Australia Ends Year on High Note

October 3, 2011 Taxation in Australia

Tax revenues in AustraliaSYDNEY – Australia has reported positive results for its budgetary outcome for the year, despite revenues still being marginally below target.

The government of Australia remains set on achieving a budget surplus in the 2011 – 2012 fiscal year, despite seeing smaller than expected revenues in the 2010 – 2011 year and increasing financial instability around the world.

Late last week the Australian government released its final budgetary outcomes for the 2010 – 2011 fiscal year. According to the report, the Australian government saw a cash deficit of AUD 47.7 billion, or 3.4 percent of the GDP, for the 2010 – 2011 period. In a joint media release, made by the Treasurer of Australia Wayne Swan and the Minister of Finance and Deregulation Penny Wong, it was revealed that the cash deficit level compares well with other developed economies around the world.

At the end of the fiscal year the net debt of the Australian government stood at AUD 84.6 billion, or 6.1 percent of the national GDP. According to the Minister and the Treasurer, Australia’s debt levels are far below the average 75.3 percent debt level seen in other developed countries in 2010.

The government’s total tax receipts for the period were AUD 280.8 billion, which were 0.6 percent below forecasts made in May. The drop was contributed primarily to a 1.5 percent fall in corporate tax receipts.

The lowered tax revenues were compensated for with a AUD 3.6 billion drop in government spending. The Treasurer said that Australia’s budgetary position is currently one of the strongest in the world, due primarily to the government’s willingness to adhere to strict fiscal plans and disciplines.

The government will continue with its path of ongoing spending restraint and sound fiscal strategy, and will maintain its aim of reaching a budgetary surplus in the 2011 – 2012 fiscal year.

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