State and Federal Taxes on Tourism in Australia · State and Federal Taxes on Tourism in Australia...
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Sustainable Tourism Cooperative Research CentreCentre for Tourism Economics and Policy Research
State and Federal Taxes on Tourism in Australiaestimates for 2003/04
Peter Forsyth, Daniel Pambudi, Ray Spurr, Larry Dwyer, Thiep Van Ho and Serajul Hoque
Estimates for 2003/04
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Disclaimer While all reasonable efforts have been made to gather the most current and appropriate information, the Sustainable Tourism Cooperative Research Centre (STCRC) does not give any warranty as to the correctness, completeness or suitability of the information, and shall in no event be liable for any loss or damage that might be suffered as a result of reliance on this information. Please direct all enquiries to the STCRC – contact details are on the back cover. National Library of Australia Cataloguing-in-Publication Title: State and Federal taxes on tourism in Australia : estimates for 2003/04 /
authors, Peter Forsyth ... [et al.]. Publisher: Sustainable Tourism CRC, 2007. ISBN: 9781920965587 (pbk.) Notes: Bibliography. Subjects: Tourism--Taxation--Australia. Revenue sharing--Australia--Statistics. State
governments--Australia--Finance. Federal government--Australia. Other Authors/Contributors: Pambudi, Daniel. Spurr, Ray. Dwyer, Larry. Van Ho, Thiep. Hoque, Serajul. Dewey Number: 336.27833847094 Copyright © CRC for Sustainable Tourism Pty Ltd 2007 All rights reserved. Apart from fair dealing for the purposes of study, research, criticism or review as permitted under the Copyright Act, no part of this book may be reproduced by any process without written permission from the STCRC. Acknowledgements This document results from a research project undertaken by the STCRC, in conjunction with each Australian state and territory tourism authority.
Qantas Airways Limited is a major supporter of the STCRC’s Centre for Tourism Economics and Policy Research, through its sponsorship of the Qantas Chair in Travel and Tourism Economics at the University of New South Wales.
The STCRC was established and is supported under the Australian Government’s Cooperative Research Centre’s Program. First published in Australia in 2007 by CRC for Sustainable Tourism Pty Ltd. Printed in Australia (Gold Coast, Queensland). Cover designed by Sin Design.
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ABOUT THE AUTHORS The following members of the STCRC Centre for Tourism Economics and Policy Research (CTEPR) contributed to this research:
Peter Forsyth Professor of Economics and Deputy Director, Tourism Research Unit, Monash University
Daniel Pambudi Research Fellow, CTEPR, Monash University Ray Spurr Director of CTEPR, Senior Research Fellow STCRC, School of Marketing,
University of New South Wales Larry Dwyer Qantas Professor of Travel and Tourism Economics, University of New
South Wales Thiep Van Ho Senior Economic Modeller, CTEPR, University of New South Wales Serajul Hoque Research Fellow, CTEPR, Monash University
Estimates for 2003/04
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CONTENTS
ABOUT THE AUTHORS _________________________________________________________________III
SUMMARY_____________________________________________________________________________ VI
CHAPTER 1 INTRODUCTION AND METHOD ______________________________________________ 1 ESTIMATION OF TOURISM TAXES ___________________________________________________________ 1 STATE-BASED ESTIMATES OF TAXES ON TOURISM ______________________________________________ 2
CHAPTER 2 PRODUCTION TAXES ON TOURISM __________________________________________ 5
CHAPTER 3 COMMODITY TAXES ON TOURISM _________________________________________ 10
CHAPTER 4 TOTAL TOURISM TAXES LEVIED AND RECEIVED BY STATES/TERRITORIES _ 13
APPENDIX A: CONCEPTS, SOURCES AND METHODS USED IN DEVELOPING TAXES ON TOURISM FOR THE AUSTRALIAN STATES AND TERRITORIES ____________________________ 27 APPENDIX B: DEFINITIONS OF SELECTED TERMS USED IN THIS REPORT*________________ 35
REFERENCES __________________________________________________________________________ 36
LIST OF ABBREVIATIONS ______________________________________________________________ 37
STATE AND FEDERAL TAXES ON TOURISM IN AUSTRALIA
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LIST OF TABLES
Table 1: Tourism Production Taxes, By Type of Tax, 2003/04, $M ___________________________________ 5 Table 2: Tourism Production Taxes, By Type of Industry, 2003/04, $M________________________________ 5 Table 3: State Tourism Property Taxes, By Type of Industry, 2003/04, $M _____________________________ 6 Table 4: Federal Tourism Fringe Benefits Taxes (FBT), By Type of Industry, 2003/04, $M ________________ 7 Table 5: State Tourism Payroll Taxes, By Type of Industry, 2003/04, $M ______________________________ 8 Table 6: Federal Tourism Other Production Taxes, By Type of Industry, 2003/04, $M ____________________ 9 Table 7: Tourism GST and Other Commodity Taxes Federal, Levied By State or Territory, 2003/04, $M ___ 10 Table 8: GST Revenues Generated by Tourism, By State or Territory, 2003/04, $M _____________________ 10 Table 9: Tourism GST, Revenues Distributed to States or Territories, 2003/04, $M______________________ 11 Table 10: Tourism Other Commodity Taxes (Including Subsidies), By State or Territory, 2003/04, $M ______ 11 Table 11: Tourism Fuel, Alcohol, Gambling, and Other Taxes And Subsidy, By State or Territory, 2003/04, $M_____________________________________________________________________________________ 12 Table 12: Tourism Taxes Levied and Received in NSW 2003/04 ____________________________________ 13 Table 13: Tourism Taxes Levied and Received in VIC, 2003/04_____________________________________ 14 Table 14: Tourism Taxes Levied and Received in QLD, 2003/04 ____________________________________ 15 Table 15: Tourism Taxes Levied and Received in SA, 2003/04 _____________________________________ 16 Table 16: Tourism Taxes Levied and Received in WA, 2003/04_____________________________________ 17 Table 17: Tourism Taxes Levied and Received in TAS, 2003/04 ____________________________________ 18 Table 18: Tourism Taxes Levied and Received in NT, 2003/04 _____________________________________ 19 Table 19: Tourism Taxes Levied and Received in ACT, 2003/04 ____________________________________ 20 Table 20: Tourism Taxes Levied and Received in Australia, 2003/04_________________________________ 21 Table 21: Direct Tax Receipts Impact of $100m Change in Tourism Expenditure in NSW ________________ 22 Table 22: Direct Tax Receipts Impact of $100m Change in Tourism Expenditure in VIC _________________ 22 Table 23: Direct Tax Receipts Impact of $100m Change in Tourism Expenditure in QLD_________________ 23 Table 24: Direct Tax Receipts Impact of $100m Change in Tourism Expenditure in SA __________________ 23 Table 25: Direct Tax Receipts Impact of $100m Change in Tourism Expenditure in WA _________________ 24 Table 26: Direct Tax Receipts Impact of $100m Change in Tourism Expenditure in TAS _________________ 24 Table 27: Direct Tax Receipts Impact of $100m Change in Tourism Expenditure in NT __________________ 25 Table 28: Direct Tax Receipts Impact of $100m Change in Tourism Expenditure in ACT_________________ 25 Table 29: Direct Tax Receipts Impact of $100m Change in Tourism Expenditure in Australia _____________ 26
Estimates for 2003/04
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SUMMARY
Total net tourism taxation in Australia was $6922 million in 2003/04: • This equates to 19.6% of total tourism gross domestic product (TGDP), or • 9.1% of total tourism expenditure or consumption.
The revenues from these taxes can be divided into three categories: State taxes of $634.2 million (9.2%), Federal taxes of $1797.4 million (26.0%), and GST at $4490.4 million (64.9%).
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Tourism taxes include taxes on products (for example, GST, fuel taxes, alcohol taxes and gambling taxes) and taxes on production (for example, property taxes, payroll taxes and FBT):
• Taxes on tourism products are recorded in the ABS (national) Tourism Satellite Account (TSA)1 and STCRC’s State and Territory TSAs reports2.
• Subsidies on products (primarily in the form of government funding for urban transport) have been subtracted from this figure to provide net taxes on products.
• Taxes on production are currently incorporated within the overall estimates of tourism gross value added (TGVA) and are thus not separately identified in TSA estimates.
Tourism taxation can be further broken down into:
• State taxes on production ($869.7 million) • State taxes on products ($662.5 million) • State subsidies on products ($-898.0 million) • Federal taxes on production ($156.3 million) • Federal taxes on products ($1741.1 million) • Federal subsidies on products ($-100.0 million) • GST ($4490.4 million).
For every $100 of tourism expenditure in Australia, $9.1 is paid to federal, state or local governments in tax revenues net of any subsidies provided.
1 Australian Bureau of Statistics 2007 2 STCRC 2007
Estimates for 2003/04
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Each $9.1 of net tax revenues is made up as follows: • State taxes on production ($1.1); • State taxes on products ($0.9); • State subsidies on products ($-1.2); • Federal taxes on production ($0.2); • Federal taxes on products ($2.3); • Federal subsidies on products ($-0.1); and • GST ($5.9) (see Table 20).
GST, while collected by the Commonwealth Government, is subsequently redistributed back to the states and territories. The allocation of GST redistribution is based on a formula recommended by the Commonwealth Grants Commission3 and is not directly related to individual shares of GST from tourism goods and services raised in the state or territory concerned (see Table A.8, Appendix A). The following tables summarise the breakdown of tourism taxes by state or territory. Detailed breakdowns by state and territory are provided in Chapter 4 of this report.
