The ACT had the biggest increase in taxation revenue in the country this past financial year, and is the second-highest taxing jurisdiction, according to an Australian Bureau of Statistics report published today.
Across Australia, total taxation revenue in 2022–23 was $755.8 billion: $72.7 billion higher (10.6 per cent) than in 2021–22, and 29.5 per cent of GDP.
The ACT’s total taxation revenue was $2.6 billion, 6.7 per cent more than last year.
The ACT’s taxation revenue per capita was $5,610, 4.8 per cent more than the previous year ($5,355): the biggest change in the country, 3 per cent above the national average change. It was the second highest taxation revenue per capita after Victoria ($5,795).
A spokesperson for Chief Minister and Treasurer Andrew Barr said that increased revenues in 2022–23 were largely driven by strong payroll tax receipts from national and multinational companies due to increased employment in the ACT and stronger wage growth. The ACT’s payroll tax free threshold is set at $2 million, which means that most small to medium local businesses do not pay the tax.
Revenue from duties fell 10 per cent between 2021–22 and 2022–23. The ACT – thanks to the tax reform program – was shielded in comparison to other jurisdictions who are more reliant on conveyance duties, the spokesperson said.
Opposition leader Elizabeth Lee, however, said that the ACT’s high taxes were caused by the Chief Minister’s “decade-long mismanagement” of the budget.
“Andrew Barr has failed to deliver a single surplus for more than a decade, racked up tens of billions of dollars’ worth of debt, with an interest bill that will total more than $685 million, resulting in the first credit rating downgrade in 20 years.
“What the ABS data clearly shows is that the Labor-Green government’s last-ditch attempt to fix this spiralling budget over the next few years is to rapidly increase taxes.
“Since the ACT Government announced its taxation reform to abolish stamp duty, Andrew Barr has collected more from stamp duty than he did a decade ago, whilst more than doubling the revenue he receives from rates.
“This government has also foisted taxes on local businesses, General Practice patients, and renters in a desperate move to fund their out-of-control waste which has totalled hundreds of millions of taxpayers’ dollars.
“Canberrans should not have to pay the price for bailing out an inept Treasurer and incompetent government, especially during a cost-of-living crisis.
“The ABS data proves that Andrew Barr’s legacy over the past decade is to tax Canberrans more and more whilst failing them across all essential government services.”
Mr Barr’s spokesperson responded: “It is shameful that the Canberra Liberals are opposed to big business paying their fair share of tax in the ACT.”
