Budget and Taxation in Australia
Tax is the economic obligation a member of society has towards their economy. In Australia, various governments and authorities levy different types of taxes. They include personal income taxes which are imposed on individuals at a federal level and are charged on the person’s source of income, capital gains tax which is levied on the gains made from the disposal or sale or sale of any asset, as well as property taxes which are imposed on land owners by local authorities within their various jurisdictions. Corporate taxes are charged by the federal government on companies and corporations on their profits. Departure tax is a form of excise tax imposed on all passengers departing on international flights or maritime expeditions with the luxury car tax being levied on establishments that import and sell luxury cars (Chrisholm, John and Michael 127).
Other taxes include superannuation, corporate, and goods and services taxes chargeable on business establishments (Chrisholm, John and Michael 127). Taxes are also charged on inheritances, properties and payroll entries. The Excise tax or duty is levied by the Australian government on inelastic goods such as alcohol, cigarettes and petrol. Income tax, on the other hand, is charged by the federal government from its citizen’s primary sources of revenue (Alesina and Roberto 13-36).
A budget deficit is achieved when the revenue collected by an economy fails to satisfy its expenditure (Murphy 209). It is a fairly common occurrence in today’s society. A budget surplus is when the revenue collected surpasses the economic engagements of the country. A balanced budget features a situation where a country’s collected revenue can sufficiently satisfy its budgetary obligations (Alesina and Roberto 13-36). Governments with balanced budgets often face an awfully challenging task when attempting to increase their spending. This is because of the ultimate implication of misbalancing the intricate budget situation that almost certainly occurs (Alesina and Roberto 13-36; Murphy 209). However, they can cushion themselves from this occurrence by increasing taxation on commodities that would seamlessly regenerate the capital value they are interested in spending.
Alesina, Alberto F., and Roberto Perotti. «Budget deficits and budget institutions.» Fiscal institutions and fiscal performance. University of Chicago Press, 1999. 13-36.
Chrisholm, Andrew, John Freebairn, and Michael Porter. «Goods and Services Tax for Australia, A.» Austl. Tax F. 7 (1990): 127.
Murphy, Kristina. «Examination of Taxpayers’ Attitudes towards the Australian Tax System: Findings from a Survey of Tax Scheme Investors, An.» Austl. Tax F. 18 (2003): 209.