How is tax revenue spent?

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Tax revenue

Australians expect their governments to provide certain goods and services. Each of the three levels of government has responsibility for providing some of these goods and services. Governments pay for these from taxation revenue. Some of the services provided by the different levels of government are shown in the table.

Services provided by the three levels of Australian government

Level of government

Services provided

Australian Government

Social security and welfare, family payments

Defence

Health, ageing and community services

Education

Immigration

Trade

Postage and communications

Currency

Transport

Subsidies and grants to state or territory and local governments

Administration costs to run federal government departments

State or territory

Health

Education

Water and electricity

Transport, roads and communications

Public order and safety − police

The court system

Art, culture and sports

Environment

Administration costs to run state or territory government departments

Subsidies and grants to local government

Local

Family and community services

Aged and disability services

Recreation and culture

Waste management

Street and traffic management

Local infrastructure services

Business and economic services

Roads and bridges

Administration costs for the local council

  • Fact 17

    The opportunity to pay income tax in instalments, rather than once per year, was introduced in 1941.

Capital growth

Occurs when the value of an investment or asset increases over time.

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