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Legislative Assembly for the ACT: 2002 Week 7 Hansard (6 June) . . Page.. 2095 ..

Payroll tax collections

(Question No 175)

Mr Humphries asked the Treasurer, upon notice, on 4 June 2002:

(1) What is the quantum of payroll tax collected in the ACT for the current financial year as at 31 March 2002?

(2) Is the quantum of payroll tax collected as at 31 March 2002 greater or less than the estimates prepared for the 2001 ACT Budget?

(3) What has been the trend in the payment of payroll tax during the period between 1 October 2001 and 31 March 2002?

(4) How has this pattern of payment of payroll tax varied from the same period in the previous financial year?

(5) What has been the basis for any changes in the pattern of payments of payroll tax between this and the previous financial year?

Mr Quinlan: The answer to the member's question is as follows:

(1) As at 31 March 2002, $111.1m of Payroll Tax had been collected and recorded as revenue.

(2) The 2001 ACT Budget forecasted Payroll Tax totalling $152.7m to be recognised as revenue during the 2001-02 financial year. As of 31 March, collections of $111.1m represent 73% of the original budget estimate (or 75% of the 2001-02 revised estimated outcome).

(3) Total Payroll Tax, as at 1 October 2001 was $39.1m. The average collection, per month, during the period 1 October 2001 to 31 March 2002 was $12m.

(4)

Payroll Tax

Oct

Nov

Dec

Jan

Feb

Mar

$'000

$'000

$'000

$'000

$'000

$'000

2000-01

Month

8,968

12,277

12,355

17,055

13,018

11,539

YTD

48,502

60,779

73,134

90,189

103,207

114,746

% of Audit

31%

39%

46%

57%

65%

73%

2001-02

Month

14,100

7,599

14,051

10,732

12,435

13,130

YTD

53,158

60,757

74,808

85,540

97,975

111,105

% of Est Out

36%

41%

51%

58%

66%

75%

The above table indicates the pattern of revenue for the two periods.

(5) The basis for the decline in 2001-02 payroll tax in total is due to:

a reduction in employment in the ACT; and

an increase in the use of contract employment, particularly by large employers. This is encouraged by the ability to claim input tax credits and savings in labour costs (eg superannuation and workers compensation).

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