10 U2007 Other User Charges NE

Other User Charges NEC — Assessment Results

1 This working paper describes the expenses assessment for Other User Charges nec and provides information on its impact on GST revenue distribution for the 2007 Update. The development of the assessment method is discussed in Volume 3 of the 2004 Review Working Papers.

Description of the category

2 The User Charges nec category comprised all user charges other than those which:

· were differentially assessed. These were Hospital Patient Fees, Law and Order Fees and Fines, Property Titles, Housing user charges, Public Safety user charges, National Parks and Wildlife Services user charges, and General Public Service user charges;

· were too small to warrant separate identification. In particular, those associated with Non‑government Primary School Education, Non‑government Secondary School Education, Higher Education, Transport of Rural School Children, and Services to Indigenous Communities. These user charges were netted off the expenses for the relevant category and their assessment was made on a net basis; and

· did not conceptually exist. There were no user charges associated with the First Home Owners Scheme, Administration of Justice, Electricity and Gas, Water Sanitation and Protection of the Environment, Non-urban Transport, Petroleum Products Subsidies, Alcohol Products Subsidies, Superannuation, GST Administration, Debt Charges and Depreciation.

3 Table 1 shows average expenses for the last six financial years. In 2005‑06, the category average expense of $274.81 per capita represented 50.66 per cent of total average user charges.

Table 1 Other User Charges nec, average expenses, 2000‑01 to 2005‑06

Assessment Method

Description of the assessment

4 Other User Charges nec for the 2007 Update were assessed on an equal per capita basis. The assessment method for the 2007 Update is the same as that used for the 2006 Update.

Assessment structure

5 Table 2 summarises the assessment structure for 2007 Update.

Table 2 Other User Charges nec, assessment structure, 2007 Update, 2005‑06

Component	Component Weight	Factors	Basis of calculation
	%
User charges	100	None	EPC

Calculating the category factor

6 This category was assessed on an equal per capita (EPC) basis. The category factor is one for each State.

Results for 2005‑06

7 Table 3 shows actual, average and assessed user charges per capita and the assessed revenue raising capacity ratios for 2005‑06.

Table 3 Other User Charges nec, assessment results, 2005‑06

(a) The revenue raising capacity ratio is the ratio of assessed user charges per capita to average user charges per capita.

8 Attachment A provides information on the actual and assessed user charges for each State for all years of the 2007 Update.

9 Figure 1 illustrates the actual, average and assessed user charges for Other User Charges nec for 2005‑06.

Figure 1 Other User Charges nec, revenue per capita - assessed, actual and average, 2005‑06

Contribution to GST revenue distribution

10 Categories assessed EPC have no impact on the distribution of GST revenue and health care grants (hereafter described as GST revenue).

Changes since the 2006 Update

Effect of assessment on the distribution of GST revenue

11 Other User Charges nec was assessed EPC and therefore had no impact on the distribution of GST revenue.

Table 4 Other User Charges nec, actual user charges and revenue raising capacity ratios, 2000‑01 and 2005‑06

Note: The revenue raising capacity ratio is the ratio of assessed user charges per capita to average user charges per capita.

This chapter was prepared by the Expense — Transport section of the Commonwealth Grants Commission. If you have any questions about its content please contact Stephen Tregea-Collett on (02) 6229 8838 or stephen.tregea-collett@cgc.gov.au.

Date: 16 February 2007

ATTACHMENT A — Other User Charges NEC By Category

12 Table A‑1 sets out the total other user charges raised by each State in each year of the update.

Table A‑1 Total Other User Charges nec, 2007 Update

14 Table A‑2 presents the per capita amount raised by State in each year of the update.

Table A‑2 Total Other User Charges nec per capita, 2007 Update

16 Tables 3 to 7 break down the total amounts by category by year.

Table A‑3 Other User Charges nec, 2001‑02

Note: A separate user charges assessment was not made for: Non-government Primary School Education, Non-government Secondary School Education, Higher Education, Transport of Rural School Children, Services to Indigenous Communities First Home Owners Scheme, Administration of Justice, Electricity and Gas, Water Sanitation and Protection of the Environment, Non-urban Transport, Petroleum Products Subsidies, Alcohol Products Subsidies, Superannuation, GST Administration Costs, Debt Charges or Depreciation.

Table A‑4 Other User Charges nec, 2002‑03