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Tourism Taxes Levied and Received by State or Territory, 2003/04, $m
Tourism Associated Statistics NSW VIC QLD SA WA TAS NT ACT Australia Tourism GSP/GDP 12240.9 7278.6 8111.7 2237.5 3170.1 949.8 740.6 532.7 35262.0
Tourism output 23479.3 13485.1 15193.3 3901.3 5640.1 1654.5 1382.5 906.9 65643.0
Tourism GVA 10352.1 6117.9 6633.5 1841.6 2586.3 783.6 615.7 435.3 29365.0
Tourism consumption 24201.3 15421.1 19170.7 4592.9 7154.4 2181.7 1786.8 1284.1 75798.0
Taxes Levied on Tourism NSW VIC QLD SA WA TAS NT ACT Australia
State taxes
State taxes on production 341.6 165.5 204.2 46.4 71.8 17.7 9.7 12.8 869.7
State taxes on products 210.0 133.6 182.3 36.1 56.4 19.6 14.5 10.0 662.5
State subsidies -478.5 -164.6 -135.1 -31.9 -46.4 -8.6 -23.9 -9.0 -898.0
Total 73.2 134.6 251.4 50.6 81.8 28.8 0.2 13.8 634.2
Federal taxes
Federal taxes on production
59.5 30.5 34.2 8.5 13.3 3.7 3.9 2.5 156.3
Federal taxes on products 572.1 338.9 389.3 134.1 192.2 46.9 36.8 30.8 1741.1
Federal subsidies -53.4 -15.8 -16.2 -3.4 -5.6 -1.2 -3.3 -1.2 -100.0
Total 578.2 353.6 407.2 139.2 199.9 49.5 37.5 32.2 1797.4
GST on Tourism 1424.1 896.2 1155.2 276.7 430.6 124.9 106.8 75.9 4490.4
Total taxes levied on tourism
2075.5 1384.4 1813.8 466.5 712.3 203.2 144.5 121.8 6922.0
Taxes Received on Tourism
NSW VIC QLD SA WA TAS NT ACT Australia
State taxes
State taxes on production 341.6 165.5 204.2 46.4 71.8 17.7 9.7 12.8 869.7
State taxes on products 210.0 133.6 182.3 36.1 56.4 19.6 14.5 10.0 662.5
State subsidies -478.5 -164.6 -135.1 -31.9 -46.4 -8.6 -23.9 -9.0 -898.0
Total 73.2 134.6 251.4 50.6 81.8 28.8 0.2 13.8 634.2
Federal taxes
Federal taxes on production
0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Federal taxes on products 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Federal subsidies -53.4 -15.8 -16.2 -3.4 -5.6 -1.2 -3.3 -1.2 -100.0
Total -53.4 -15.8 -16.2 -3.4 -5.6 -1.2 -3.3 -1.2 -100.0
GST on Tourism 1305.4 942.0 883.7 426.2 426.2 188.4 228.8 89.7 4490.4
Total tax receipts on tourism
1325.2 1060.8 1118.8 473.4 502.3 216.0 225.7 102.3 5024.6
Estimates for 2003/04
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Direct Tax Receipts Impact of $100m Change in Tourism Expenditure by State or Territory, 2003/04
NSW VIC QLD SA WA TAS NT ACT Australia Change in tourism consumption, $m
100 100 100 100 100 100 100 100 100
State government receipts, $m
Change in state taxes 2.3 1.9 2.0 1.8 1.8 1.7 1.4 1.8 2.0
Change in state share of GST 1.7 1.2 1.2 0.6 0.6 0.2 0.3 0.1 5.9
Change in state subsidies -2.0 -1.1 -0.7 -0.7 -0.6 -0.4 -1.3 -0.7 -1.2
Total 2.0 2.1 2.5 1.7 1.7 1.6 0.3 1.2 6.8
Federal government receipts, $m
Change in federal taxes 2.6 2.4 2.2 3.1 2.9 2.3 2.3 2.6 2.5
Change in federal subsidies -0.2 -0.1 -0.1 -0.1 -0.1 -0.1 -0.2 -0.1 -0.1
Total 2.4 2.3 2.1 3.0 2.8 2.3 2.1 2.5 2.4
Other state receipts, $m
Change in receipts to states and territories from distribution of GST revenues
4.2 4.6 4.8 5.5 5.4 5.5 5.7 5.8 0.0
Total increase in tourism taxation, $m
8.6 9.0 9.5 10.2 10.0 9.3 8.1 9.5 9.1
STATE AND FEDERAL TAXES ON TOURISM IN AUSTRALIA
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Chapter 1
INTRODUCTION AND METHOD This report on the contribution of tourism taxes to the economies of the Australian states/territories has been prepared by the Centre for Tourism Economics and Policy Research, a research unit of the Sustainable Tourism Cooperative Research Centre (STCRC). The report covers each of the Australian states and territories.
Estimation of Tourism Taxes
Estimates of taxes presented in this report are consistent with the tax data presented in the national Australian Tourism Satellite Account (ATSA) as produced by the Australian Bureau of Statistics (ABS 2007). ATSA includes data on two types of taxes – taxes on production, which are included in Tourism Gross Value Added (TGVA) and taxes on products, which form the difference between TGVA and Tourism Gross Domestic Product (TGDP).
Taxes on production include state and federal taxes. The two main forms of state taxes are taxes on property and payroll taxes. Federal taxes include Fringe Benefits Tax (FBT) and other taxes. The share of these taxes in total tourism taxes on production is estimated from data on these specific taxes. Tourism’s share of each of these taxes was assumed to be proportional to tourism’s share in gross output. Specific taxes on products such as those on gambling, fuel and alcoholic beverages are estimated from ABS data on these taxes and the tourism share of these taxes is assumed to be proportional to tourism’s share of total output. The ATSA embodies estimates of subsidies to local and long distance passenger transport. Estimates of these were obtained from the ABS. The difference between the sum of these taxes and subsidies and total taxes on products was assumed to be Goods and Services Taxes (GST). GST on tourism has thus been estimated as a residual. The ATSA embodies subsidies of $998m, allocated between local and long distance passenger transport. The former includes tourism’s share of subsidies to urban passenger transport. We have been unable to determine the exact nature of the subsidies to long distance passenger transport. Given that air transport does not receive many subsidies (some state government incentives for airlines to base themselves at their airports, some subsidies for services to remote towns), we assume that most of these subsidies relate to ground transport including long distance passenger rail and coaches. Passenger trains and feeder buses do receive some subsidies. Nevertheless, the size of the estimated subsidy is much larger than expected. In its study of assistance to tourism the Productivity Commission estimated that the transport subsidy was of the order of $462m4. A narrow definition of tourism was adopted by the Productivity Commission in making this estimate. If the estimate is scaled up for the broader TSA based definition of tourism, we calculate a subsidy estimate of $629m. This is still $369m less than the ABS estimate embodied in ATSA. The higher ABS subsidy estimate has been used in this report to ensure consistency with the ATSA and STCRC TSA reports. The subsidy was then allocated between state and federal governments on the basis of $100m to the federal government and the remainder to state governments. The estimated federal subsidy was adapted from Productivity Commission exploratory estimates of assistance to tourism in passenger transport services and infrastructure for the years 2000 to 2002 suggesting that from 6% to 7% of total tourism subsidies came from the federal government5. 4 Productivity Commission 2005 5 Productivity Commission 2005
Estimates for 2003/04
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State-Based Estimates of Taxes on Tourism
In this report we set out estimates of taxes on tourism on a state-by-state basis. There is very limited information about tourism taxation at a state level. Indeed, information on Australia-wide taxation of tourism is very limited. ATSA provides details for only two types of taxes – taxes on production, which form part of Tourism GVA, and taxes on products, which constitute the difference between Tourism GVA and Tourism GDP. These tax estimates are the net outcome of a range of taxes on tourism, as well as subsidies granted to tourism.
To obtain estimates of state taxes, it is necessary to:
• break up the tax estimates into more categories of taxes, so that state and federal taxes can be identified; and
• derive estimates of the amounts of each type of tax at the level of each state or territory. In this report, we have allocated the total amount of each category of state taxes to each state or territory. This is done on the basis of each tax having the same proportion of state tourism output. This means that they are top-down rather than bottom-up estimates. A bottom-up approach would require much more data than are currently available and would be a major research exercise. Thus, differences in some state tax rates, e.g. on gambling, will not be picked up here. Nevertheless, we believe that these tables provide a useful and generally reliable overall picture. Several of the tables provide industry-by-industry estimates of each type of tax on a state-by-state basis. However, it is the summary tables that are probably of the most interest. Tables 12 to 19 provide estimates of how much tax is raised on tourism in each of the states and of how much revenue each state receives from taxes levied on tourism. These sums are different because of the workings of the GST system. By far the largest tax on tourism is GST. This is not strictly a ‘state’ or ‘federal’ tax, since revenues from it are collected federally and then allocated to the states on a different basis from that on which it is collected. Thus the GST on tourism in Tasmania was $124.9m but the amount that Tasmania received from GST levied on tourism nationally was $188.4m. Tables 21 to 28 provide estimates of how increases in expenditure on tourism in a state impact directly on tax receipts in that state. Thus, for example, if an extra $100m is spent on tourism in Tasmania, this will lead to an additional direct impact of $9.3m in taxes. Of this, the Commonwealth government receives $2.3m and the Tasmanian state government gains an extra $1.6m in revenue, with the remaining $5.7m being GST. Because GST revenue is allocated between the states according to the Commonwealth Grants Commission Horizontal Fiscal Equalisation formula, rather than according to where the additional GST has been raised, Tasmania receives only $0.2m of the additional GST revenue and $5.5m is allocated across the remaining states and territories6 (see Table A.8, Appendix A). These estimates incorporate only direct impacts – the full impacts could be somewhat different as a result of flow-on effects across the economy generally requiring the use of a technique, such as Computable General Equilibrium (CGE) modelling. Since the larger states generate a larger share of total GST revenues, even with fiscal equalisation they still receive a larger overall share of GST redistribution. The absolute sums of additional tourism GST revenue redistributed will thus be greater to those states. However, Tasmania will also enjoy a share of additional GST receipts from tourism expenditure in other states allocated to it on the basis of the Commonwealth redistribution formula.
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The tourism taxes referred to in this report include taxes on both tourism production and on the sale of tourism products. This report thus provides additional detail on tourism taxes to that which is included in either ATSA or the State/Territory TSA developed by the STCRC. Both of these TSA frameworks include only those taxes that are levied on the sale of tourism products. The estimation of the tourism production taxes for six Australian states and two territories relies heavily on the tourism output estimates from STCRC State and Territory TSA7, and the MMRF database 2003/04 developed by the Centre of Policy Studies (CoPS) at Monash University8. This database recognises six different production taxes: payroll taxes, property taxes, FBT, agricultural-land taxes, other federal production taxes, and other state production taxes. Payroll tax, property tax, land tax, and other state production taxes are state levied taxes on production and accrue to state governments. FBT and other federal production taxes are generated in states and accrue to the federal government. Payroll tax is levied on the annual payroll of employers according to formulae which vary from one state or territory to another. Payroll tax is levied on large firms within an industry. A firm is defined as large if the sum of wages, salaries and supplements and imputed wages for that firm is above the payroll tax threshold. Each such firm pays a fraction of the amount by which its wage bill exceeds the threshold. Hence, there are differences in payroll tax rates not only between states but also as applied to the overall output of industries within a state. For examples, the rate of payroll tax paid to industry output of Food Manufacturing in New South Wales is 0.37%, in Victoria it is 0.41%, in Queensland 0.28%, in South Australia 0.38%, in Western Australia 0.42%, in Tasmania 0.35%, in Northern Territory 0.32%, and in the Australian Capital Territory it is 0.37% (see Table A.4, Appendix A).
