CHANGES IN STATE BUDGETS
2000-01 TO 2010-11
INFORMATION PAPER
OCTOBER 2012
CONTENTS
INTRODUCTION
2
SUMMARY OF FINDINGS
2
CHANGES IN STATE BUDGET POSITIONS
3
The impact of Commonwealth payments
5
REVENUE FROM ALL SOURCES
7
STATE OWN-SOURCE REVENUE
11
Changes in own-source revenue
Contribution to the growth of State own-source revenue
12
17
COMMONWEALTH PAYMENTS
20
OPERATING EXPENSES
23
Changes in State expense patterns
Contribution to expense growth
27
27
INVESTMENT
30
ATTACHMENT A: ADDITIONAL TABLES
34
i
INTRODUCTION
1
2
This paper explores changes in State budgets between 2000-01 (when the Goods and
Services Tax (GST) was introduced) and 2010-11. It shows:

the changes in State budget positions

the most important State revenues, expenses and investment

the changes in the relative importance of different revenues and expenses

the main contributors to growth in State budgets.
The analysis in this paper covers the State general government sector only. It uses
data from ABS Government Finance Statistics (GFS) and Taxation Revenue
publications, unpublished ABS GFS data, some ABS National Accounts data and
Commonwealth and State budget data. As with all comparisons, there are some
caveats. Differences across States mean some interstate comparisons must be
interpreted with care; for example, the ACT data cover both State and local
government responsibilities. Further, different decisions on whether services are
delivered by the general government or the public corporations sector can affect the
way revenues and expenditures are recorded.1
SUMMARY OF FINDINGS
1
2

The States as a whole recorded an operating surplus in each year of the decade.

As a share of State economies2, Commonwealth payments and State expenses
remained relatively stable; State own-source revenues have fallen since
2007-08; and investment increased rapidly after 2004-05 — it more than
doubled between 2005-06 and 2010-11.

States moved from being net lenders in most of the early part of the decade, to
being net borrowers in 2007-08 and thereafter.

States became borrowers because they increased their investment (above that
funded by the Commonwealth) and the growth in their own expenditure
exceeded the growth in their own revenues.

Commonwealth payments contributed the most to total revenue growth.

Specific purpose payments (SPPs) and National partnership payments (NPPs)
became more important sources of Commonwealth payments than the GST,
For example, welfare housing services are delivered by the general government sector in Queensland,
Tasmania and the Northern Territory and by public non-financial corporations (PNFCs) in the other
States. As a result, the housing data for Queensland, Tasmania and the Northern Territory include
gross housing expenses and user charges (called ‘sales of goods and services’ in GFS terms), but the
housing data for the other States include subsidies to housing PNFCs.
Gross State Product (GSP) is used to measure the size of State economies.
2
contributing to most of the growth in Commonwealth payments since 2008-09.

Payroll tax and stamp duty on conveyances were the most important
own-source revenues over the decade, but mining revenue grew the fastest and
became more important to State own-source revenue, especially after 2007-08.

Mining revenue’s fast growth did not stop State total own revenue declining as
a share of State economies after 2006-07.

Education and health were the most important services, with health spending
contributing more to the growth in operating expenses.

