Revenue and expenditure


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.

Total Revenue pie graph of ACT Government revenue streams

Tax reform

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.

Building framework

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.

Stethoscope Health IconTeacher Education IconWalking Dog, Riding Bike Lifestyle Icon

$2.5
billion
invested in our health and education

$328
million
towards growing the economy

Dollar Economy IconExcavator Construction IconComputer WIFI Digital Canberra Icon
Tree Environment IconHouse Suburbs IconBus Car Transport Icon

$693
million
for urban renewal

$968
million
to further liveability and opportunity

Ambulance Emergency Services IconFamily Community IconScales Justice Icon

 

$m 
Healthy and Smart  2,504.3 
Health and Community Care  1389.4 
Government Schooling  675
Non Government Schooling  237.2 
Vocational Education and Training 148.8 
Sport and Recreation  53.9 
  $m
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
$m 
Urban Renewal  692.7 
Territory and Municipal Services  363.5 
Public Transport  166.5
Environment, Sustainability and Land Management 162.7
$m
Liveability and Opportunity  967.7 
Disability and Community Services  288.7 
Justice and Community Safety  217.1
Housing  176.3
Policing  154.6
Emergency Services 131
Heating Construction