7 STCRC 2007 8 Adams 2006
Estimates for 2003/04
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Property taxes include taxes on immobile property and stamp duties, and are levied in proportion to the rental cost of fixed capital. In this report, property taxes, which are in fact levied by local governments, have been included with state government taxes. Other production taxes are derived from the Other Costs in the Agriculture and business service industry of the MMRF database. This has been mapped to the tourism industry data to provide taxes on motor vehicle hiring and other production taxes in agriculture, which arise from statutory levies (e.g. product marketing, research and development). Statutory levies in the agriculture industry have been excluded from the production tax estimates in this report. Note that FBT and other federal production taxes are levied by the state or territory government but accrue to the federal government, whereas the rest of production taxes accrue to the state governments. For the purposes of this report, tourism production taxes have been estimated by using STCRC state and territory tourism output data9 and tourism production tax rates. The tourism production tax rates come from the MMRF database with the mapping between the tourism and MMRF industries. Further details on the method of deriving tourism production taxes are provided in Appendix A. These data sources provide the necessary information to derive production taxes on tourism consistent with the State and Territory TSAs developed by the STCRC10, which add up to the ATSA11. The estimation of the tourism product taxes for eight Australian states/territories is derived from the STCRC State and Territory TSA estimates of net taxes on tourism products12. This report identifies three categories of taxes on tourism products: GST, other commodity taxes (state and federal), and subsidies on commodities (state and federal). State ‘other commodity’ taxes comprise alcohol taxes and gambling taxes. Federal other commodity taxes comprise fuel taxes and other taxes (taxes on imports). Again, state subsidies refer to local area and long distance passenger transportation while federal subsidies refer only to long distance passenger transportation.
9 STCRC 2007 10 STCRC 2007 11 Australian Bureau of Statistics 2007 12 STCRC 2007
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Chapter 2
PRODUCTION TAXES ON TOURISM Table 1: Tourism Production Taxes, by Type of Tax, 2003/04, $m
NSW VIC QLD SA WA TAS NT ACT AUS
State taxes
Property taxes 172.8 78.4 127.5 22.9 32.0 7.6 2.7 8.2 452.2
Payroll taxes 168.8 87.2 76.7 23.5 39.8 10.1 7.0 4.5 417.5
Total 341.6 165.5 204.2 46.4 71.8 17.7 9.7 12.8 869.7
Federal taxes
FBT 57.4 29.4 32.8 8.1 12.5 3.7 3.8 2.4 150.1
Other federal taxes 2.2 1.1 1.4 0.4 0.8 0.1 0.1 0.1 6.2
Total 59.5 30.5 34.2 8.5 13.3 3.7 3.9 2.5 156.3
Total 401.2 196.1 238.3 54.9 85.1 21.5 13.6 15.3 1026.0
Table 2: Tourism Production Taxes, by Type of Industry, 2003/04, $m NSW VIC QLD SA WA TAS NT ACT AUS
Travel agency and tour operator services
2.4 1.3 1.6 0.4 0.6 0.4 0.2 0.1 7
Taxi transport 1.0 0.6 1.5 0.2 0.3 0.1 0.0 0.1 4
Air and water transport 79.1 16.8 25.3 3.8 6.0 1.1 2.3 1.7 136
Motor vehicle hiring 1.7 0.8 1.2 0.4 0.6 0.2 0.1 0.1 5
Accommodation 87.4 43.9 61.3 12.0 20.1 5.7 2.8 3.9 237
Cafés, restaurants and food outlets 12.2 6.1 8.5 1.6 2.8 0.8 0.4 0.5 33
Clubs, pubs, taverns and bars 5.9 3.0 4.1 0.8 1.4 0.4 0.2 0.3 16
Other road transport 18.8 10.9 25.0 3.6 6.2 1.9 2.3 2.3 71
Rail transport 5.8 2.4 1.3 0.3 0.1 0.0 0.0 0.0 10
Food manufacturing 11.0 7.4 6.3 1.4 2.1 0.7 0.0 0.1 29
Beverage manufacturing 3.2 1.9 2.8 1.2 0.8 0.1 0.0 0.0 10
Transport equipment manufacturing 2.1 1.5 0.6 0.4 0.3 0.0 0.0 0.0 5
Other manufacturing 12.8 11.8 7.0 1.6 2.1 0.6 0.0 0.1 36
Retail trade 65.6 30.7 36.2 8.8 13.8 4.0 1.9 2.0 163
Casinos and other gambling services 0.7 0.3 0.6 0.1 0.2 0.0 0.1 0.0 2
Libraries, museums and arts 2.5 1.2 2.0 0.3 0.5 0.2 0.2 0.1 7
Other entertainment services 8.7 4.1 6.8 0.9 1.8 0.6 0.7 0.3 24
Education 13.8 9.0 3.7 1.2 3.1 0.6 0.3 0.5 32
Ownership of dwellings 36.6 28.8 22.0 9.7 11.7 2.7 0.8 1.8 114
All other industries 29.8 13.7 20.4 6.4 10.6 1.5 1.3 1.3 85
Total 401.2 196.1 238.3 54.9 85.1 21.5 13.6 15.3 1026
Estimates for 2003/04
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Table 3: State Tourism Property Taxes, by Type of Industry, 2003/04, $m NSW VIC QLD SA WA TAS NT ACT AUS
Travel agency and tour operator services
0.4 0.2 0.4 0.0 0.1 0.0 0.0 0.0 1.1
Taxi transport 0.6 0.3 0.9 0.1 0.1 0.1 0.0 0.1 2.2
Air and water transport 47.8 8.4 18.1 1.6 2.9 0.6 0.6 1.0 81.0
Motor vehicle hiring 0.4 0.2 0.4 0.1 0.1 0.1 0.0 0.0 1.4
Accommodation 29.2 12.3 29.2 3.3 5.2 1.3 0.4 1.9 82.9
Cafés, restaurants and food outlets 4.1 1.7 4.1 0.4 0.7 0.2 0.1 0.3 11.5
Clubs, pubs, taverns and bars 2.0 0.8 2.0 0.2 0.4 0.1 0.0 0.1 5.6
Other road transport 11.2 5.8 18.3 2.0 3.3 0.9 0.4 1.6 43.6
Rail transport 1.9 0.6 0.6 0.1 0.0 0.0 0.0 0.0 3.2
Food manufacturing 5.5 3.1 3.2 0.5 0.7 0.2 0.0 0.0 13.3
Beverage manufacturing 2.8 1.6 2.7 1.0 0.6 0.1 0.0 0.0 8.8
Transport equipment manufacturing 0.5 0.3 0.2 0.1 0.0 0.0 0.0 0.0 1.1
Other manufacturing 7.2 4.3 4.6 0.6 0.9 0.3 0.0 0.1 18.0
Retail trade 9.8 3.9 8.8 1.0 1.6 0.4 0.1 0.5 26.1
Casinos and other gambling services 0.2 0.1 0.2 0.0 0.0 0.0 0.0 0.0 0.6
Libraries, museums and arts 0.7 0.3 0.8 0.1 0.1 0.0 0.0 0.0 2.1
Other entertainment services 2.4 1.1 2.9 0.2 0.4 0.1 0.1 0.1 7.3
Education 1.7 1.1 0.7 0.3 0.4 0.1 0.0 0.1 4.3
Ownership of dwellings 36.6 28.8 22.0 9.7 11.7 2.7 0.8 1.8 114.0
All other industries 8.0 3.3 7.6 1.7 2.5 0.4 0.1 0.5 24.1
Total 172.8 78.4 127.5 22.9 32.0 7.6 2.7 8.2 452.2
Note: Property taxes include taxes on property for local government.