In 2010-11, most investment in all States was on education and roads but the
proportions varied enormously over the period and by State.
CHANGES IN STATE BUDGET POSITIONS
3
Table 1 and Figure 1 show the budget positions of the States as a whole for 2000-01
to 2010-11. Table 1 shows States had an operating surplus throughout the period.
4
Overall State budgets moved from a net borrowing position in 2000-01 to a net
lending position in 2002-03. The States were net lenders from 2002-03 to 2006-07
but became net borrowers in 2007-08 and have remained in that position.
5
Table 1 also shows Commonwealth payments and State expenses remained relatively
stable over the period as a share of State economies, but their own source revenue
share fell from 2007-08.
6
State investment3 increased rapidly after 2004-05. In 2009-10 and 2010-11,
investment as a proportion of State economies was more than twice that of 2005-06,
mainly due to the Commonwealth’s increased capital payments to the States
following the Global Financial Crisis.
7
Figure 1 shows changes in State revenue and expenses in nominal and real terms
(2009-10 prices). It shows that in real terms, Commonwealth payments, GFS expenses
and investment all increased steadily throughout the period and peaked in 2009-10.
State own-source revenue at first increased but declined after 2007-08.
8
In the rest of this paper, our analysis is based on revenue and expenditure data in
nominal terms.
3
Referred to as ‘Net acquisition of non-financial assets’ in Table 1.
3
Table 1
State budget positions (GFS), 2000-01 to 2010-11
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
$m
$m
$m
$m
$m
$m
$m
$m
$m
$m
$m
101 131
106 706
113 782
124 097
131 929
142 348
153 669
161 163
173 875
194 551
200 294
Total own source revenue
54 151
53 640
58 875
66 666
69 987
75 648
83 401
84 060
88 420
93 197
102 349
C’wth payments
47 111
52 884
54 452
57 079
61 424
65 558
69 166
76 012
84 088
100 021
96 634
49
182
455
351
518
1 141
1 101
1 091
1 366
1 333
1 311
99 907
104 499
109 590
117 471
125 382
134 694
145 945
157 184
173 663
191 210
198 199
1 403
2 207
4 192
6 626
6 548
7 654
7 724
3 979
212
3 342
2 094
3 158
3 077
2 380
2 234
2 745
4 602
6 548
8 297
10 936
17 706
17 431
-1 755
- 870
1 811
4 393
3 802
3 053
1 175
-4 318
-10 724
-14 364
-15 337
7.7
7.1
7.4
7.8
7.6
7.6
7.7
7.1
7.1
7.2
7.3
GFS revenue (a)
Grants and subsidies from
other sources
Less
GFS expenses (a)
Equals
GFS Net Operating Balance
Less
Net acquisition of nonfinancial assets (b)
Equals
GFS Net
Lending(+)/Borrowing(-)
Proportion of GSP (%) (c)
GFS revenue
Own-source revenue
Commonwealth payments
Total
6.7
7.0
6.8
6.6
6.7
6.6
6.4
6.5
6.7
7.7
6.9
14.3
14.1
14.2
14.4
14.3
14.3
14.2
13.7
13.9
15.0
14.3
14.1
13.8
13.7
13.7
13.6
13.5
13.5
13.4
13.9
14.8
14.1
0.4
0.4
0.3
0.3
0.3
0.5
0.6
0.7
0.9
1.4
1.2
14.6
14.2
14.0
13.9
13.9
14.0
14.1
14.1
14.7
16.2
15.4
Expenditure
GFS expenses
Net acquisition of nonfinancial assets (b)
Total
Note:
(a)
(b)
(c)
Source:
C’wth refers to Commonwealth.
The GFS revenue and expenses in this table are the totals of State general government sector. They
are the consolidated outcomes after removing the transactions between States, which do not equal
to the sums of State totals used in Table 3 and Table 8.
Investment in new assets. Excludes assets funded from depreciation.
GSP refers to Gross State Product.
1. ABS GFS (5512.0), 2009-10 and 2010-11.
2. Final consumption expenditure, ABS Australian National Accounts (5206.0), 2011-12.
4
Figure 1
Change in revenue and expenditure, all States, 2000-01 to 2010-11 (a)
190
GFS expenses (real terms)
Dollars billion
GFS expenses (nominal )
140
Own-source revenue (real terms)
90
C'wth payments (real terms)
C'wth payments (nominal)
Own-source revenue (nominal)
40
Dollars billion
20
Investment (nominal)
Investment (real terms)
10
0
2000-01
(a)
Source:
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
The real terms figures are based on 2009-10 prices.
Commission analysis of ABS GFS and final consumption expenditure.
The impact of Commonwealth payments
9
State budgets are heavily influenced by the receipt and spending of funds from the
Commonwealth. To illustrate that impact, this section removes all Commonwealth
payments and the spending of them from State revenues, expenses and investment.
We assume the Commonwealth funds are used in the year of receipt.
10
Table 2 shows the State budget aggregates without Commonwealth payments in
$ million and as a share of Gross State Product (GSP). Figure 2 shows the impact on
net operating outcomes of removing these payments.
11
State own revenues as a share of State economies fell significantly in 2007-08 and
have not recovered. However, State own spending continued to grow at about the
rate of State economies so that States ‘own account’ budgets moved into deficit in
2007-08 and stayed there for the remainder of the period being considered.
12
By removing the impact of Commonwealth payments, it is possible to disaggregate
the deterioration in State finances (as measured by the net borrowing position), into
the growth in State investment (over and above that funded by the Commonwealth)
and the faster growth in their own expenses. Net lending increased to over $15 billion
since 2006-07. Some $3 billion of that increase was caused by higher levels of
investment, the rest because expenses grew faster than State’s own revenues.
5
Table 2
State budget positions (own account), 2000-01 to 2010-11 (a)
Own account revenue (b)
less
Expenses funded by own
account revenue (c)
equals
Own account operating
balance
less
Own account investment
(d)
equals
Net Lending(+)/
Borrowing(-)
200001
200102
200203
200304
200405
200506
200607
200708
200809
200910
201011
$m
$m
$m
$m
$m
$m
$m
$m
$m
$m
$m
54 200
53 822
59 330
67 018
70 505
76 790
84 503
85 151
89 787
94 530
103 660
55 399
54 379
57 675
62 812
66 671
72 124
80 538
85 842
96 674
106 643
113 390
-1 199
- 557
1 655
4 206
3 834
4 665
3 965
- 691
-6 887
-12 113
-9 730
555
313
- 157
- 187
32
1 614
2 789
3 627
3 837
2 252
5 606
-1 755
- 870
1 811
4 393
3 802
3 053
1 175
-4 318
-10 724
-14 364
-15 337
7.7
7.1
7.4
7.8
7.7
7.7
7.8
7.2
7.2
7.3
7.4
7.8
7.2
7.2
7.3
7.2
7.3
7.4
7.3
7.7
8.2
8.1
0.08
0.04
-0.02
-0.02
0.00
0.16
0.26
0.31
0.31
0.17
0.40
Proportion of GSP (%) (e)
Own account revenue (b)
Expenses funded by own
account revenue (c)
Own account investment
(d)
(a)
(b)
(c)
(d)
(e)
Source:
In this table, Commonwealth payments have been removed from State revenue, expenses and net
acquisition of non-financial assets.
Revenue from State taxes, charges, royalties etc.
Total expenses less receipt of Commonwealth recurrent payments.
Investment in new assets, excluding Commonwealth capital grants.
GSP refers to Gross State Product.
1. ABS GFS (5512.0), 2009-10 and 2010-11.
2. Final consumption expenditure, ABS Australian National Accounts (5206.0), 2011-12.
6
Figure 2
Budget positions, all States, 2000-01 to 2010-11
GFS Net Operating Balance
'Own account' Net operating balance
Net Lending/Borrowing
10000
Dollars million
5000
0
-5000
-10000
-15000
-20000
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
Note:
Source:
We assumed Commonwealth recurrent grants are spent in the year of receipt. Own account net
operating balance is own source revenue less State spending funded by that revenue.
Commission analysis of ABS GFS.
REVENUE FROM ALL SOURCES
13
Figure 3 shows the sources of State revenue for all States in 2010-11. It shows State
own-source revenue and Commonwealth payments were 51.1% and 48.2%
respectively of total State revenue.4 Taxation revenue was the largest own-source
revenue, representing 29% of total State revenue.
14
Table 3 shows total State revenue by source for each State in 2010-11. It also shows
the proportion each revenue source represents of total State revenue. Table 3 shows:

State own-source revenue was the most important revenue source for New
South Wales, Victoria, Queensland, Western Australia, and the ACT5
(representing over 50% of their total State revenues).

4
5
The relative importance of State own-source revenues to State budgets
varied.
The remaining 0.7% was revenue from other sources, which includes grants and subsidies from sources
other than from the Commonwealth.
The own-source revenue for the ACT includes municipal rates.
7


