20 Feb 2009

Tax revenue $1.1bn lower than forecast - Treasury

11:18 am on 20 February 2009

The latest statements from Treasury on the state of the government's books show income from taxation is $1.1 billion less than forecast.

Treasury has released financial statements for the six months to December last year.

It says the corporate tax take is nearly 12%, or $564 million, lower than forecast.

Treasury expects this corporate tax shortfall will persist through the next few years, as companies' profits drop as a result of the global downturn.

GST payments are also down, reflecting a more rapid drop in consumption than expected.

The government's operating balance, which includes investment gains and losses, is in deficit by $6.2 billion.

The pre-election forecast in October had predicted a surplus.