STATE AND FEDERAL TAXES ON TOURISM IN AUSTRALIA
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Table 4: Federal Tourism Fringe Benefits Taxes (FBT), by Type of Industry, 2003/04, $m NSW VIC QLD SA WA TAS NT ACT AUS
Travel agency and tour operator services
0.4 0.3 0.3 0.1 0.1 0.1 0.1 0.0 1.3
Taxi transport 0.3 0.2 0.4 0.1 0.1 0.1 0.0 0.0 1.3
Air and water transport 19.4 6.3 4.4 1.3 1.5 0.3 1.2 0.5 34.9
Motor vehicle hiring 0.2 0.1 0.2 0.0 0.1 0.0 0.0 0.0 0.7
Accommodation 11.0 6.4 9.0 2.0 3.2 1.1 0.8 0.6 34.1
Cafés, restaurants and food outlets 1.5 0.9 1.2 0.3 0.4 0.2 0.1 0.1 4.8
Clubs, pubs, taverns and bars 0.7 0.4 0.6 0.1 0.2 0.1 0.1 0.0 2.3
Other road transport 1.5 1.0 1.8 0.4 0.7 0.2 0.3 0.2 6.2
Rail transport 1.2 0.6 0.3 0.1 0.0 0.0 0.0 0.0 2.1
Food manufacturing 1.2 0.8 0.8 0.2 0.3 0.1 0.0 0.0 3.5
Beverage manufacturing 0.1 0.0 0.1 0.0 0.0 0.0 0.0 0.0 0.2
Transport equipment manufacturing 0.3 0.2 0.1 0.1 0.0 0.0 0.0 0.0 0.8
Other manufacturing 1.3 1.3 0.6 0.2 0.2 0.1 0.0 0.0 3.8
Retail trade 10.4 5.9 7.5 1.8 2.7 0.9 0.6 0.5 30.2
Casinos and other gambling services 0.1 0.1 0.1 0.0 0.0 0.0 0.0 0.0 0.3
Libraries, museums and arts 0.4 0.2 0.3 0.1 0.1 0.0 0.0 0.0 1.1
Other entertainment services 1.2 0.7 1.0 0.2 0.3 0.1 0.1 0.1 3.7
Education 2.2 1.8 0.8 0.2 0.6 0.1 0.1 0.1 6.0
Ownership of dwellings 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
All other industries 3.9 2.2 3.1 1.0 1.7 0.3 0.3 0.2 12.7
Total 57.4 29.4 32.8 8.1 12.5 3.7 3.8 2.4 150.1
Estimates for 2003/04
8
Table 5: State Tourism Payroll Taxes, by Type of Industry, 2003/04, $m NSW VIC QLD SA WA TAS NT ACT AUS
Travel agency and tour operator services 1.7 0.9 0.9 0.3 0.4 0.2 0.1 0.1 4.6
Taxi transport 0.2 0.1 0.2 0.1 0.1 0.0 0.0 0.0 0.6
Air and water transport 11.9 2.1 2.9 0.8 1.5 0.1 0.5 0.2 20.0
Motor vehicle hiring 0.8 0.4 0.4 0.2 0.3 0.1 0.1 0.0 2.3
Accommodation 47.1 25.1 23.1 6.7 11.7 3.3 1.5 1.4 120.0
Cafés, restaurants and food outlets 6.6 3.5 3.2 0.9 1.6 0.4 0.2 0.2 16.7
Clubs, pubs, taverns and bars 3.2 1.7 1.6 0.4 0.8 0.2 0.1 0.1 8.1
Other road transport 6.1 4.0 4.9 1.3 2.3 0.7 1.6 0.4 21.2
Rail transport 2.8 1.2 0.4 0.2 0.1 0.0 0.0 0.0 4.6
Food manufacturing 4.3 3.5 2.2 0.7 1.1 0.3 0.0 0.0 12.2
Beverage manufacturing 0.4 0.2 0.1 0.1 0.1 0.0 0.0 0.0 0.9
Transport equipment manufacturing 1.3 1.0 0.3 0.3 0.2 0.0 0.0 0.0 3.1
Other manufacturing 4.2 6.2 1.8 0.8 0.9 0.2 0.0 0.0 14.2
Retail trade 45.5 20.9 19.9 6.0 9.5 2.8 1.2 1.0 106.7
Casinos and other gambling services 0.4 0.2 0.2 0.0 0.1 0.0 0.0 0.0 1.1
Libraries, museums and arts 1.5 0.7 0.8 0.2 0.3 0.1 0.2 0.0 3.8
Other entertainment services 5.2 2.3 2.9 0.5 1.1 0.4 0.5 0.1 13.0
Education 9.9 6.1 2.2 0.7 2.1 0.4 0.2 0.2 21.7
Ownership of dwellings 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
All other industries 15.9 7.2 8.5 3.4 5.7 0.8 0.7 0.5 42.7
Total 168.8 87.2 76.7 23.5 39.8 10.1 7.0 4.5 417.5
STATE AND FEDERAL TAXES ON TOURISM IN AUSTRALIA
9
Table 6: Federal Tourism Other Production Taxes, by Type of Industry, 2003/04, $m NSW VIC QLD SA WA TAS NT ACT AUS
Travel agency and tour operator services
0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Taxi transport 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Air and water transport 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Motor vehicle hiring 0.2 0.1 0.2 0.0 0.1 0.0 0.0 0.0 0.7
Accommodation 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Cafés, restaurants and food outlets 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Clubs, pubs, taverns and bars 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Other road transport 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Rail transport 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Food manufacturing 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Beverage manufacturing 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Transport equipment manufacturing 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Other manufacturing 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Retail trade 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Casinos and other gambling services 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Libraries, museums and arts 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Other entertainment services 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Education 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Ownership of dwellings 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
All other industries 1.9 1.0 1.2 0.4 0.8 0.1 0.1 0.1 5.5
Total 2.2 1.1 1.4 0.4 0.8 0.1 0.1 0.1 6.2 Note: Other Production Taxes are calculated as a residual of those production taxes not captured elsewhere. They are derived from the Other Costs in the Agriculture and Business Service Industry of the MMRF database, then mapped to the tourism industry data to provide taxes on motor vehicle hiring and other production taxes in agriculture, with agricultural levies subsequently excluded for the purposes of this report.
Estimates for 2003/04
10
Chapter 3
COMMODITY TAXES ON TOURISM Table 7: Tourism GST and Other Commodity Taxes Federal, Levied by State or Territory, 2003/04, $m
NSW VIC QLD SA WA TAS NT ACT AUS
GST 1424.1 896.2 1155.2 276.7 430.6 124.9 106.8 75.9 4490.4
State taxes
Other commodity taxes 210.0 133.6 182.3 36.1 56.4 19.6 14.5 10.0 662.5
Subsidies -478.5 -164.6 -135.1 -31.9 -46.4 -8.6 -23.9 -9.0 -898.0
Total -268.5 -31.0 47.2 4.2 10.0 11.1 -9.5 1.0 -235.5
Federal taxes
Other commodity taxes 572.1 338.9 389.3 134.1 192.2 46.9 36.8 30.8 1741.1
Subsidies -53.4 -15.8 -16.2 -3.4 -5.6 -1.2 -3.3 -1.2 -100.0
Total 518.7 323.1 373.1 130.7 186.6 45.8 33.5 29.7 1641.1
Total 1674.4 1188.3 1575.4 411.6 627.2 181.7 130.9 106.5 5896.0
Table 8: GST Revenues Generated by Tourism, by State or Territory, 2003/04, $m NSW VIC QLD SA WA TAS NT ACT AUS
Travel agency and tour operator services 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Taxi fares 4.0 2.7 3.8 0.9 1.1 0.8 0.4 0.3 14.0
Long distance passenger transportation 266.5 177.3 207.5 43.8 83.8 20.7 28.3 17.0 845.0
Motor vehicle hire and lease 25.6 14.5 17.4 6.1 9.6 2.2 2.8 1.7 80.0
Accommodation services 93.9 56.7 82.4 16.7 25.7 9.3 8.5 4.8 298.0
Takeaway and restaurant meals 236.8 148.3 203.2 47.7 70.2 23.7 14.2 12.0 756.0
Shopping (including gifts and souvenirs) 287.4 188.0 240.9 57.8 82.4 24.9 16.7 13.9 912.1
Local area passenger transportation 12.6 7.6 10.1 1.8 3.0 1.1 1.2 0.6 38.0
Repair and maintenance of motor vehicles
9.2 5.2 5.7 2.2 2.9 0.8 0.6 0.5 27.0
Fuel (petrol, diesel) 146.4 86.9 93.0 34.8 47.5 12.9 9.5 8.0 438.9
Food products 27.4 16.9 23.0 5.2 8.0 2.6 1.7 1.3 86.1
Alcoholic beverages and other beverages
101.9 63.0 86.4 19.8 30.0 9.8 6.2 5.1 322.1
Motor vehicles, caravans, boats, etc. 15.9 9.8 10.3 3.4 4.8 1.4 1.0 0.8 47.5
Recreational, cultural and sports services
61.3 39.1 59.4 8.1 13.6 6.2 6.3 3.1 197.0
Gambling and betting services 28.8 19.4 26.1 3.6 6.2 2.6 2.5 1.2 90.4
Education 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Actual and imputed rent on holiday houses
0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Other tourism goods and services 106.5 60.8 85.8 24.7 41.9 6.1 6.9 5.7 338.4
Total 1424.1 896.2 1155.2 276.7 430.6 124.9 106.8 75.9 4490.4
STATE AND FEDERAL TAXES ON TOURISM IN AUSTRALIA
11
Table 9: Tourism GST, Revenues Distributed to States or Territories, 2003/04, $m
NSW VIC QLD SA WA TAS NT ACT AUS
Total tourism GST, generated (1)
1424.1 896.2 1155.2 276.7 430.6 124.9 106.8 75.9 4490.4
Total tourism GST, received (2)
1305.4 942.0 883.7 426.2 426.2 188.4 228.8 89.7 4490.4
Balance on tourism GST (1-2)
118.8 -45.9 271.4 -149.5 4.4 -63.5 -122.0 -13.8 0.0
Note: The Balance of tourism GST (1-2) shows disparity between total GST generated and received where the nationally based redistribution formula is not related to the state or territory in which the tourism GST has been collected.
Table 10: Tourism Other Commodity Taxes (Including Subsidies), by State or Territory, 2003/04, $m
NSW VIC QLD SA WA TAS NT ACT AUS
Travel agency and tour operator services
0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Taxi fares 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Long distance passenger transportation
-440.8 -130.2 -134.1 -27.9 -46.6 -9.7 -27.1 -9.6 -826.0
Motor vehicle hire and lease 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Accommodation services 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Takeaway and restaurant meals
0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Shopping (including gifts and souvenirs)
27.7 18.1 23.2 5.6 7.9 2.4 1.6 1.3 87.9
Local area passenger transportation
-91.1 -50.1 -17.2 -7.4 -5.4 -0.1 -0.1 -0.6 -172.0
Repair and maintenance of motor vehicles
0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Fuel (petrol, diesel) 423.0 251.2 268.7 100.4 137.1 37.4 27.4 23.0 1268.1
Food products 2.2 1.4 1.8 0.4 0.6 0.2 0.1 0.1 6.9
Alcoholic beverages and other beverages
141.0 87.2 119.6 27.4 41.5 13.5 8.5 7.1 445.9
Motor vehicles, caravans, boats, etc.
3.5 2.2 2.3 0.8 1.1 0.3 0.2 0.2 10.5
Recreational, cultural and sports services
0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Gambling and betting services 69.0 46.5 62.7 8.7 14.9 6.1 5.9 2.9 216.6
Education 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Actual and imputed rent on holiday houses
0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Other tourism goods and services
115.7 66.0 93.3 26.9 45.5 6.6 7.5 6.2 367.6
Total 250.2 292.1 420.3 134.9 196.6 56.8 24.1 30.6 1405.6
Estimates for 2003/04
12
Table 11: Tourism Fuel, Alcohol, Gambling & Other Taxes & Subsidy, by State or Territory, 2003/04, $m
NSW VIC QLD SA WA TAS NT ACT AUS
State taxes
Alcohol taxes 141.0 87.2 119.6 27.4 41.5 13.5 8.5 7.1 445.9
Gambling taxes 69.0 46.5 62.7 8.7 14.9 6.1 5.9 2.9 216.6
Subsidies -478.5 -164.6 -135.1 -31.9 -46.4 -8.6 -23.9 -9.0 -898.0
Total -268.5 -31.0 47.2 4.2 10.0 11.1 -9.5 1.0 -235.5
Federal taxes
Fuel taxes 423.0 251.2 268.7 100.4 137.1 37.4 27.4 23.0 1268.1
Other taxes 149.1 87.7 120.6 33.6 55.1 9.6 9.5 7.8 473.0
Subsidies -53.4 -15.8 -16.2 -3.4 -5.6 -1.2 -3.3 -1.2 -100.0
Total 518.7 323.1 373.1 130.7 186.6 45.8 33.5 29.7 1641.1
Total 250.2 292.1 420.3 134.9 196.6 56.8 24.1 30.6 1405.6
Note: State ‘subsidies’ refer to local area and long distance passenger transportation while federal subsidies refer only to long distance passenger transportation. Federal ‘other taxes’ are import tariffs imposed on Shopping (including gifts and souvenirs), Food products, Motor vehicles, caravans, boats, etc, and Other tourism goods and services.