Figure 3
It was more important for Western Australia and the ACT than the other
States. For Western Australia and the ACT, State own-source revenue was
60.5% and 59.3% respectively of total State revenue in 2010-11.
Commonwealth payments were the most important revenue source for South
Australia, Tasmania and the Northern Territory. The Northern Territory, in
particular, relied heavily on Commonwealth payments. They were 80% of its
total State revenue in 2010-11.
Revenue by source, all States, 2010-11
Other sources
0.7%
Taxation revenue
29.0%
Commonwealth
payments
48.2%
Sales of Goods and
Services
9.8%
Royalty income
4.3%
Other own-source rev.
6.1%
Notes:
(1)
(2)
Source:
Interest income
2.0%
Other own-source revenue includes: dividend income, fines, income from PNFCs, asset acquired
below fair value and other revenue n.e.c.
Revenue from other sources includes grants and subsidies from sources other than the
Commonwealth.
ABS GFS (5512.0), 2010-11.
8
Table 3
Total State revenue by source, 2010-11
NSW
Vic
Qld
WA
SA
Tas
ACT
NT
Total
Revenues ($m)
Own-source revenue
Taxation revenue
20 417
14 857
9 975
6 540
3 831
860
1 244
397
58 121
Sales of goods and services
4 838
5 944
4 172
1 754
1 879
362
449
205
19 603
Royalty income
1 240
58
2 722
4 206
157
49
0
155
8 586
Interest income
468
420
2 365
320
168
40
180
80
4 041
4 334
2 337
2 489
1 510
798
272
429
89
12 257
31 297
23 615
21 723
14 329
6 833
1 583
2 302
926
102 608
25 392
21 330
15 880
8 003
6 960
2 570
1 430
3 243
84 809
3 288
962
3 858
1 336
1 076
612
149
544
11 825
28 680
22 292
19 739
9 339
8 036
3 182
1 580
3 787
96 634
538
119
496
0
147
3
0
10
1 311
60 515
46 026
41 957
23 668
15 016
4 768
3 881
4 722
200 553
33.7
32.3
23.8
27.6
25.5
18.0
32.1
8.4
29.0
Sales of goods and services
8.0
12.9
9.9
7.4
12.5
7.6
11.6
4.3
9.8
Royalty income
2.0
0.1
6.5
17.8
1.0
1.0
0.0
3.3
4.3
Interest income
0.8
0.9
5.6
1.4
1.1
0.8
4.6
1.7
2.0
Other (a)
Total
Commonwealth payments
Current grants and subsidies
Capital grants
Total
Other sources (b)
Total
Proportions (%)
Own-source revenue
Taxation revenue
Other (a)
Total
7.2
5.1
5.9
6.4
5.3
5.7
11.0
1.9
6.1
51.7
51.3
51.8
60.5
45.5
33.2
59.3
19.6
51.2
42.0
46.3
37.8
33.8
46.4
53.9
36.8
68.7
42.3
5.4
2.1
9.2
5.6
7.2
12.8
3.8
11.5
5.9
47.4
48.4
47.0
39.5
53.5
66.7
40.7
80.2
48.2
0.9
0.3
1.2
0.0
1.0
0.1
0.0
0.2
0.7
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Commonwealth payments
Current grants and subsidies
Capital grants
Total
Other sources (b)
Total
(a)
(b)
Source:
15
Other own-source revenue includes: dividend income, fines, income from PNFCs, assets acquired
below fair value and other revenue n.e.c.
Revenue from other sources includes current grants and subsidies, and capital grants from sources
other than from the Commonwealth.
Commission analysis of ABS GFS (5512.0), 2010-11 and ABS unpublished data.
Figure 4 shows the relative importance of State own-source revenues and
Commonwealth payments to State budgets fluctuated between 2000-01 and
2010-11. However, own source revenues were about 50% of revenue over the entire
period, with GST about 30% and other Commonwealth payments about 20% until
2007-08. Since then, GST and other Commonwealth payments represented about
25% each.
9
Figure 4
Composition of State revenue, all States, 2000-01 to 2010-11
100
90
80
70
Per cent
60
50
40
30
20
10
0
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
Own source revenue
Source:
16
GST revenue
SPPs & NPPs
Other sources
Commission analysis of ABS GFS and State budgets.
Figure 5 shows Commonwealth payments contributed more to the growth in total
State revenue (49.9%) than State own-source revenue (48.8%).
Figure 5
Contribution to State revenue growth, all States, 2000-01 to 2010-11
Other sources
1.3%
SPPs & NPPs
29.0%
Own source
revenue
48.8%
GST revenue
20.9%
Source:
Commission analysis of ABS GFS and State budgets.
10
STATE OWN-SOURCE REVENUE
17
Taxation revenue. Taxation revenue accounted for around 56.6% of total State
own-source revenue in 2010-11 (Table 4).
18
Payroll taxation was the largest single State tax, representing an average of 17.6% of
State own-source revenue. It was relatively more important for New South Wales
(20.4% of total own-source revenue) than other States.
19
Stamp duty on conveyances was the second largest State tax, contributing 12% of
total State own-source revenue.
20
Other revenue. This group6 represented 35% of total State own-source revenue in
2010-11. Income from sales of goods and services was the largest item in the group
(19.1% for all States).
21
Revenue from sales of goods and services was particularly important for Victoria,
South Australia and Tasmania, representing 25.2%, 27.5% and 22.9% respectively of
their own-source revenues. These revenues came mainly from transport user charges
in Victoria and South Australia, and housing user charges in Tasmania.7
22
Mining revenue. The relative importance of mining revenue8 differed greatly across
States due to the very uneven distribution of mineral resources.
23
Mining revenue was 8.4% of total State own-source revenue in 2010-11. It
contributed 12.5%, 29.3% and 16.7% respectively to State own-source revenues in
Queensland, Western Australia and the Northern Territory. Its contribution to ownsource revenue in the other States was relatively small (Table 4).
6
This group includes revenue from: sales of goods and services, interest income, dividend income, fines,
income from PNFCs, assets acquired below fair value and other revenue n.e.c.
The high proportion of revenue from sales of goods and services in these States is due to the way they
organise service delivery. Transport services in South Australia are delivered by its general government
sector while these services are delivered by PNFCs or private operators in other States. Victoria’s
general government sector receives transport user charges (mainly charges on capital assets) from its
PNFC which collects the charges from private contractors. Tasmania’s housing services are delivered by
its general government sector.
In this analysis, mining revenue excludes royalties paid to States through Commonwealth payments.
7
8
11
Table 4
Composition of own-source revenue by State, 2010-11
NSW
%
Vic
%
Qld
%
WA
%
SA
%
Tas
%
ACT
%
NT
%
Total
%
20.4
18.4
13.9
18.3
13.9
18.1
12.4
17.7
17.6
Taxation revenue
Payroll Tax
Land Tax
7.3
6.7
4.8
4.1
8.4
4.7
4.8
0.0
6.1
12.9
16.6
8.9
8.0
11.5
9.1
11.8
11.1
12.0
Insurance Tax
4.4
3.9
2.5
3.3
5.4
3.1
2.6
3.5
3.7
Motor Tax
7.8
6.4
8.1
6.6
7.2
8.8
5.2
5.1
7.3
Gambling Tax
5.6
7.0
4.4
1.3
5.9
6.0
2.3
5.4
5.0
Stamp Duty on Conveyances
Other taxation (a)
Total
Mining Revenue
6.8
3.9
3.3
4.0
3.7
4.5
15.0
0.1
4.9
65.2
62.9
45.9
45.6
56.1
54.3
54.0
42.9
56.6
4.0
0.2
12.5
29.3
2.3
3.1
0.0
16.7
8.4
15.5
25.2
19.2
12.2
27.5
22.9
19.5
22.1
19.1
1.5
1.8
10.9
2.2
2.5
2.5
7.8
8.6
3.9
Other revenue
Sales of good and services
Interest income
Other own source rev. (b)
13.8
9.9
11.5
10.5
11.7
17.2
18.6
9.6
11.9
Total
30.8
36.8
41.6
25.0
41.6
42.6
46.0
40.4
35.0
Total own-source revenue
100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
(a)
Other taxation revenue for the ACT includes municipal rates.
(b)
Other own-source revenue in this table includes: dividend income, fines, income from PNFCs,
assets acquired below fair value and other revenue n.e.c.
Source: 1. ABS Taxation Revenue (5506.0), 2010-11.
2. Commission analysis of ABS GFS and unpublished data.
Changes in own-source revenue
24
Figure 6-a and Figure 6-b show the changes in the size and proportion of important
State own-source revenues from 2000-01 to 2010-11. They show:

payroll tax, stamp duty on conveyances, revenue from sales of goods and
services were the important own-source revenues over the period, though the
revenue share of stamp duty on conveyances has dropped since 2007-08

mining revenue became increasingly important to State own-source revenue,
especially since 2007-08.
12
Figure 6-a
Important own-source revenue, all States, 2000-01 to 2010-11
Payroll Tax
SD on Conveyances
Mining Revenue
Sales of GS
20
Dollars billion
15
10
5
0
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
Figure 6-b
Proportion of important own-source revenue, all States, 2000-01 to
2010-11
Payroll Tax
SD on Conveyances
Mining Revenue
Sales of GS
25
Per cent
20
15
10
5
0
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
Note:
Source:
‘SD on conveyances’ stands for ‘Stamp Duty on conveyances’. ‘Sales of GS’ stands for ‘Sales of
Goods and Services’.
1. ABS Taxation Revenue (5506.0), 2009-10 and 2010-11.
2. Commission analysis of ABS GFS and unpublished data.
13
25
Payroll tax. This tax averaged 17.7% of State own-source revenue over the years
2000-01 to 2010-11. Figure 7 shows payroll tax increased steadily in each State
throughout the period. However, the growth was uneven across States. For example,
payroll tax growth has flattened out in New South Wales since 2007-08. On the
contrary, this tax grew quickly in Western Australia since 2005-06 due to the State’s
strong economy.
Figure 7
Total value of payroll tax, 2000-01 to 2010-11
Vic
NSW
Qld
WA
ACT
NT
7000
6000
Dollars billion
5000
4000
3000
2000
1000
0
Tas
SA
Dollars billion
1000
800
600
400
200
0
2000-01
Source:
26
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
ABS Taxation Revenue (5506.0), 2009-10 and 2010-11.
Stamp duty on conveyances. This tax averaged 13.6% of State own-source revenue
over the period of 2000-01 to 2010-11. However, the revenue from this tax varied
dramatically from year to year, as illustrated in Figure 8.
14
Figure 8
Total value of stamp duty on conveyances, 2000-01 to 2010-11
4500
New South Wales
4000
Victoria
3500
Dollars million
3000
2500
Queensland
2000
Western Australia
1500
1000
South Australia
500
0
300
ACT
Dollars million
250
200
Tasmania
150
100
NT
50
0
2000-01
Source:
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
ABS Taxation Revenue (5506.0), 2009-10 and 2010-11.
27
Total revenue from stamp duty on conveyances has increased in all States since
2000-01, despite falls in 2008-09 in every State. The falls were particularly sharp in
Queensland and Western Australia and their revenues from this source have not
recovered. The drop in the total value of stamp duty on conveyances was largely due
to the impact of the Global Financial Crisis on Australia’s housing market.
28
Mining revenue. Figure 9 shows each State’s mining revenue and the changes in that
revenue between 2000-01 and 2010-11.
29
Mining revenue in Western Australia was 49% of total State mining revenue in
2010-11. Western Australia’s mining revenue has grown since 2000-01, and at faster
speed since 2005-06.
30
Mining revenue has also grown in the other States but at a slower pace than in
Western Australia. There were year to year fluctuations in mining revenue in States
other than Western Australia. Figure 9 shows mining revenue fell substantially in
Queensland and New South Wales in 2009-10, mainly because of a large drop in the
price of export coal.
15
Figure 9
Total value of mining revenue, 2000-01 to 2010-11
4500
4000
Western
Australia
3500
Dollars million
3000
Queensland
2500
2000
1500
New South Wales
1000
500
0
250
Northern
Territory
Dollars million
200
South Australia
150
100
Victoria
Tasmania
50
0
2000-01
Source:
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
Commission analysis of ABS unpublished data.
31
Sales of goods and services. Figure 10 shows revenue from sales of goods and
services increased substantially in most States over the period of analysis. It also
indicates this revenue was much less volatile than other major revenue items.
32
For most States, the increase in this revenue was mainly due to increased user
charges for housing and transport services.
33
The increase in the revenue from sales of goods and services was particularly large in
Victoria, where it more than doubled between 2000-01 and 2010-11.
16
Figure 10
Revenue from sales of goods and services, 2000-01 to 2010-11
7000
6000
Victoria
5000
Dollars million
New South Wales
4000
Queensland
3000
South Australia
2000
Western Australia
1000
0
500
ACT
Dollars million
400
Tasmania
300
200
NT
100
0
2000-01
Source:
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
ABS GFS (5512.0), 2009-10 and 2010-11.
Contribution to the growth of State own-source revenue
34
Between 2000-01 and 2010-11, total State own-source revenue increased by 89%.
Figure 11 shows the contribution of the main State revenue sources to that growth. It
and Table A-1 show that:

revenue from sales of goods and services was 17.9% of revenue over the
period, but it contributed 20.6% to the growth

mining revenue was 4.7% of revenue, but it contributed 14.2% to the growth

land tax was 5.2% of revenue, but it contributed 8.4% to the growth

payroll tax was 17.7% of revenue, and contributed 17.8% to the revenue growth

stamp duty on conveyances was 13.6% of total own-source revenue, and it
contributed 14.5% to the growth.
17
Figure 11
Contribution to own-source revenue growth, all States, 2000-01 to 2010-11
Other revenue
10.1%
Payroll Tax
17.8%
Sales of goods and services
20.6%
Land Tax
8.4%
Stamp Duty on Conveyances
14.5%
Mining Revenue
14.2%
Gambling Tax
3.3%
Note:
Source:
35
Motor Tax
7.1%
Insurance Tax
4.1%
Other revenue includes: other taxation revenue, interest income, fines, income from PNFCs, assets
acquired below fair value and other revenue n.e.c. For the ACT, it also includes municipal rates.
1. ABS GFS (5512.0), 2009-10 and 2010-11.
2. ABS Taxation Revenue (5506.0), 2009-10 and 2010-11.
3. Commission analysis of ABS unpublished data.
Because the driving forces of revenue growth differed over time, the contributions to
growth by the different sources also differed. Figure 12 shows the contributions to
growth by source for the periods of 2000-01 to 2005-06, and 2006-07 to 2010-11:

stamp duty on conveyances contributed 25.3% to growth between 2000-01 and
2005-06, but its contribution fell to -3.1% between 2006-07 and 2010-119

mining revenue provided 7.9% of growth between 2000-01 and 2005-06 and
26.3% between 2006-07 and 2010-11

payroll tax contributed 16.7% to growth between 2000-01 and 2005-06 and its
contribution rose to 19.7% between 2006-07 and 2010-11

revenue from sales of goods and services contributed 14.8% to growth between
2000-01 and 2005-06 and 29.1% between 2006-07 and 2010-11.
36
Figure 13 shows the contributions to own-source revenue growth in percentage
points.
9
The total value of stamp duty on conveyances for all States was $12 300 million in 2010-11, which was
below its 2006-07 value of $12 923 million.
18
Figure 12
Contribution to own-source revenue growth by time period, all States
2000-01 to 2005-06
Other revenue
2006-07 to 2010-11
Other revenue
12.1
Sales of goods and services
Sales of goods and services
14.8
Mining Revenue
Stamp Duty on Conveyances
Payroll Tax
15.0
20.0
9.3
Payroll Tax
16.7
10.0
-3.1
Land Tax
7.2
5.0
5.2
Stamp Duty on Conveyances
25.3
0.0
8.2
Insurance Tax
4.2
Land Tax
2.0
Motor Tax
7.3
Insurance Tax
26.3
Gambling Tax
4.6
Motor Tax
29.1
Mining Revenue
7.9
Gambling Tax
3.2
25.0
30.0
19.7
-10.0
Figure 13
10.0
20.0
30.0
40.0
Contribution to own-source revenue growth by time period (in percentage
points), all States
2000-01 to 2005-06
Other revenue
2006-07 to 2010-11
Other revenue
4.8
Sales of goods and services
Stamp Duty on Conveyances
Payroll Tax
6.0
8.0
3.3
Payroll Tax
6.6
4.0
-1.1
Land Tax
2.9
2.0
1.8
Stamp Duty on Conveyances
10.0
0.0
2.9
Insurance Tax
1.7
Land Tax
0.7
Motor Tax
2.9
Insurance Tax
9.3
Gambling Tax
1.8
Motor Tax
10.3
Mining Revenue
3.1
Gambling Tax
1.1
Sales of goods and services
5.9
Mining Revenue
10.0
12.0
Percentage point
Source:
0.0
Per cent
Per cent
7.0
-2.0
0.0
2.0
4.0
6.0
8.0
10.0
12.0
Percentage point
1. ABS GFS (5512.0), 2009-10 and 2010-11.
2. ABS Taxation Revenue (5506.0), 2009-10 and 2010-11.
3. Commission analysis of ABS unpublished data.
19
COMMONWEALTH PAYMENTS
37
Types and size of payments. Commonwealth payments were a large proportion of
State budgets. In 2010-11, they were 48% of State revenue, of which 88% was current
grants and subsidies and the other 12% was capital grants (refer to Table 3).
38
Commonwealth payments take two main forms:

transfers of general revenue funds (mostly GST revenue)

specific purpose payments (SPPs) and national partnership payments (NPPs).
39
Table 5 shows SPPs and NPPs were around 53% of Commonwealth payments in
2010-11, while the GST revenue was 47%.
40
Across States, GST revenue was more important to the Northern Territory than to
other States. It represented 65% of Commonwealth payments to the Territory.
Table 5
Commonwealth payments by type, 2010-11
NSW
Vic
Qld
WA
SA
Tas
ACT
NT
Total
Payments ($m)
GST revenue to States
14 158
10 736
8 494
3 236
4 337
1 688
853
2 385
45 887
SPPs + NPPs
14 746
10 511
14 279
6 009
3 610
1 453
742
1 280
52 630
To States
11 085
7 532
11 873
4 717
2 679
1 169
498
1 128
40 682
3 490
2 838
2 231
1 203
877
259
242
141
11 280
171
142
175
90
54
24
2
11
668
28 903
21 247
22 773
9 246
7 947
3 141
1 596
3 665
98 517
Ratio (%)
GST revenue to States
49.0
50.5
37.3
35.0
54.6
53.8
53.5
65.1
46.6
SPPs + NPPs
51.0
49.5
62.7
65.0
45.4
46.2
46.5
34.9
53.4
To States
38.4
35.4
52.1
51.0
33.7
37.2
31.2
30.8
41.3
Through States
12.1
13.4
9.8
13.0
11.0
8.3
15.2
3.8
11.4
0.6
0.7
0.8
1.0
0.7
0.8
0.1
0.3
0.7
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Through States
Direct to local government
Total
Direct to local government
Total
Note:
Source:
The total shown in this table is not the amount received by State budgets, so it does not equal the
GFS payments as listed in Table 3. It includes payments made direct to local government.
Commission analysis of Commonwealth and State budgets.
41
Table 6 provides information on tied Commonwealth payments10 by area of State
spending in 2010-11. It shows payments for education and health11 services were the
10
Those that are not general revenue type of payments.
20
largest categories of payments (31.4% and 28.3% of total Commonwealth payments
respectively). Payments for infrastructure and welfare and housing represented
14.6% and 13.3% respectively of total Commonwealth payments.
42
Table 6 shows the proportions of Commonwealth payments by areas of spending
varied across States. For example, 44.3% of the Northern Territory’s Commonwealth
payments were for welfare and housing but this proportion was much lower in other
States.
43
Table 6 also shows that Queensland, South Australia, Tasmania and the Northern
Territory received more than their population shares of Commonwealth payments
while the other States received less.
Table 6
Tied Commonwealth payments by area of State spending, 2010-11
NSW
Vic
Qld
WA
SA
Tas
ACT
NT
Total
%
%
%
%
%
%
%
%
%
Education
32.8
34.2
28.7
31.4
32.1
23.6
36.2
19.9
31.4
Health
30.0
31.4
25.6
28.3
28.6
21.1
25.1
16.0
28.3
Welfare and housing
12.5
12.0
12.1
13.7
12.9
10.4
12.5
44.3
13.3
Services to communities
0.1
0.1
0.1
0.3
0.8
0.2
0.0
0.2
0.2
Justice services
0.4
0.4
0.4
0.4
0.4
0.4
0.6
3.9
0.5
Roads
2.8
2.6
3.5
4.6
3.6
3.9
4.1
3.4
3.2
Transport services
0.0
2.6
0.0
1.3
4.1
1.0
0.0
0.0
1.1
Services to industry
1.3
0.8
0.4
0.5
1.2
1.2
0.3
0.3
0.8
Other expenses
3.4
4.4
17.1
3.3
3.2
2.5
8.1
2.4
6.6
16.7
11.5
12.1
16.2
13.0
35.6
13.1
9.7
14.6
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
29.4
21.6
23.1
9.4
8.1
3.2
1.6
3.7
100.0
Current grants (a)
Capital grants (all services)
Total
Amount received by State relative
to Australian total (b)
State population shares
32.3
24.9
20.2
10.3
7.4
2.3
1.6
1.0 100.0
Note:
Figures in this table show the payments received by each State (and all States in total) for each
service type as a proportion of the State’s total Commonwealth payments.
(a)
Excludes grants for general purposes.
(b)
The Commonwealth payments received by each State as a proportion of the total Commonwealth
payments (including general revenue). States which received more than their population shares of
Commonwealth payments are shaded.
Source: 1. ABS Australian Demographic Statistics (3101.0), 2011.
2. Commission analysis of Commonwealth and State budgets.
11
To simplify the comparison, we combine School and Post-secondary education into a single group—
Education services. We also combine Admitted patient, and Community and other health services into
a single group of Health care services. We continue to use these terms in the rest of this paper.
21
44
Changes in Commonwealth payments. As illustrated in Table 3 and Figure 3,
Commonwealth payments contributed slightly less than 50% of total State revenue.
45
However, there was a large increase in the amount of Commonwealth payments to
the States, and an increase in Commonwealth payments as a proportion of total State
revenue between 2006-07 and 2010-11. A large increase in Commonwealth payments
in 2009-10 saw the proportion rise to 51.3% of total State revenue.
46
The increase in Commonwealth payments was mainly caused by the large increases in
SPPs and NPPs provided to States in response to the Global Financial Crisis.
47
Table 7 shows capital grants have been an increasing proportion of Commonwealth
payments since 2008-09. The proportion of Commonwealth payments that were for
capital purposes reached a high of 15.5% in 2009-10.
Table 7
Commonwealth payments over time, 2000-01 to 2010-11
By payment type
By transaction type
GST revenue
SPPs+NPPs
%
%
Current grants
and subsidies
%
2000-01
52.1
47.9
94.5
5.5
2001-02
50.8
49.2
94.8
5.2
2002-03
56.7
43.3
95.3
4.7
2003-04
58.9
41.1
95.8
4.2
2004-05
58.1
41.9
95.6
4.4
2005-06
57.4
42.6
95.4
4.6
2006-07
58.4
41.6
94.6
5.4
2007-08
57.3
42.7
93.9
6.1
2008-09
49.6
50.4
91.6
8.4
2009-10
45.7
54.3
84.5
15.5
2010-11
46.9
53.1
87.8
12.2
93.1
6.9
Average
53.8
46.2
Source: 1. ABS GFS (5512.0), 2009-10 and 2010-11.
2. Commission analysis of Commonwealth and State budgets.
48
Capital grants
%
Contribution to the growth of Commonwealth payments. Between 2000-01 and
2010-11, Commonwealth payments increased by 109%. GST revenue, and SPPs and
NPPs contributed 42% and 58% respectively to the growth. However, their
contributions to growth were different for different time periods:

Between 2000-01 and 2005-06, GST revenue (representing 56% of total
Commonwealth payments) provided 71% of the growth. SPPs and NPPs were
44% of total Commonwealth payments and contributed 29% of the growth.
22

Between 2006-07 and 2010-11, GST revenue (representing 52% of total
Commonwealth payments) provided 21% of the growth. SPPs and NPPs, were
48% of total Commonwealth payments and contributed 79% of the growth.
OPERATING EXPENSES
49
Figure 14 shows the relative importance of State expenses. Health and education
were the most important State services. They were about 25% and 24% respectively
of total State expenses in 2010-11. The next most important areas were other
expenses12 (13% of State expenses) and welfare and housing (10% of State expenses).
50
The relative importance of State expenses by purpose showed similar patterns across
States (Table 8). However, compared with other States:
12
13

Western Australia and the Northern Territory spent relatively larger proportions
of their budgets on Services to communities and Justice services

New South Wales, Victoria and Queensland spent considerably larger
proportions of their budgets on Transport services

Queensland, Western Australia and the ACT spent smaller proportions of their
budgets on Welfare and housing

the ACT spent a larger proportion on other expenses13.
Other expenses include the remaining State general government services in addition to those listed in
Table 8. For example, services on State parliaments and treasuries, as well as debt charges, emergency
and natural disaster relief, recreation and culture and national park services.
Debt charges, the majority is in the form of nominal interest on unfunded superannuation, were a
large proportion (around 36%) of the ACT’s other expenses for 2010-11.
23
Figure 14
Expenses by purpose, all States, 2010-11
Depreciation
4.8%
Other Expenses
12.8%
Education
24.3%
Services to Industry
3.8%
Transport Services
4.8%
Roads
3.8%
Justice Services
7.8%
Services to communities
3.1%
Welfare and Housing
9.8%
Source:
Health
25.1%
Commission analysis of ABS unpublished data.
24
Table 8
Total State expense by purpose by State, 2010-11 (a)
NSW
Vic
Qld
WA
SA
Tas
ACT
NT
Total
Education (b)
14 721
Health (b)
14 672
11 910
9 358
5 481
3 695
1 247
11 315
10 792
5 419
4 439
1 264
799
957
48 168
997
1 005
49 903
Welfare and housing
6 060
4 750
3 779
1 804
1 634
505
275
561
19 368
Services to communities
1 209
1 385
873
1 680
610
50
108
319
6 234
Justice Services
4 862
3 149
2 878
2 326
1 130
361
251
457
15 414
Roads
2 559
1 595
Transport Services
2 942
2 891
1 895
949
167
145
69
155
7 533
2 470
669
416
19
75
44
9 525
Services to Industry
2 192
1 140
1 978
1 178
518
199
96
213
7 515
Other Expenses (c)
7 150
5 366
7 076
1 663
1 783
790
896
628
25 351
Depreciation
2 810
2 010
2 374
896
670
210
288
188
9 446
59 177
45 510
43 473
22 066
15 062
4 790
3 853
4 527
198 457
Education (b)
24.9
26.2
21.5
24.8
24.5
26.0
20.7
21.1
24.3
Health (b)
24.8
24.9
24.8
24.6
29.5
26.4
25.9
22.2
25.1
Welfare and housing
10.2
10.4
8.7
8.2
10.9
10.5
7.1
12.4
9.8
Services to communities
2.0
3.0
2.0
7.6
4.1
1.1
2.8
7.0
3.1
Justice Services
8.2
6.9
6.6
10.5
7.5
7.5
6.5
10.1
7.8
Roads
4.3
3.5
4.4
4.3
1.1
3.0
1.8
3.4
3.8
Transport Services
5.0
6.4
5.7
3.0
2.8
0.4
1.9
1.0
4.8
Services to Industry
3.7
2.5
4.6
5.3
3.4
4.2
2.5
4.7
3.8
Other Expenses (c)
12.1
11.8
16.3
7.5
11.8
16.5
23.3
13.9
12.8
Expenses ($m)
Total
Proportion to total expenses
(%)
Depreciation
4.7
4.4
5.5
4.1
4.5
4.4
7.5
4.1
4.8
Total
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
(a)
Gross State expenses, user charges were not netted off.
(b)
Education combines School education and Post-secondary education; Health combines Admitted
patient, and Community and other health services.
(c)
This group includes the remaining State general government services, such as State parliaments
and treasuries, as well as debt charges, emergency services and natural disaster relief, recreation
and culture and national park services.
Source: Commission analysis of ABS unpublished data.
51
The relative importance of State spending by purpose has been similar over time.
Figure 15 and Figure 16 show the proportions of expense by purpose for all States for
2000-01 to 2010-11.
52
Further information in Table A-2 shows education and health were the most
important services for all States. Both services together accounted for 48.8% of State
expenses. Victoria and South Australia were the States with the highest proportion of
expenses on education and health (51.4% and 51.3% respectively of State expenses),
25
while the Northern Territory had the lowest proportion of expenses on education and
health (39.7% of State expenses).
Figure 15
Proportion of expenses, by purpose, all States, 2000-01 to 2010-11
Education
Services to Communities
Transport services
Health
Justice services
Services to industry
Welfare and housing
Roads
30
Per cent
25
20
15
10
5
0
2000-01
Source:
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
Commission analysis of ABS unpublished data.
Figure 16
Proportion of expenses, State funded by purpose (net of Commonwealth
funded expenses), all States, 2000-01 to 2010-11
Education
Services to Communities
Transport services
Health
Justice services
Services to industry
Welfare and housing
Roads
30
Per cent
25
20
15
10
5
0
2000-01
Source:
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
Commission analysis of ABS unpublished data.
26
Changes in State expense patterns
53
Health service expenses as a proportion of total State expenses increased by 4
percentage points between 2000-01 and 2010-11.
54
States had different priorities over the period:

in New South Wales, the proportion of expenses on health, welfare and
housing, and transport services increased slightly

in Victoria, the proportion of expenses on health and transport services
increased substantially

in Western Australia, the proportion of expenses on health, welfare and
housing, justice services, and services to communities increased markedly

in Queensland, South Australia and the ACT, the proportion of expenses on
health services increased

in the Northern Territory, the proportion of expenses on education, health,
welfare and housing, and justice services increased substantially. By contrast,
the proportion of expenses on other services decreased.
Contribution to expense growth
55
56
Between 2000-01 and 2010-11, total State expenses increased by 98.4%. The main
contributors (Figure 17 and Table A-2) were:

health services, which were 23.9% of total State expenses over the period but
contributed 29.2% to the growth

education expenses, which were 24.9% of expenses and contributed 24% to the
growth

other expenses, which were 13.2% of expenses and contributed 13.9% to the
growth.
Expenses on other services contributed to growth in expenses in roughly the
proportion they represented of total expenses, except services to industry which was
4.8% of expenses, but contributed only 2% to the growth.
27
Figure 17
Contribution to expense growth, all States, 2000-01 to 2010-11
Other
13.9%
Education
24.0%
Services to industry
2.1%
Transport services
5.2%
Roads
2.9%
Justice services
8.1%
Services to Communities
3.7%
Welfare and housing
10.8%
Source:
57
58
Health
29.2%
1. ABS GFS (5512.0), 2009-10 and 2010-11.
2. Commission analysis of ABS unpublished data.
Figure 18 shows the contribution of each service to total expense growth changed in
the two periods of time. It shows:

education contributed 28.1% to the growth between 2000-01 and 2005-06 but
its contribution fell to 23.2% between 2006-07 and 2010-11

health services contributed 33.6% to the growth between 2000-01 and 2005-06
but its contribution to growth fell to 26.7% between 2006-07 and 2010-11

other expenses contributed 8.7% to the growth between 2000-01 and 2005-06
and its contribution to growth rose to 17.9% between 2006-07 and 2010-11.
Figure 19 shows the contributions to expense growth in percentage points.
28
Figure 18
Contribution to expense growth by time period, all States
2000-01 to 2005-06
Other
2006-07 to 2010-11
Other
8.7
Services to industry
Services to industry
2.3
Transport services
3.2
Roads
0.3
Justice services
7.6
Services to Communities
3.6
Welfare and housing
4.6
Justice services
9.2
Services to Communities
1.2
Transport services
5.5
Roads
17.9
3.5
Welfare and housing
8.6
12.0
33.6
Health
Health
Education
Education
28.1
0.0
5.0
10.0
15.0
20.0
25.0
30.0
26.7
35.0
23.2
0.0
5.0
10.0
Per cent
Source:
20.0
25.0
30.0
35.0
1. ABS GFS (5512.0), 2009-10 and 2010-11.
2. Commission analysis of ABS unpublished data.
Figure 19
Contribution to expense growth by time period (in percentage points), all
States
2000-01 to 2005-06
Other
2006-07 to 2010-11
Other
3.0
Services to industry
Justice services
Health
Education
8.0
10.0
12.6
Education
9.8
6.0
5.7
Health
11.7
4.0
1.6
Welfare and housing
3.0
2.0
3.6
Services to Communities
1.3
Welfare and housing
2.2
Justice services
3.2
0.0
1.5
Roads
0.1
Services to Communities
0.6
Transport services
1.9
Roads
8.4
Services to industry
0.8
Transport services
12.0
14.0
Percentage point
Source:
15.0
Per cent
10.9
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
Percentage point
1. ABS GFS (5512.0), 2009-10 and 2010-11.
2. Commission analysis of ABS unpublished data.
29
INVESTMENT
59
State investment14 has varied by purpose and across States over time. It has also
been volatile across States. For this reason, care must be taken in interpreting
patterns in the all-State average or in data for one year.
60
Figure 20 shows that, in 2010-11, 34.5% of total State investment was for education,
24.8% was for Roads, and 12.5% was for health services. However, investment on
different functions differed across States. For example, in 2010-11:

