Funding the budget

If the Debit Tax seems to confiscate so little money from individuals - then how will the Federal Budget be funded? To answer this question - let's reference Reserve Bank and Federal Government documents.

From the Federal Government

2012-expensesFrom the Federal Government Budget for 2011-12, we will use 4 figures:

  • Actual total government expenses of $377 739 million.
  • Actual income of $25 480 million from Excise Duty.
  • Actual income of $7 105 million from Customs Duty.
  • Actual income of $21 330 million from Other Sources.

 

 

 

From the Reserve Bank

From the RBA - 4 numbers are calculated from 3 spreadsheets. Each number is calculated by adding the monthly figures from July 2011 to June 2012. For example, the Real-time Gross Settlement value is calculated here. All of the results are:

  • Actual annual Cheque Payments of $1 242 billion - from here (column G).
  • Actual annual Direct Entry Payments of $13 264.5 billion - from here (column M).
  • Actual annual Real-time Gross Settlement payments of $41 320 billion - from here (column M).
  • Actual annual ATM withdrawals of $150.9 billion - from here (column E).

Adding up these 4 numbers gives a total of $55 976.5 billion.

 

 

Putting the numbers together

Now let's put all these numbers together into the "ASP Federal Budget 2011-12". Remember that with the ASP, the federal government will have 2 primary sources of revenue:

  • The Debit Tax (at a flat rate of 1%).
  • Customs and Excise duties.

Using the figures from the federal government and the numbers we calculated from the RBA spreadsheets - we sum them up to give us the following:

  • Debit Tax revenue (1% of $55 976.5 billion) = $559.7 billion
  • Actual revenue from Excise Duty = $25.4 billion
  • Actual revenue from Customs Duty = $7.1 billion
  • Actual revenue from Other Sources = $21.3 billion

The actual calculations are given below. The budget displays that the Debit Tax will generate a healthy surplus of $235.9 billion - over and above the actual government expenditure of $377.7 billion.

2012-asp-budget