STATE AND FEDERAL TAXES ON TOURISM IN AUSTRALIA
13
Chapter 4
TOTAL TOURISM TAXES LEVIED AND RECEIVED BY STATES/TERRITORIES
Table 12: Tourism Taxes Levied and Received in NSW, 2003/04
Tourism GSP and Consumption $m
Tourism GSP 12240.9
Tourism consumption 24201.3
Taxes Levied on Tourism in NSW $m % of tourism GSP
% of tourism consumption
State taxes
State taxes on production 341.6 2.8 1.4
State taxes on products 210.0 1.7 0.9
State subsidies -478.5 -3.9 -2.0
Total 73.2 0.6 0.3
Federal taxes
Federal taxes on production 59.5 0.5 0.2
Federal taxes on products 572.1 4.7 2.4
Federal subsidies -53.4 -0.4 -0.2
Total 578.2 4.7 2.4
GST on Tourism 1424.1 11.6 5.9
Total Taxes Levied on Tourism 2075.5 17.0 8.6
Tax Revenues Received on Tourism in NSW $m % of tourism GSP
% of tourism consumption
State taxes
State taxes on production 341.6 2.8 1.4
State taxes on products 210.0 1.7 0.9
State subsidies -478.5 -3.9 -2.0
Total 73.2 0.6 0.3
Federal taxes
Federal taxes on production 0.0 0.0 0.0
Federal taxes on products 0.0 0.0 0.0
Federal subsidies -53.4 -0.4 -0.2
Total -53.4 -0.4 -0.2
Distribution from GST raised on tourism nationally 1305.4 10.7 5.4
Total Tax Receipts on Tourism 1325.2 10.8 5.5
Estimates for 2003/04
14
Table 13: Tourism Taxes Levied and Received in VIC, 2003/04
Tourism GSP and Consumption $m
Tourism GSP 7278.6
Tourism consumption 15421.1
Taxes Levied on Tourism in VIC $m % of tourism GSP
% of tourism consumption
State taxes
State taxes on production 165.5 2.3 1.1
State taxes on products 133.6 1.8 0.9
State subsidies -164.6 -2.3 -1.1
Total 134.6 1.8 0.9
Federal taxes
Federal taxes on production 30.5 0.4 0.2
Federal taxes on products 338.9 4.7 2.2
Federal subsidies -15.8 -0.2 -0.1
Total 353.6 4.9 2.3
GST on Tourism 896.2 12.3 5.8
Total Taxes Levied on Tourism 1384.4 19.0 9.0
Tax Revenues Received on Tourism in VIC $m % of tourism GSP
% of tourism consumption
State taxes
State taxes on production 165.5 2.3 1.1
State taxes on products 133.6 1.8 0.9
State subsidies -164.6 -2.3 -1.1
Total 134.6 1.8 0.9
Federal taxes
Federal taxes on production 0.0 0.0 0.0
Federal taxes on products 0.0 0.0 0.0
Federal subsidies -15.8 -0.2 -0.1
Total -15.8 -0.2 -0.1
Distribution from GST raised on tourism nationally 942.0 12.9 6.1
Total Tax Receipts on Tourism 1060.8 14.6 6.9
STATE AND FEDERAL TAXES ON TOURISM IN AUSTRALIA
15
Table 14: Tourism Taxes Levied and Received in QLD, 2003/04
Tourism GSP and Consumption $m
Tourism GSP 8111.7
Tourism consumption 19170.7
Taxes Levied on Tourism in QLD $m % of tourism GSP
% of tourism consumption
State taxes
State taxes on production 204.2 2.5 1.1
State taxes on products 182.3 2.2 1.0
State subsidies -135.1 -1.7 -0.7
Total 251.4 3.1 1.3
Federal taxes
Federal taxes on production 34.2 0.4 0.2
Federal taxes on products 389.3 4.8 2.0
Federal subsidies -16.2 -0.2 -0.1
Total 407.2 5.0 2.1
GST on Tourism 1155.2 14.2 6.0
Total Taxes Levied on Tourism 1813.8 22.4 9.5
Tax Revenues Received on Tourism in QLD $m % of tourism GSP
% of tourism consumption
State taxes
State taxes on production 204.2 2.5 1.1
State taxes on products 182.3 2.2 1.0
State subsidies -135.1 -1.7 -0.7
Total 251.4 3.1 1.3
Federal taxes
Federal taxes on production 0.0 0.0 0.0
Federal taxes on products 0.0 0.0 0.0
Federal subsidies -16.2 -0.2 -0.1
Total -16.2 -0.2 -0.1
Distribution from GST raised on tourism nationally 883.7 10.9 4.6
Total Tax Receipts on Tourism 1118.8 13.8 5.8
Estimates for 2003/04
16
Table 15: Tourism Taxes Levied and Received in SA, 2003/04
Tourism GSP and Consumption $m
Tourism GSP 2237.5
Tourism consumption 4592.9
Taxes Levied on Tourism in SA $m % of tourism GSP
% of tourism consumption
State taxes
State taxes on production 46.4 2.1 1.0
State taxes on products 36.1 1.6 0.8
State subsidies -31.9 -1.4 -0.7
Total 50.6 2.3 1.1
Federal taxes
Federal taxes on production 8.5 0.4 0.2
Federal taxes on products 134.1 6.0 2.9
Federal subsidies -3.4 -0.2 -0.1
Total 139.2 6.2 3.0
GST on Tourism 276.7 12.4 6.0
Total taxes Levied on Tourism 466.5 20.8 10.2
Tax Revenues Received on Tourism in SA $m % of tourism GSP
% of tourism consumption
State taxes
State taxes on production 46.4 2.1 1.0
State taxes on products 36.1 1.6 0.8
State subsidies -31.9 -1.4 -0.7
Total 50.6 2.3 1.1
Federal taxes
Federal taxes on production 0.0 0.0 0.0
Federal taxes on products 0.0 0.0 0.0
Federal subsidies -3.4 -0.2 -0.1
Total -3.4 -0.2 -0.1
Distribution from GST raised on tourism nationally 426.2 19.0 9.3
Total Tax Receipts on Tourism 473.4 21.2 10.3
STATE AND FEDERAL TAXES ON TOURISM IN AUSTRALIA
17
Table 16: Tourism Taxes Levied and Received in WA, 2003/04
Tourism GSP and Consumption $m
Tourism GSP 3170.1
Tourism consumption 7154.4
Taxes Levied on Tourism in WA $m % of tourism GSP
% of tourism consumption
State taxes
State taxes on production 71.8 2.3 1.0
State taxes on products 56.4 1.8 0.8
State subsidies -46.4 -1.5 -0.6
Total 81.8 2.6 1.1
Federal taxes
Federal taxes on production 13.3 0.4 0.2
Federal taxes on products 192.2 6.1 2.7
Federal subsidies -5.6 -0.2 -0.1
Total 199.9 6.3 2.8
GST on Tourism 430.6 13.6 6.0
Total Taxes Levied on Tourism 712.3 22.5 10.0
Tax Revenues Received on Tourism in WA $m % of tourism GSP
% of tourism consumption
State taxes
State taxes on production 71.8 2.3 1.0
State taxes on products 56.4 1.8 0.8
State subsidies -46.4 -1.5 -0.6
Total 81.8 2.6 1.1
Federal taxes
Federal taxes on production 0.0 0.0 0.0
Federal taxes on products 0.0 0.0 0.0
Federal subsidies -5.6 -0.2 -0.1
Total -5.6 -0.2 -0.1
Distribution from GST raised on tourism nationally 426.2 13.4 6.0
Total Tax Receipts on Tourism 502.3 15.8 7.0
Estimates for 2003/04
18
Table 17: Tourism Taxes Levied and Received in TAS, 2003/04
Tourism GSP and Consumption $m
Tourism GSP 949.7
Tourism consumption 2181.7
Taxes levied on tourism in TAS $m % of tourism GSP
% of tourism consumption
State taxes
State taxes on production 17.7 1.9 0.8
State taxes on products 19.6 2.1 0.9
State subsidies -8.6 -0.9 -0.4
Total 28.8 3.0 1.3
Federal taxes
Federal taxes on production 3.7 0.4 0.2
Federal taxes on products 46.9 4.9 2.2
Federal subsidies -1.2 -0.1 -0.1
Total 49.5 5.2 2.3
GST on Tourism 124.9 13.2 5.7
Total Taxes Levied on Tourism 203.2 21.4 9.3
Tax Revenues Received on Tourism in TAS $m % of tourism GSP
% of tourism consumption
State taxes
State taxes on production 17.7 1.9 0.8
State taxes on products 19.6 2.1 0.9
State subsidies -8.6 -0.9 -0.4
Total 28.8 3.0 1.3
Federal taxes
Federal taxes on production 0.0 0.0 0.0
Federal taxes on products 0.0 0.0 0.0
Federal subsidies -1.2 -0.1 -0.1
Total -1.2 -0.1 -0.1
Distribution from GST raised on tourism nationally 188.4 19.8 8.6
Total tax receipts on tourism 216.0 22.7 9.9
STATE AND FEDERAL TAXES ON TOURISM IN AUSTRALIA
19
Table 18: Tourism Taxes Levied and Received in NT, 2003/04
Tourism GSP and Consumption $m
Tourism GSP 740.6
Tourism consumption 1786.8
Taxes levied on tourism in NT $m % of tourism GSP
% of tourism consumption
State taxes
State taxes on production 9.7 1.3 0.5
State taxes on products 14.5 2.0 0.8
State subsidies -23.9 -3.2 -1.3
Total 0.2 0.0 0.0
Federal taxes
Federal taxes on production 3.9 0.5 0.2
Federal taxes on products 36.8 5.0 2.1
Federal subsidies -3.3 -0.4 -0.2
Total 37.5 5.1 2.1
GST on Tourism 106.8 14.4 6.0
Total Taxes Levied on Tourism 144.5 19.5 8.1
Tax Revenues Received on Tourism in NT $m % of tourism GSP
% of tourism consumption
State taxes
State taxes on production 9.7 1.3 0.5
State taxes on products 14.5 2.0 0.8
State subsidies -23.9 -3.2 -1.3
Total 0.2 0.0 0.0
Federal taxes
Federal taxes on production 0.0 0.0 0.0
Federal taxes on products 0.0 0.0 0.0
Federal subsidies -3.3 -0.4 -0.2
Total -3.3 -0.4 -0.2
Distribution from GST raised on tourism nationally 228.8 30.9 12.8
Total Tax Receipts on Tourism 225.7 30.5 12.6
