One never looks at revenue from a nominal point of view. It always rises unless there is a long period of deflation.
You have to look at revenue as a percentage of GDP otherwise you have no understanding of how strong or weak it is.
We see from MYEFO that tax as a % of GDP was 23.7% in the last financial year of the 'Howard' government.
Once the GFC hit Australia tax as a % of GDP has been:
- 22.5% (Hockey)
For a person to say revenue hasn't been the problem they are either a complete idiot or a transparent liar.
The GFC hit the world in September 2008 via Lehman Bros. Before that we simply had a credit crunch which the RBA for one thought so much of they raised rates to combat increasing inflation.
A person e-mailed me to say I forgot to include the whys and wherefores of the structural budget deficit.
The PBO said this "government receipts and payments. From the SBB peak in 2002-03 to its trough in 2011-12, the structural level of receipts excluding GST fell by around 5 percentage points of GDP. The structural level of government payments excluding GST over this period rose by around 1 percentage point of GDP and hence the SBB fell into deficit. Over the period 2011-12 to 2016-17 the structural level of receipts is expected to increase by approximately 1¾ percentage points of GDP while the structural level of payments is expected to decline by around 1 percentage point of GDP leading to the expected reduction in the structural deficit over the period of the 2013-14 budget and forward estimates years.