Degree to which downturn is hurting tax receipts revealed
The degree to which the downturn in markets and its impact on superannuation funds is cutting a hole in Commonwealth revenues has been revealed in new, if somewhat dated, data released by the Australian Taxation Office (ATO).
The data, contained in the ATO’s taxation statistics for 2006-07, revealed a substantial upswing in funds under management in 2006-07 and a commensurate surge in tax receipts from superannuation on the part of the Government.
The data revealed that funds under management grew by 37.5 per cent in 2006-07 and that superannuation funds were liable for $10.5 billion in net tax — an increase of 56.7 per cent over the previous year.
The data has also revealed the degree to which growing unemployment in Australia is likely to impact on superannuation funds and, through that, tax receipts.
Looking at 2006-07, the data said the main income source for funds was contributions from employers (the superannuation guarantee), which grew by 22.1 per cent and accounted for 39.2 per cent of total income.
However, one of the most significant figures in the ATO data is the manner in which the implementation of the superannuation co-contribution regime impacts revenues, with employee contributions actually growing by 106.8 per cent.
AUTHOR
Mike Taylor
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