Reserve Bank figures
The debit tax calculations are based on figures obtained from the Reserve Bank of Australia. The tables that are used are:
- C1 – credit and charge card statistics
- C4 – ATM cash withdrawals
- C5 – debit card statistics
- C6 – cheques and direct entry payments
- C7 – real time gross settlement statistics
The first 4 tables (i.e. C1, C4, C5 and C6) contain data from low value payments, while the last table (i.e. C7) contains data from high value payments. Each will be examined separately.
Low value payments
Below are the debit tax calculations based on the low value payments. Note that:
- Cash withdrawals are considered to be “payments” – since cash is generally used to make payments for goods and services.
- Table C6 “Cheques and Direct entry payments” contains 3 separate forms of payment.
The revenue from a debit tax on low value payments covers 38% of actual government expenses of $447 billion.
High value payments
The numbers below are based on the table C7 “Real Time Gross Settlement statistics”. Please note:
- The RBA figures are given as a daily average, and need to be converted to a monthly average.
- The RTGS system settles all transactions initiated in the RITS, SWIFT and Austraclear systems.
- The RTGS system does process some low value payments (as given in column P). Consequently the figures from column P are removed from the calculations.
- Some of the high value payments do include loans – which should not be included in the debit tax calculations. Unfortunately the exact value of loan payments are unavailable.
The revenue from a debit tax on high value payments covers 90% of actual government expenses of $447 billion.The next page provides a summary of all revenue under the debit tax system.