The Australian Taxation Office has reported a $20 billion fall in revenue collections for the 2008-09 financial year due to the global recession, the Assistant Treasurer, Senator Nick Sherry, has announced today.
The ATO's Annual Report shows total cash receipts collected were $264.5 billion during 2008-09 – seven per cent below the 2008 Budget forecast.
"The figures contained in the Tax Office Annual Report show how hard the global recession has hit revenues. This is the biggest fall in tax revenue since 1930-31." the Assistant Treasurer said.
The ATO Annual Report states that company tax collections came in 15.8 per cent below Budget forecasts and responsible for half the Budget forecast shortfall. GST collections were 9.1 per cent below Budget forecasts.
The main revenue collections for 2008-09 were:
- $116 billion PAYG from individual taxpayers
- $60.4 billion in company tax
- $41.2 billion from the GST
- $24.4 billion in excise
The ATO report highlights the role of the global financial crisis in the reduced collection levels in stating that:
"lower than originally forecasted collections were driven primarily by the sharp downturn in economic conditions over the year, rather than a reduction in the level of compliance."
"In direct response to the global financial recession, the Tax Office also delivered a small business assistance program which provided practical assistance to more than 101,000 small businesses", the Assistant Treasurer said. This assistance provided help to ensure viable businesses survive the economic downturn.
The Tax Office also implemented a number of important aspects of the Government's economic stimulus plan. The Tax Office, in what was their single largest payment distribution, delivered 8.43 million tax bonus payments with a total value of $7.4 billion.
The Rudd Government has a zero tolerance approach to tax evasion, and through the Offshore Voluntary Disclosure Initiative and Project Wickenby, the Tax Office has been delivering real results for the Australian community. The Annual Report highlights that there were 558 audits and reviews completed as part of Project Wickenby in 2008-09.
In 2009 the Tax Office has also worked closely with the Victorian Bushfire Appeal Fund (VBAF) and the Victorian Government since the fund was established following the February 2009 fires across Victoria. The Tax Office has provided a range of assistance to the VBAF including working with Government to develop special arrangements for use of VBAF funds.
The full Tax Office Annual Report is available at www.ato.gov.au.