The total taxation revenue collected in Australia declined in 2019-20 due to the negative impact of the coronavirus pandemic. The total tax collection fell by A$8.0 billion or 1.4% on the previous year, according to the data by the Australian Bureau of Statistics (ABS).
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The total taxation revenue collected in 2019-20 stood at A$552.0 billion, or 27.8% of the gross domestic product (GDP). In 2018-19, the total taxation revenue as a percentage of GDP was 27.8%.
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The taxation revenue was negatively impacted across all levels of the government due to the coronavirus pandemic. The pandemic had led to changes in the taxation policy and the economic activity.
A range of coronavirus tax relief polices were implemented by the state and local governments such as payroll tax relief and land tax relief.
What were the main contributors to the taxation fall?
- The company’s income tax was down 7.5%.
- The income tax paid by superannuation funds was down 39.3%.
- Goods and Services Tax (GST) was down 1.7%.
- Personal income tax was down 0.2%.
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Meanwhile, the International Monetary Fund (IMF) recently updated its global economic growth forecast for 2021. The global body also said that the Australian economy would report higher growth than what was precited for this year. The IMF has increased Australia’s expected GDP growth to 4.5%. It means that Australia could rebound from the coronavirus-affected economic downturn in 2021. In 2020, the Australian GDP shrunk by 2.4%. In its recent update, the IMF has projected the global growth of 6% in 2021.