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Legislative Assembly for the ACT: 2019 Week 11 Hansard (Thursday, 26 September 2019) . . Page.. 4061 ..


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)

2

2

Private Sector WPI

Growth(1)

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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