LG share of total tax revenue in 2020-21 down to 3.4pc

Local government taxation revenue accounted for about 3.38 percent of the $593.2 billion in total revenues collected by all governments in 2020-21.

In statistics released last week, the Australian Bureau of Statistics said local government raised $20.06 billion in taxes in 2020-21. This was an increase of 2.6 percent on the $19.55 billion collected in the 2019-20 financial year. Local government’s share of total tax revenues in 2019-20 was 3.54 percent.

The combined 2020-21 government tax-take of $593 billion was up 7.5 percent on the previous financial year when $551.6 billion was collected in taxes.

The ABS said the latest government financial statistics were impacted by significant fiscal responses to the COVID-19 pandemic, including increased healthcare spending and assistance to households, businesses, and not-for-profits.

Taxes collected by the states rose 8.7 percent on average, with Queensland’s tax revenue rising 14.7 percent to $16.19 billion. The NSW state government tax take increased by 10.8 percent to $34.13 billion.

The $593 billion collected across all levels of government represented 28.7 percent of gross domestic product (GDP).

This ratio has not fallen below 27 percent for nearly a decade, with 27 percent being the figure during the 2012-13 financial year.