Where our money comes from
In 2014–15, the ACT Government will receive total revenue (known as General Government Sector (GGS) revenue) of $4.4 billion.
This money comes mainly from Commonwealth Government grants (43%). A further 32% we raise through rates, taxes and charges.
The remaining 25% of the Government's GGS revenue in 2014–15 mainly comprises receipts from the sales of goods and services (for example, payments from other states for interstate patients treated in our hospitals); dividend and income tax equivalent payments from Territory-Owned Corporations and Authorities (like ACTEW); and interest received on money that we have invested.
Two years ago we set out to make our taxation system fairer, simpler and more efficient for the future. This Budget continues that work.
We are continuing to abolish inefficient taxes, including stamp and insurance duties. General rates will rise gradually over this period to replace the revenue lost.
These reforms will support growth in the wider economy as we remove the burden of inefficient taxes.
This Budget delivers further stamp duty cuts as part of an ongoing tax cutting program, with the release of reduced rates for 2017–18. We are also introducing a new, lower flat rate of 5.25% for transactions of greater than $1.455 million.
Insurance taxes will be fully abolished by 1 July 2016. Rates on general insurance will reduce by a third from 6% to 4%, from 1 July 2014. And duty on life insurance will also be cut by a third from 3% to 2%.
In this Budget, we are making land tax fairer by introducing a system of fixed and marginal rate charges for the land tax system. This will share the land tax burden more fairly between units and houses.
We will increase the payroll tax threshold to $1.85 million to support private sector jobs. Businesses will pay less and around 40 businesses will be removed from the payroll tax system altogether. This will help local businesses keep staff and employ new people at this time of economic difficulty. Combined with the 2012 payroll tax cuts, this means each Canberra business, on average, is paying $25,000 less payroll tax annually than before the reforms.
We are also harmonising the calculation of payroll tax for employment agents, raising a further $10 million a year. This will clarify the exemptions that are available and standardise the treatment of contractors placed through employment agents.
And to plug the hole left by the Commonwealth Government reducing its payments to us for fire services, we are raising the Fire and Emergency Services Levy by $4.8 million per annum.
Where our money goes
In 2014–15, the Government will spend $4.9 billion1 in delivering services to Canberra. This does not include our investment in capital infrastructure—$735 million in 2014–15 and $2.5 billion over the next four years.
Health and education are our biggest expenditures. Together they amount to around $2.5 billion a year—50% of our budget.
In 2014–15, we will spend $693 million on our territory and municipal functions and $968 million on measures to further liveability and opportunity, such as community and justice initiatives.
1 General Government Sector Expenditure in 2014–15. The expenses by key priority area do not equal total GGS expenses as they do not include superannuation and other expenses that do not directly correlate to functions.
invested in our health and education
towards growing the economy
for urban renewal
to further liveability and opportunity
|Healthy and Smart||2,504.3|
|Health and Community Care||1389.4|
|Non Government Schooling||237.2|
|Vocational Education and Training||148.8|
|Sport and Recreation||53.9|
|Growing the Economy||328.0|
|Chief Minister and Treasury and Revenue Management||104.4|
|Planning and Regulation||90.1|
|VisitCanberra, Venues and Events and Innovation, Trade and Investment||49.3|
|Executive, Legislative Assembly, Auditor-General and Electoral Commissioner||34.1|
|Arts, Culture and Heritage||30.3|
|Land and Property Services||19.8|
|Territory and Municipal Services||363.5|
|Environment, Sustainability and Land Management||162.7|
|Liveability and Opportunity||967.7|
|Disability and Community Services||288.7|
|Justice and Community Safety||217.1|