How is tax revenue spent?

Question 1 of 1

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


Health, ageing and community services




Postage and communications



Subsidies and grants to state or territory and local governments

Administration costs to run federal government departments

State or territory



Water and electricity

Transport, roads and communications

Public order and safety − police

The court system

Art, culture and sports


Administration costs to run state or territory government departments

Subsidies and grants to local government


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 26

    The introduction of electronic lodgement of tax forms in the late 1980s not only reduced the time it took to send out returns from ten weeks to two weeks but had a significant impact on the incidence of repetitive strain injury among data processors at the ATO.


An association of persons who carry on business together.

read more glossary terms