Foundations of Taxation Law

Like other developed countries around the world, Australia imposes a broad mix of taxes on labour, capital and consumption. The Australian tax system is, however, complicated by the fact that Australia is a federation that includes six states and two mainland territories which all have their own legislatures that impose their own taxes. In addition, Australia also has more than 500 local government authorities which levy their own council rates. In 2008, the Commonwealth Treasury’s discussion paper, Architecture of Australia’s Tax and Transfer System, identified at least 125 different taxes levied in Australia, with the 10 largest taxes accounting for more than 90% of all government revenue. Of the 125 taxes, 99 were levied by the Commonwealth Government, 25 by the state and territory governments, and 1 by local government. The Treasury’s estimate of the number of taxes was based on equivalent state and territory taxes being counted as a single tax, even though they differed in terms of rates, thresholds and exemptions, and were paid to different authorities.