1                This section summarises the assessment results for each user charges category for the GST relativities.

2                Table 1 shows the average and actual revenues per capita for each user charges category for the five years of the assessment period. 

3                Table 2 shows average and assessed revenues per capita for each user charges category for the five years of the assessment period.  Assessed revenues reflect the effect of advantages and/or disadvantages in raising revenue — revenue raising disabilities.

4                Table 3 shows revenue raising capacity ratios for each user charges category.  Revenue raising capacity ratios compare each State's capacity to raise revenue given its revenue raising disabilities.  Revenue raising capacity ratios are the ratio of a State's assessed revenue per capita to the average per capita.  Equivalently, they are the ratio of a State's revenue base per capita to the Australian revenue base per capita.  Table 3 also shows the percentage contribution of the average revenue for each user charges category to total own-source revenue, as a guide to the importance of the revenue raising capacity ratios for that category in shaping the overall per capita relativities. 

5                Table 4 shows impliedrevenue raising effort ratios for user charges.  They are the ratio of a State's actual revenue to its assessed revenue.  Actual revenues reflect both revenue raising disabilities and differences in policies.  Abnormal receipts, such as special dividends required of State-owned enterprises, affect the apparent effort of the State that receives them and reduce the apparent effort of other States (because they increase average revenue and assessed revenues).

6                Following the summary tables are the assessment results for each user charges factor.  The details include:

·                a description of the category;

·                a summary of the 2007 Update assessment method including the data used and the calculation of the factors;

·                the results for 2005‑06 and comments on them;

·                the contribution of the assessment to grant shares;

·                the changes to the assessment since the 2006 Update and their effect on the distribution of GST revenue and Health Care Grants[1]; and

·                the results for all years of the assessment period.

7                The analysis of effects of the assessment on GST revenue distribution uses an illustrative GST revenue pool.  The size of the illustrative pool changes from one inquiry to the next.  To ensure that only the effects of changes in Commission assessments are shown, the analysis measures all redistribution effects using the 2005‑06 pool of GST revenue and health care grants of $45 641.5 million from the Commonwealth of Australia's Mid‑Year and Economic and Fiscal Outlook. 

Table 1            Actual and average(a) user charges per capita — GST relativities

Table 1            Actual and average(a) user charges per capita — GST relativities (continued)

(a)        Population weighted average of States.

(b)        Excluding Housing User Charges which were offset against the Housing expense assessment. 

Table 2            Average^(a) and assessed user charges per capita — GST relativities

Table 2            Average^(a) and assessed user charges per capita — GST relativities (continued)

(a)        Population weighted average of States.

(b)        Excluding Housing User Charges which were offset against the Housing expense assessment. 

Table 3       Capacity to raise revenue ratio^(a) — GST relativities

Table 3       Capacity to raise revenue ratio^(a) — GST relativities (continued)

8               

(a)        The ratio of standardised user charges per capital to standard user charges per capita.

(b)        Excluding Housing User Charges which were offset against the Housing expense assessment.

Table 4            Revenue raising effort ratio^(a)—GST relativities

Table 4            Revenue raising effort ratio^(a)—GST relativities (continued)

(a)        The ratio of actual user charges per capita to standardised user charges per capita.

(b)        Excluding Housing User Charges which were offset against the Housing expense assessment. 

 

This chapter was prepared by the Transport section of the Commonwealth Grants Commission.  If you have any questions about its content please contact Stephen Tregea-Collett on (02) 6229 8833 or stephen.tregea-collett@cgc.gov.au.

 

 

          Date: 23/02/06