33.9% of investment by New South Wales was on education and 43.5% was on
roads

by contrast, 61.1% of Victoria’s investment was on education and only 12.9%
was on roads.
Figure 20
Investment by purpose, all States, 2010-11
Services to industry
3.5%
Other expenses
5.2%
Transport services
5.7%
Education
34.5%
Roads
24.8%
Justice services
3.9%
Services to communities
2.2%
Source:
Welfare and housing
7.7%
Health
12.5%
Commission analysis of ABS unpublished data.
61
Changes in investment. State investment patterns have changed substantially over
time. Table 9 gives some examples of these changes.
14
In this analysis, investment includes net acquisition of produced and non-produced assets, which
excludes assets funded from depreciation. Capital grants are included in State operating expenses, but
capital injections to PNFCs are excluded from both State operating expenses and State investment.
30

Between 2008-09 and 2009-10, there was a significant increase in the
proportion of investment on School education in most States (except the ACT
and the Northern Territory).15

Between 2008-09 and 2009-10, there was a sharp decline in the proportion of
investment on Roads in most States (except Tasmania).
Table 9
Proportion of State investment
NSW
Vic
Qld
WA
SA
Tas
ACT
NT
Total
%
%
%
%
%
%
%
%
%
2008-09
11.4
9.0
5.5
9.9
-2.4
39.3
72.5
-1.8
7.9
2009-10
60.3
29.4
17.9
37.3
33.9
59.6
54.6
-1.1
32.7
56.9
27.1
41.6
42.2
42.8
-47.9
44.3
59.7
42.8
21.6
22.6
27.3
15.0
13.0
26.3
School education
Roads
2008-09
2009-10
35.8
15.4
29.9
Source: Commission analysis of ABS unpublished data.
62
15
Figure 21 shows State investment exhibits a volatile pattern over time. It shows:

for most States, total investment was relatively steady between 2000-01 and
2006-07

for most States, total investment has increased since 2007-08 (corresponding to
the increases in NPPs paid through capital grants as discussed in the
Commonwealth payments section of this paper).
As part of the Commonwealth’s Economic Stimulus Plan, $16 billion has been invested in primary and
secondary school infrastructure through the Building the Education Revolution (BER) program since
2008-09. The increase in school education share of investment partly reflected the impact of BER on
State overall investment.
31
Figure 21
Investment by States, 2000-01 to 2010-11
7000
Queensland
6000
5000
Dollars million
New South Wales
4000
Victoria
3000
2000
Western Australia
1000
0
1600
South Australia
Dollars million
1200
800
NT
Tasmania
400
ACT
0
-400
2000-01
Source:
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
Commission analysis of ABS unpublished data.
63
Contribution to investment growth. Figure 22 shows the contributions to investment
growth by purpose between 2000-01 and 2010-11.
64
For all States together, education contributed around 41% of the total increase in
investment whereas Roads contributed around 21%.
32
Figure 22
Contribution to investment growth, all States, 2000-01 to 2010-11
Services to industry
3.0%
Transport services
3.9%
Other expenses
4.7%
Education
40.6%
Roads
21.4%
Justice services
2.1%
Services to communities
3.9%
Welfare and housing
8.2%
Source:
Health
12.2%
Commission analysis of ABS unpublished data.
33
ATTACHMENT A
ADDITIONAL TABLES
Table A-1
Annual average proportion of State own-source revenue by State, 2000-01
to 2010-11
NSW
Vic
Qld
WA
SA
Tas
ACT
NT
Total
%
%
%
%
%
%
%
%
%
21.4
18.4
12.9
17.2
14.3
15.5
13.1
18.2
17.7
6.8
5.4
3.3
4.8
5.6
3.7
3.8
0.0
5.2
14.4
14.8
11.8
14.9
10.9
9.4
11.7
11.8
13.6
Insurance Tax
4.3
3.9
2.6
3.9
5.3
2.9
2.6
3.4
3.8
Motor Tax
7.9
6.8
7.7
8.4
7.3
8.7
5.8
6.1
7.5
Gambling Tax
6.1
8.3
5.2
1.7
7.0
6.1
3.1
7.8
6.0
Other taxation (a)
6.9
5.2
5.3
4.0
5.1
5.9
12.9
2.1
5.8
67.8
62.8
48.8
54.9
55.4
52.1
53.1
49.4
59.6
2.2
0.2
8.9
15.5
2.2
1.8
0.0
11.4
4.7
14.4
22.0
18.1
13.9
25.0
22.9
20.2
19.3
17.9
2.6
2.1
9.9
2.2
3.0
3.0
7.4
6.0
4.2
Other own source rev. (b)
12.9
12.8
14.3
13.5
14.4
20.1
19.3
13.8
13.5
Total
29.9
36.9
42.3
29.6
42.4
46.1
46.9
39.2
35.7
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Taxation revenue
Payroll Tax
Land Tax
Stamp Duty on Conveyances
Total
Mining Revenue
Other revenue
Sales of good and services
Interest income
Total own-source revenue
(a)
(b)
Source:
Other taxation revenue for the ACT comprises of municipal rates.
Other own-source revenue in this table includes: dividend income, fines, income from PNFCs,
assets acquired below fair value and other revenue n.e.c.
1. ABS Taxation Revenue (5506.0), 2009-10 and 2010-11.
2. Commission analysis of ABS GFS and unpublished data.
34
Table A-2
Annual average proportion of State expenses by purpose, by State, 2000-01
to 2010-11 (a)
NSW
Vic
Qld
WA
SA
Tas
ACT
NT
Total
%
%
%
%
%
%
%
%
%
Education (b)
25.4
26.1
23.5
25.6
24.9
25.4
20.5
20.1
24.9
Health (b)
24.2
25.3
21.8
23.5
26.4
23.0
21.7
19.6
23.9
Welfare and housing
9.9
10.3
7.5
7.4
10.2
10.5
7.8
7.5
9.2
Services to communities
1.8
2.7
2.4
6.1
4.2
0.9
2.9
6.2
2.9
Justice services
8.1
7.1
7.1
9.3
8.2
7.1
6.5
9.4
7.8
Roads
4.4
4.0
3.8
4.6
1.9
3.4
1.3
2.9
3.9
Transport services
5.4
5.4
5.2
3.4
2.5
0.4
2.1
0.7
4.6
Services to industry
4.1
2.7
7.8
5.9
4.7
6.3
1.8
6.5
4.8
Other expenses (c)
11.9
12.4
14.8
9.9
12.8
18.1
29.1
22.1
13.2
4.8
4.0
6.2
4.5
4.3
4.9
6.2
5.0
4.9
Depreciation
Total
(a)
(b)
(c)
Source:
100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Gross State expenses, user charges were not net off.
Education combines School education and Post-secondary education; Health combines Admitted
patient, Community and other health services.
This group includes the remaining State general government services, such as those on State
parliaments and treasuries, as well as emergency services and natural disaster relief, recreation
and culture and national park services.
Commission analysis of ABS unpublished data.
Attachment A
35