Where do the Federal, State and Local Governments get their money from? Thank you.
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 talking to the media about the Budget.
Penny Bradfield/DPS Auspic
A man in a suit is being interviewed by a man with a handheld microphone.They are surrounded by people with cameras and boom mics. They stand between lines of tables covered with papers and laptops.
Permission should be sought from DPS AUSPIC for third-party or commercial uses of this image. To contact DPS AUSPIC email: firstname.lastname@example.org or phone: 02 6277 3342.