Taxation is spread between Australia's three levels of
government.
The Federal Government collects almost 80% of the tax paid in
Australia and is the only level of government that levies income
tax, its major form of revenue. In addition, it levies a Goods and
Services Tax (GST) and also levies tariffs on a number of imported
items.
State governments variously impose a large number of taxes.
Principal among these are land tax, payroll tax, stamp duty and
motor vehicle registration duty. Local governments also impose
taxes – chiefly, rates payable by landowners –
though these make up less than 5% of taxes levied on the private
sector.
There are a number of issue-specific reviews (for example, trust
taxation and transfer pricing) of the tax system currently
underway. Australia is also in the process of introducing a new
Minerals Resource Rent Tax as well as a new Carbon Pricing
Mechanism and Tax. As with all decisions, businesses need to
consider any proposed
