Where do the Federal, State and Local Governments get their money from?
Thank you for the great question! The Australian Constitution gives the Australian Government the power to raise money through taxation. These taxes include:
- The Goods and Services Tax (GST)
- Income tax
- Other taxes, such as company tax
- Custom charges (taxes on goods entering or leaving the country)
The state and territory governments raise money from:
- Duties, charges and taxes, such as stamp duty on the purchase of a house
- Grants from the federal government
Section 96 of the Australian Constitution allows the federal government to grant money to the states. It also allows the federal government to tell the states how this money is to be spent.
Local governments raise money from:
- Rates, and duties and charges, such fees for pet registration
- Grants from state and federal governments
The Treasurer and Minister for Finance talking to the media about the Budget.
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