The Tax Expenditures Statement (TES) supplements other Government publications by providing information on Australian Government tax expenditures. The publication of information on the Australian Government’s tax expenditures is a requirement under the Charter of Budget Honesty Act 1998.
Revenue estimates published in budget papers and the taxation statistics made available by the Australian Taxation Office focus on incomes that are subject to tax and the revenue the Government collects.
The Tax Expenditures Statement (TES) complements this information by primarily focusing on revenue the Government doesn’t collect: it lists provisions in the tax system that provide a concessional (or punitive) treatment of particular taxpayers or forms of economic activity and, where possible, estimates the loss (or gain) in revenue as a result. It is intended to facilitate scrutiny of tax expenditures by Parliament and parliamentary committees, the media and the general public. Transparent reporting of tax expenditures also helps inform debate on the efficiency and equity of the tax system.