Estimates for 2003/04
20
Table 19: Tourism Taxes Levied and Received in ACT, 2003/04
Tourism GSP and Consumption $m
Tourism GSP 532.7
Tourism consumption 1284.1
Taxes Levied on Tourism in ACT $m % of tourism GSP
% of tourism consumption
State taxes
State taxes on production 12.8 2.4 1.0
State taxes on products 10.0 1.9 0.8
State subsidies -9.0 -1.7 -0.7
Total 13.8 2.6 1.1
Federal taxes
Federal taxes on production 2.5 0.5 0.2
Federal taxes on products 30.8 5.8 2.4
Federal subsidies -1.2 -0.2 -0.1
Total 32.2 6.0 2.5
GST on Tourism 75.9 14.2 5.9
Total Taxes Levied on Tourism 121.8 22.9 9.5
Tax Revenues Received on Tourism in ACT $m % of tourism GSP
% of tourism consumption
State taxes
State taxes on production 12.8 2.4 1.0
State taxes on products 10.0 1.9 0.8
State subsidies -9.0 -1.7 -0.7
Total 13.8 2.6 1.1
Federal taxes
Federal taxes on production 0.0 0.0 0.0
Federal taxes on products 0.0 0.0 0.0
Federal subsidies -1.2 -0.2 -0.1
Total -1.2 -0.2 -0.1
Distribution from GST raised on tourism nationally 89.7 16.8 7.0
Total Tax Receipts on Tourism 102.3 19.2 8.0
STATE AND FEDERAL TAXES ON TOURISM IN AUSTRALIA
21
Table 20: Tourism Taxes Levied and Received in Australia, 2003/04
Tourism GDP and Consumption $m
Tourism GDP 35262.0
Tourism consumption 75798.0
Taxes Levied on Tourism in Australia $m % of tourism GDP
% of tourism consumption
State taxes
State taxes on production 869.7 2.5 1.1
State taxes on products 662.5 1.9 0.9
State subsidies -898.0 -2.5 -1.2
Total 634.2 1.8 0.8
Federal taxes
Federal taxes on production 156.3 0.4 0.2
Federal taxes on products 1741.1 4.9 2.3
Federal subsidies -100.0 -0.3 -0.1
Total 1797.4 5.1 2.4
GST on Tourism 4490.4 12.7 5.9
Total Taxes Levied on Tourism 6922.0 19.6 9.1
Tax Revenues Received on Tourism in Australia $m % of tourism GDP
% of tourism consumption
State taxes
State taxes on production 869.7 2.5 1.1
State taxes on products 662.5 1.9 0.9
State subsidies -898.0 -2.5 -1.2
Total 634.2 1.8 0.8
Federal taxes
Federal taxes on production 0.0 0.0 0.0
Federal taxes on products 0.0 0.0 0.0
Federal subsidies -100.0 -0.3 -0.1
Total -100.0 -0.3 -0.1
Distribution from GST raised on tourism nationally 4490.4 12.7 5.9
Total Tax Receipts on Tourism 5024.6 14.2 6.6
Estimates for 2003/04
22
Table 21: Direct Tax Receipts Impact of $100m Change in Tourism Expenditure in NSW
$m
Change in tourism consumption 100.0
State government receipts
Change in state taxes 2.3
Change in state share of GST 1.7
Change in state subsidies -2.0
Total 2.0
Federal government receipts
Change in federal taxes 2.6
Change in federal subsidies -0.2
Total 2.4
Other state receipts
Change in receipts to states/territories other than NSW from distribution of GST revenues 4.2
Total Increase in Tourism Taxation 8.6
Table 22: Direct Tax Receipts Impact of $100m Change in Tourism Expenditure in VIC
$m
Change in tourism consumption 100.0
State government receipts
Change in state taxes 1.9
Change in state share of GST 1.2
Change in state subsidies -1.1
Total 2.1
Federal government receipts
Change in federal taxes 2.4
Change in federal subsidies -0.1
Total 2.3
Other state receipts
Change in receipts to states/territories other than VIC from distribution of GST revenues 4.6
Total Increase in Tourism Taxation 9.0
STATE AND FEDERAL TAXES ON TOURISM IN AUSTRALIA
23
Table 23: Direct Tax Receipts Impact of $100m Change in Tourism Expenditure in QLD
$m
Change in tourism consumption 100.0
State government receipts
Change in state taxes 2.0
Change in state share of GST 1.2
Change in state subsidies -0.7
Total 2.5
Federal government receipts
Change in federal taxes 2.2
Change in federal subsidies -0.1
Total 2.1
Other state receipts
Change in receipts to states/territories other than QLD from distribution of GST revenues 4.8
Total Increase in Tourism Taxation 9.5
Table 24: Direct Tax Receipts Impact of $100m Change in Tourism Expenditure in SA
$m
Change in tourism consumption 100.0
State government receipts
Change in state taxes 1.8
Change in state share of GST 0.6
Change in state subsidies -0.7
Total 1.7
Federal government receipts
Change in federal taxes 3.1
Change in federal subsidies -0.1
Total 3.0
Other state receipts
Change in receipts to states/territories other than SA from distribution of GST revenues 5.5
Total Increase in Tourism Taxation 10.2
Estimates for 2003/04
24
Table 25: Direct Tax Receipts Impact of $100m Change in Tourism Expenditure in WA
$m
Change in tourism consumption 100.0
State government receipts
Change in state taxes 1.8
Change in state share of GST 0.6
Change in state subsidies -0.6
Total 1.7
Federal government receipts
Change in federal taxes 2.9
Change in federal subsidies -0.1
Total 2.8
Other state receipts
Change in receipts to states/territories other than WA from distribution of GST revenues 5.4
Total increase in tourism taxation 10.0
Table 26: Direct Tax Receipts Impact of $100m Change in Tourism Expenditure in TAS
$m
Change in tourism consumption 100.0
State government receipts
Change in state taxes 1.7
Change in state share of GST 0.2
Change in state subsidies -0.4
Total 1.6
Federal government receipts
Change in federal taxes 2.3
Change in federal subsidies -0.1
Total 2.3
Other state receipts
Change in receipts to states/territories other than TAS from distribution of GST revenues 5.5
Total Increase in Tourism Taxation 9.3
STATE AND FEDERAL TAXES ON TOURISM IN AUSTRALIA
25
Table 27: Direct Tax Receipts Impact of $100m Change in Tourism Expenditure in NT
$m
Change in tourism consumption 100.0
State government receipts
Change in state taxes 1.4
Change in state share of GST 0.3
Change in state subsidies -1.3
Total 0.3
Federal government receipts
Change in federal taxes 2.3
Change in federal subsidies -0.2
Total 2.1
Other state receipts
Change in receipts to states/territories other than NT from distribution of GST revenues 5.7
Total increase in tourism taxation 8.1
Table 28: Direct Tax Receipts Impact of $100m Change in Tourism Expenditure in ACT
$m
Change in tourism consumption 100.0
State government receipts
Change in state taxes 1.8
Change in state share of GST 0.1
Change in state subsidies -0.7
Total 1.2
Federal government receipts
Change in federal taxes 2.6
Change in federal subsidies -0.1
Total 2.5
Other state receipts
Change in receipts to states/territories other than ACT from distribution of GST revenues 5.8
Total increase in tourism taxation 9.5
Estimates for 2003/04
26
Table 29: Direct Tax Receipts Impact of $100m Change in Tourism Expenditure in Australia
$m
Change in tourism consumption 100.0
State government receipts
Change in state taxes 2.0
Change in state share of GST 5.9
Change in state subsidies -1.2
Total 6.8
Federal government receipts
Change in federal taxes 2.5
Change in federal subsidies -0.1
Total 2.4
Total increase in tourism taxation 9.1
STATE AND FEDERAL TAXES ON TOURISM IN AUSTRALIA
27
APPENDIX A: CONCEPTS, SOURCES AND METHODS USED IN DEVELOPING TAXES ON TOURISM FOR THE AUSTRALIAN STATES AND TERRITORIES
Derivation of Taxes on Production This Appendix explains the derivation of tourism production taxes, which can be used as a template for all states and territories. For illustrative purposes we use South Australia tourism industry output and MMRF production tax rates to derive South Australia tourism production taxes. The basic framework is the Tourism Satellite Account developed for South Australia13. Tourism output, South Australia TSA Table A.1 is taken from South Australia TSA 2003/04 showing tourism output for South Australia. This table indicates total tourism output, which is composed of direct output and interstate trade. It should be noted that industry output includes production taxes. The next step is to estimate the production taxes from industry output using MMRF production tax rates.
