 -38
Health 64,511 63,983 -528
Social security and welfare 140,569 140,566 -3
Housing and community amenities 8,383 8,355 -28
Recreation and culture 3,725 3,749 24
Fuel and energy 7,047 6,749 -298
Agriculture, forestry and fishing 2,629 2,385 -244
Mining, manufacturing and construction 3,139 3,451 313
Transport and communication 8,495 8,407 -89
Other economic affairs      
Tourism and area promotion 189 188 -1
Total labour and employment affairs 4,064 3,879 -185
Immigration 4,656 4,404 -251
Other economic affairs nec 2,355 2,367 12
Other purposes      
Public debt interest 13,454 13,414 -40
Nominal superannuation interest 8,320 8,214 -106
General purpose inter-governmental transactions 53,224 53,563 339
Natural disaster relief 183 377 194
Contingency reserve -793 0 793
Total expenses 415,294 413,845 -1,449
Table 6: Australian Government general government sector net capital investment by function
  2013‑14
Estimate at
2014-15
Budget
$m
2013‑14
Outcome


$m
Change on
2014-15
Budget

$m
General public services 546 258 -288
Defence 2,825 3,371 546
Public order and safety 44 29 -16
Education 9 10 1
Health -14 -13 1
Social security and welfare -22 -77 -54
Housing and community amenities 96 -26 -123
Recreation and culture 31 -44 -76
Fuel and energy -1 1 2
Agriculture, forestry and fishing 78 65 -13
Mining, manufacturing and construction 4 3 -1
Transport and communication -1 -7 -6
Other economic affairs 452 280 -173
Other purposes -22 0 22
Total net capital investment 4,027 3,850 -177
Table 7: Australian Government general government sector purchases of non‑financial assets by function
  2013‑14
Estimate at
2014-15
Budget
$m
2013‑14
Outcome


$m
Change on
2014-15
Budget

$m
General public services 1,220 914 -306
Defence 6,640 6,711 70
Public order and safety 384 379 -5
Education 29 32 3
Health 74 62 -12
Social security and welfare 306 287 -19
Housing and community amenities 184 55 -129
Recreation and culture 305 271 -34
Fuel and energy 3 11 9
Agriculture, forestry and fishing 105 94 -11
Mining, manufacturing and construction 10 9 -1
Transport and communication 65 55 -10
Other economic affairs 897 734 -164
Other purposes 17 0 -17
Total Government puchases of non-financial assets 10,240 9,613 -626

1 There will be differences in the amount of GST received and GST paid to the States and Territories, reflecting timing of payments between financial years and other adjustments (see Part 3, Table 32).

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