05 Nov 08 Taxation receipts to fall - surplus revised downwardsIn a media release issued on 5 November 2008, the Treasurer, Wayne Swan, announced the release of the Mid-Year Economic and Fiscal Outlook 2008-09 (MYEFO). As a consequence of the global financial crisis, tax receipts are expected to be around $40 billion lower over the forward estimates than anticipated at the time of the May Budget.
Expected taxation receipts have been revised down by $4.9 billion in 2008-09, $12.2 billion in 2009-10, $12.4 billion in 2010-11 and $7.9 billion in 2011-12.
An underlying cash surplus of $5.4 billion is forecast for 2008-09 (0.4% of GDP). In accrual terms, the fiscal balance is expected to record a $5.8 billion surplus in 2008-09 (0.5% of GDP).
The Treasurer said that these downward revisions to revenue are particularly the result of lower forecasts of capital gains tax due to the recent dramatic falls in global equity markets. These revisions also reflect the substantial negative impacts on company profits of the credit market turmoil, weaker global growth, and from 2009-10, falling terms of trade.
For a copy of the Treasurer's media release, No 2008/121, 5 November 2008, go here.
For a copy of the MYEFO, go here.