Page 4061 - Week 11 - Thursday, 26 September 2019
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|
2019-20f | |
|
$’000 | |
|
Payroll Tax |
156 |
(b) If private sector wages were to increase by 0.1 per cent more than forecast, assuming the increase is proportional across existing taxpayers, payroll tax revenue is estimated to increase by the amount shown below:
|
2019-20f | |
|
$’000 | |
|
Payroll Tax |
543 |
(7) The parameters assumptions for private sector (a) employment and (b) wage growth that underpin the increases in payroll tax in 2019-20 and across each year of the forward estimates are shown below:
|
2019-20f Per cent |
2020-21p Per cent |
2021-22p Per cent |
2022-23p Per cent | |
|
Private Sector Employment Growth(1) |
1½ |
1¾ |
2 |
2 |
|
Private Sector WPI Growth(1) |
2½ |
2¾ |
2½ |
2½ |
Notes:
(1) Growth rates are in year average terms rounded to a ¼ of a percentage point.
(8) The contribution to the growth each year in payroll tax revenue which is attributable to each of employment growth, wages growth and compliance activities in 2019-20 to 2022-23, in dollar and percentage point terms, are shown in the table below.
For 2018-19, the estimated outcome for payroll tax revenue is calculated with reference to the year-to-date outcome and historical trends. As the estimated outcome is calculated on a different basis to the forward estimates (which are modelled), the contributions by component are unavailable.
It should be noted that these figures represent the breakdown of the additional revenue that is to be collected in that year compared to the year before. For example, in 2020-21 compliance revenue is expected to be collected, though not more than the year before. Therefore, no contribution to the overall growth in payroll tax revenue is shown.
|
2018-19e |
2019-20f |
2020-21p |
2021-22p |
2022-23p | |
|
Private Sector Employment Contribution | |||||
|
- ‘$’000 |
10,939 |
11,767 |
12,452 |
13,260 | |
|
- Percentage points |
2.0 |
2.0 |
2.0 |
2.0 | |
|
Private Sector WPI Contribution | |||||
|
- ‘$’000 |
27,180 |
29,453 |
30,764 |
32,183 | |
|
- Percentage points |
5.0 |
5.1 |
4.9 |
4.8 | |
|
Compliance Contribution(1) | |||||
|
- ‘$’000 |
2,000 |
0 |
1,000 |
1,000 | |
|
- Percentage points |
0.4 |
0.0 |
0.2 |
0.1 | |
|
Total Increase | |||||
|
- ‘$’000 |
56,717 |
40,119 |
41,220 |
44,216 |
46,443 |
|
- Per cent |
11.7 |
7.4 |
7.1 |
7.1 |
6.9 |
Note: (1) This is the annual additional revenue from compliance activity.
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