Table A.1: South Australia, Tourism output, 2003/04, $m
Tourism characteristic industries Travel agency and tour operator services 133.5
Taxi transport 39.8
Air and water transport 371.4
Motor vehicle hiring 63.9
Accommodation 443.4
Cafes, restaurants and food outlets 500.8
Total tourism characteristic industries 1552.6
Tourism connected industries Clubs, pubs, taverns and bars 126.5
Other road transport 148.5
Rail transport 38.2
Food manufacturing 181.8
Beverage manufacturing 257.3
Transport equipment manufacturing 56.4
Other manufacturing 212.5
Retail trade 487.7
Casinos and other gambling services 12.5
Libraries, museums and arts 37.6
Other entertainment services 69.8
Education 74.0
Ownership of dwellings 154.3
Total tourism connected industries 1857.1 All other industries 491.5
Total 3901.3
13 STCRC 2007
Estimates for 2003/04
28
Production tax rates using the MMRF database Table A.2 shows the production tax rate of the MMRF database14. MMRF recognises 6 different production taxes: Property tax, Fringe Benefits tax (FBT), Payroll tax, Agricultural-land tax, Other state production tax and Other federal production tax. Payroll tax, property tax, land tax, and other state production tax are state taxes on production. These are levied by, and accrue to, the state government. FBT and other federal production taxes are levied at the state level but accrue to the federal government. Payroll tax is levied on the annual payroll of employers. Property tax is levied in proportion to the rental cost of fixed capital. Other federal production taxes are largely comprised of statutory levies collected by the Commonwealth in relation to agriculture and business services.15
Table A.2: Production Tax Rates, South Australia, MMRF, %
Property Tax FBT Payroll Tax
Other Production
Tax, Federal 1 Agriculture animal 0.309 0.121 0.000 2.209
2 Agriculture other 0.339 0.173 0.000 2.273
3 Forestry 0.189 0.270 0.000 0.000
4 Fishing 0.321 0.175 0.567 0.000
5 Coal 0.537 0.002 0.024 0.000
6 Oil 1.183 0.014 0.056 0.000
7 Gas 0.263 0.000 0.168 0.000
8 Iron ore 0.991 0.045 0.173 0.000
9 Other metal ore 0.741 0.064 0.186 0.000
10 Other mining 0.739 0.065 0.210 0.000
11 Food animal 0.202 0.094 0.347 0.000
12 Food other 0.342 0.114 0.400 0.000
13 Drink 0.633 0.018 0.063 0.000
14 TCF 0.125 0.155 0.631 0.000
15 Wood products 0.408 0.171 0.581 0.000
16 Paper products 0.450 0.142 0.583 0.000
17 Manufacturing other 0.354 0.173 0.662 0.000
18 Petrol refinery 0.000 0.000 0.000 0.000
19 Chemical products 0.337 0.077 0.261 0.000
20 Plastic rubber products 0.304 0.154 0.731 0.000
21 Non metal mineral products 0.473 0.156 0.652 0.000
22 Cement 0.365 0.099 0.326 0.000
23 Iron steel 0.378 0.129 0.994 0.000
24 Aluminium 0.000 0.000 0.000 0.000
25 Metal products 0.330 0.139 0.414 0.000
26 Transport equipments 0.452 0.088 0.292 0.000
27 Other equipments 0.139 0.177 0.613 0.000
14 Adams 2006 15 Adams 2000
STATE AND FEDERAL TAXES ON TOURISM IN AUSTRALIA
29
Property Tax FBT Payroll Tax
Other Production
Tax, Federal 36 Gas supply 1.063 0.116 0.442 0.000
37 Water supply 1.320 0.024 0.085 0.000
38 Construction 0.191 0.286 0.762 0.000
39 Trade 0.138 0.242 0.819 0.000
40 Hotels cafes 0.301 0.185 0.619 0.000
41 Road transport 0.285 0.239 0.138 0.000
42 Rail transport 0.285 0.283 0.539 0.000
43 Water transport 0.514 0.082 0.157 0.000
44 Air transport 0.247 0.243 0.141 0.000
45 Transport other 0.968 0.191 0.621 0.000
46 Communication 0.853 0.175 0.575 0.000
47 Finance services 8.500 0.218 0.742 0.000
48 Owner dwelling 11.067 0.000 0.000 0.000
49 Business services 0.451 0.304 1.219 0.304
50 Government administration defence 1.074 0.376 1.202 0.000
51 Education 0.842 0.625 1.999 0.000
52 Health 0.247 0.657 2.101 0.000
53 Government other 0.706 0.399 1.276 0.000
54 Services other 0.361 0.329 0.997 0.000
55 Private transport service 0.000 0.000 0.000 0.000
Note: The tourism production tax rate is the ratio of tourism production taxes to the cost of tourism output.
Mapping between TSA and MMRF industries Since the industry data sets provided by the TSA and MMRF are different, the two data sets must be mapped to apply the MMRF production tax rates to the SA TSA tourism output. We apply MMRF production tax rates to the following mapping as in Table A.3.
Table A.3: Mapping Between TSA and MMRF Industries
TSA Industries MMRF Industries Travel agency and tour operator services Road transport Taxi transport Road transport Air and water transport Water transport Air transport Motor vehicle hiring Business services Accommodation Hotels cafes Cafes, restaurants and food outlets Hotels cafes Clubs, pubs, taverns and bars Hotels cafes Other road transport Road transport Rail transport Rail transport Food manufacturing Food animal
Estimates for 2003/04
30
TSA Industries MMRF Industries Food other Beverage manufacturing Drink Transport equipment manufacturing Transport equipments Other manufacturing Textile clothing footwear (TCF) Wood products Paper products Chemical products Non metal mineral products Retail trade Trade Casinos and other gambling services Services other Libraries, museums and arts Services other Other entertainment services Services other Education Education Ownership of dwellings Ownership dwelling All other industries
Since one industry in the TSA generally corresponds to several industries in the MMRF, it is necessary to disaggregate industry cost shares to derive production taxes as shown in the following example:
Tourism Payroll taxes of Air and Water Transport = {Total output of Air and Water transport * [Cost of Air transport / (Cost of Air Transport+ Cost of Water transport)] * Payroll tax rate of Air transport} + {Total output of Air and Water transport * [Cost of Water Transport / ( Cost of Air Transport + Cost of Water Transport)] * Payroll tax rate of Water Transport}
Air and Water Transport in the TSA data set is comprised of Air Transport and Water Transport in the MMRF data set. On the other hand, Retail Trade in the TSA set is mapped to Trade in the MMRF set where the latter is the more aggregated industry. Trade is composed by Retail Trade and Wholesale. However, the estimation problem is minimal as both industries have similar production tax rates. The disaggregation of All other industries in the TSA data set refers to Other tourism goods and services from Appendix 1: Tourism Product Concordance, ABS TSA 2003/04 which include, for example, Pharmaceutical products, Medical and dental services, Hospital services, Telecommunication services, Accident and health insurance services, and Administrative services of the government. Again, to derive the production tax rate for all other industries in the TSA set we use similar formulae to those applied in deriving Air and Water Transport production tax. For example, Chemical is mapped to Pharmaceutical, Communication to Telecommunication Service, and Government Defence Services to Administrative Services of the Government. To ease the comparison of production tax rates after the mapping, Table A.4 shows tourism payroll tax rates by states and by type of industry as a result of the mapping in the previous step. The same steps are applied to obtain tourism property taxes, FBT, and other federal production taxes.
Table A.4: Tourism Payroll Tax Rates by State and by Type of Industry, 2003/04, %
NSW VIC QLD SA WA TAS NT ACT
Tourism characteristic industries
Travel agency and tour operator services 1.306 0.985 0.760 0.819 0.951 0.866 0.622 0.559
Taxi transport 0.134 0.074 0.109 0.138 0.166 0.012 0.000 0.090
Air and water transport 0.128 0.077 0.100 0.142 0.151 0.068 0.083 0.083
Motor vehicle hiring 1.152 0.941 0.894 1.219 1.094 1.294 0.971 0.770
STATE AND FEDERAL TAXES ON TOURISM IN AUSTRALIA
31
NSW VIC QLD SA WA TAS NT ACT
Accommodation 0.845 0.726 0.477 0.619 0.726 0.578 0.386 0.509
Cafes, restaurants and food outlets 0.845 0.726 0.477 0.619 0.726 0.578 0.386 0.509
Tourism connected industries
Clubs, pubs, taverns and bars 0.845 0.726 0.477 0.619 0.726 0.578 0.386 0.509
Other road transport 0.929 0.787 0.527 0.621 0.749 0.562 1.358 0.623
Rail transport 0.755 0.596 0.633 0.539 0.335 0.542 0.889 0.423
Food manufacturing 0.367 0.406 0.277 0.376 0.422 0.345 0.315 0.371
Beverage manufacturing 0.133 0.084 0.057 0.063 0.126 0.031 0.000 0.000
Transport equipment manufacturing 0.777 0.754 0.478 0.613 0.722 0.511 0.413 0.372
Other manufacturing 0.373 0.591 0.308 0.464 0.432 0.353 0.107 0.500
Retail trade 1.306 0.985 0.760 0.819 0.951 0.866 0.622 0.559
Casinos and other gambling services 1.379 1.007 0.795 0.997 1.048 1.059 1.421 0.706
Libraries, museums and arts 1.379 1.007 0.795 0.997 1.048 1.059 1.421 0.706
Other entertainment services 1.379 1.007 0.795 0.997 1.048 1.059 1.421 0.706
Education 2.714 2.076 1.556 1.999 2.136 1.864 1.524 2.057
Ownership of dwellings 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
All other industries 1.282 1.005 0.856 1.200 1.177 1.097 0.912 0.817
South Australia production taxes The derivation of tourism production taxes for South Australia is shown in Table A.5.
Table A.5: Tourism Production taxes, South Australia, 2003/04, $m
Tourism Industries Property taxes FBT Payroll
taxes
Other Federal
taxes Total
Tourism characteristic industries
Travel agency and tour operator services 0.0 0.1 0.3 0.0 0.4
Taxi transport 0.1 0.1 0.1 0.0 0.2
Air and water transport 1.6 1.3 0.8 0.0 3.8
Motor vehicle hiring 0.1 0.0 0.2 0.0 0.4
Accommodation 3.3 2.0 6.7 0.0 12.0
Cafes, restaurants and food outlets 0.4 0.3 0.9 0.0 1.6
Total tourism characteristic industries 5.6 3.8 9.0 0.0 18.4
Tourism connected industries
Clubs, pubs, taverns and bars 0.2 0.1 0.4 0.0 0.8
Other road transport 2.0 0.4 1.3 0.0 3.6
Rail transport 0.1 0.1 0.2 0.0 0.3
Food manufacturing 0.5 0.2 0.7 0.0 1.4
Estimates for 2003/04
32
Tourism Industries Property taxes FBT Payroll
taxes
Other Federal
taxes Total
Beverage manufacturing 1.0 0.0 0.1 0.0 1.2
Transport equipment manufacturing 0.1 0.1 0.3 0.0 0.4
Other manufacturing 0.6 0.2 0.8 0.0 1.6
Retail trade 1.0 1.8 6.0 0.0 8.8
Casinos and other gambling services 0.0 0.0 0.0 0.0 0.1
Libraries, museums and arts 0.1 0.1 0.2 0.0 0.3
Other entertainment services 0.2 0.2 0.5 0.0 0.9
Education 0.3 0.2 0.7 0.0 1.2
Ownership of dwellings 9.7 0.0 0.0 0.0 9.7
Total tourism connected industries 15.7 3.3 11.1 0.0 30.1
All other industries 1.7 1.0 3.4 0.4 6.4
Total 22.9 8.1 23.5 0.4 54.9
Derivation of Taxes on Products Table A.6 is based on Table 8: Tourism Supply in ATSA 2003/0416 which decomposes tourism supply (purchaser’s prices). Tourism supply is split into tourism product output (basic prices), tourism margins, imports purchased in Australia by tourists, and net taxes on tourism products. Specific taxes such as those on gambling, fuel and alcoholic beverages are estimated from ABS data on these taxes, and state tourism shares of these taxes is assumed to be proportional to tourism’s share of total output. The GST on tourism is estimated as a residual. ATSA embodies estimates of local and long distance passenger transport obtained from the ABS. The difference between the sum of these taxes and subsidies and total taxes on products was assumed to be GST. ATSA embodies subsidies of $998m, allocated between local and long distance passenger transport. The former includes tourism’s share of subsidies to urban passenger transport. In allocating this subsidy between state and federal governments we have allocated $100m to the federal government and the remainder to state governments. This distribution is adapted from the exploratory estimates of assistance to tourism in passenger transport services and infrastructure referring from year 2000 to 200217 that the federal government subsidised between 6% and 7% of the total subsidy of passenger transport services and infrastructure.
