The soft company tax revenue suggests the shortfall will be worse than indicated by monthly Finance Department figures and means the 2011-12 budget deficit is increasingly likely to rise from a forecast.
Since the beginning of the Global Financial Crisis (GFC), tax receipts have fallen significantly. The tax to GDP ratio fell 4.2 percentage points to 20.1 per cent in 2010-11, compared to the all-time peak of 24.2 per cent under the former government in 2004-05 and 2005-06 (see Chart 2).