16 Australian Bureau of Statistics 2007 17 Department of Communications, Information technology and the Arts 2004
STATE AND FEDERAL TAXES ON TOURISM IN AUSTRALIA
33
Table A.6: Tourism Supply, by Type of Product, $m
Imports GST Taxes Other tax Subsidy Total
Basic + Margin
Fuel Alcohol Gambling
Travel agency and tour operator services
2183 0 0 0 0 0 0 0 2183
Taxi fares 558 0 14 0 0 0 0 0 572
Long distance passenger transportation
12831 0 845 0 0 0 0 -826 12850
Motor vehicle hire and lease
915 8 80 0 0 0 0 0 1003
Accommodation services
7024 0 298 0 0 0 0 0 7322
Takeaway and restaurant meals
10506 0 756 0 0 0 0 0 11262
Shopping (including gifts and souvenirs)
7932 3081 912 0 0 0 88 0 12013
Local area passenger transportation
577 0 38 0 0 0 0 -172 443
Repair and maintenance of motor vehicles
386 20 27 0 0 0 0 0 433
Fuel (petrol, diesel) 3002 119 439 1268 0 0 0 0 4828
Food products 5708 386 86 0 0 0 7 0 6187
Alcoholic beverages and other beverages
2638 136 322 0 446 0 0 0 3542
Motor vehicles, caravans, boats, etc.
789 350 47 0 0 0 11 0 1197
Recreational, cultural and sports services
2582 3 197 0 0 0 0 0 2782
Gambling and betting services
689 0 90 0 0 217 0 0 996
Education 2307 67 0 0 0 0 0 0 2374
Actual and imputed rent on holiday houses
2091 0 0 0 0 0 0 0 2091
Other tourism goods and services
2924 91 338 0 0 0 368 0 3721
Total 65642 4261 4490 1268 446 217 473 -998 75799 Tourism’s share of total output by state is used to distribute national taxes on products. Other taxes include duties on Shopping (including gifts and souvenirs), Food products, and Motor vehicle, caravan, boats, etc. Taxes on products in Table A.6 are distributed by state according to the share of consumption by states. Using South Australia taxes on products as an example, we obtain taxes on product of South Australia as in Table A.7.
Estimates for 2003/04
34
Table A.7: Taxes on Products, South Australia, $m
GST Taxes Other taxes Subsidy Total
Fuel Alcohol Gambling
Travel agency and tour operator services
0 0 0 0 0 0 0
Taxi fares 0.9 0 0 0 0 0 0.9
Long distance passenger transportation 43.8 0 0 0 0 -27.9 16
Motor vehicle hire and lease 6.1 0 0 0 0 0 6.1
Accommodation services 16.7 0 0 0 0 0 16.7
Takeaway and restaurant meals 47.7 0 0 0 0 0 47.7
Shopping (including gifts and souvenirs)
57.8 0 0 0 5.6 0 63.4
Local area passenger transportation 1.8 0 0 0 0 -7.4 -5.6
Repair and maintenance of motor vehicles
2.2 0 0 0 0 0 2.2
Fuel (petrol, diesel) 34.8 100 0 0 0 0 135.2
Food products 5.2 0 0 0 0.4 0 5.7
Alcoholic beverages and other beverages
19.8 0 27.4 0 0 0 47.2
Motor vehicles, caravans, boats, etc. 3.4 0 0 0 0.8 0 4.2
Recreational, cultural and sports services
8.1 0 0 0 0 0 8.1
Gambling and betting services 3.6 0 0 8.7 0 0 12.4
Education 0 0 0 0 0 0 0
Actual and imputed rent on holiday houses
0 0 0 0 0 0 0
Other tourism goods and services 24.7 0 0 0 26.9 0 51.6
Total 277 100 27.4 8.7 33.6 -35.3 411.6
Because GST revenues are redistributed back to the states and territories by the federal government on the basis of a nationally based redistribution formula, which is not related to tourism GST collected in the state or territory concerned, separate formulae have been used to calculate the state/territory revenue outcomes from GST redistribution. This is based on the Final Budget Outcome formula. The tourism GST distribution in this report is based upon the share of distribution of total GST revenue as in Table A.8. South Australia for example receives 9.5% of total GST and is therefore assumed to receive 9.5% of national tourism GST revenue.
Table A.8: GST Revenue Provision to the States and Territories, Final Budget Outcome 2003/04
NSW VIC QLD SA WA TAS NT ACT AUS
Distribution of GST revenue, $m
9667.1 6961.0 6552.8 3146.4 3157.9 1394.5 1680.9 658.1 33218.7
Share (%) 29.1 21.0 19.7 9.5 9.5 4.2 5.1 2.0 100.0
STATE AND FEDERAL TAXES ON TOURISM IN AUSTRALIA
35
APPENDIX B: DEFINITIONS OF SELECTED TERMS USED IN THIS REPORT*
Tourism Output
Tourism output is measured at ‘basic prices’, that is before any taxes on tourism product are added (or any subsidies on tourism products are deducted). Output consists of those goods and services that are produced within an establishment that become available for use outside that establishment, plus any goods and services produced for own final use.
Tourism Consumption
Tourism consumption measures the total consumption made by a visitor or on behalf of a visitor for and during his/her trip and stay at the destination at ‘purchasers’ price’. Consumption consists of output (including production taxes), imports, margins, and net taxes on tourism products.
Tourism Gross Value Added (TGVA)
Tourism GVA measures the value of tourism gross output at basic prices by all industries which supply tourism products, less the value of the inputs used in producing these tourism products. TGVA is directly comparable with the value added of 'conventional' industries such as mining and manufacturing and should also be used for comparisons across countries or regions.
Tourism Gross Domestic Product (TGDP) or Tourism Gross State Product (TGSP)
Tourism GDP is TGVA plus taxes paid less subsidies received on tourism related products as these are reflected in prices that visitors actually pay. Taxes on tourism products include the Goods and Services Tax (GST), wholesale taxes and excise duties on goods supplied to visitors. TGDP and TGSP will generally have a higher value than tourism value added. TGDP and TGSP are a satellite account construct to enable a direct comparison with the most widely recognised national accounting aggregates, GDP at the national level, and GSP at the state or territory level. While it can be useful in this context, TGVA is normally used when making comparisons with other industries or between countries or regions. * These definitions are based on the Explanatory Notes to ABS TSA, Australian National Account, 5249.0, 2005/06, with adjustment where necessary to reflect the state/territory focus of this report.
Estimates for 2003/04
36
REFERENCES Adams, P.D. (2006). MMRF Database 2003-2004, Centre of Policy Studies, Monash University, Australia. Adams, P.D., J.M. Horridge and B.R. Parmenter (2000). ‘MMRF-GREEN: Dynamic, Multi-Sectoral, Multi-
Regional Model of Australia’, Preliminary Working Paper No. OP-94, Centre of Policy Studies, Monash University, Melbourne, available at http://www.monash.edu.au/policy/ftp/workpapr/op-94.pdf accessed 20/09/07.
Australian Bureau of Statistics (2007). Tourism Satellite Account, Australian National Accounts 1997-98 to 2005/06, (Cat. No. 5249.0), Canberra, www.abs.gov.au.
Department of Communications, Information Technology and the Arts (2004). Final Budget Outcome 2003/04, Canberra, www.budget.gov.au.
Productivity Commission (2005). Assistance to Tourism: Exploratory Estimates, Commission Research Paper, Canberra, April.
Sustainable Tourism Cooperative Research Centre (2007). Tourism Satellite Account Victoria 2003/04 (October 2007) (and related reports for other states and territories), Gold Coast, Queensland.
STATE AND FEDERAL TAXES ON TOURISM IN AUSTRALIA
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LIST OF ABBREVIATIONS ABS Australian Bureau of Statistics
ACT Australian Capital Territory
ANZSIC Australian and New Zealand Standard Industrial Classification
ATSA Australian Tourism Satellite Account
AUS Australia
CoPS Centre of Policy Studies, Monash University
CTEPR STCRC Centre for Tourism Economics and Policy Research
FBT Fringe Benefits Tax
GDP Gross Domestic Product
GSP Gross State Product
GST Goods and Services Tax
GVA Gross Value Added
NSW New South Wales
NT Northern Territory
QLD Queensland
SA South Australia
STCRC Sustainable Tourism Cooperative Research Centre
TAS Tasmania
TCF Textile Clothing Footwear
TSA Tourism Satellite Account
TGDP Tourism Gross Domestic Product
TGSP Tourism Gross State Product
TGVA Tourism Gross Value Added
TSA Tourism Satellite Account
VIC Victoria
WA Western Australia
CRC for Sustainable Tourism Pty Ltd ABN 53 077 407 286
Gold Coast Campus Griffith University QLD 4222 Australia
Telephone: +61 7 5552 8172 Facsimile: +61 7 5552 8171
Website: www.crctourism.com.au
Bookshop: www.crctourism.com.au/bookshop
Email: [email protected]
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