One Third of Taxes in Australia to Fund Welfare System
May 10, 2012 Taxation in Australia
CANBERRA – Almost AUD 100 from the tax payments made every week by an average Australian will now go directly to funding national welfare programs to subsidies low income families.
On May 10th the Tax Institute of Australia released a new report, which details the government’s use of taxpayer money. The analysis comes only a day after the government of Australia released the national budget plan, which has already been labelled by the opposition parties as a “handout budget”, as, according to the opinions of some political and economic experts, it significantly increased welfare payments for low and middle income families while dropping the long promised cuts to corporate tax rates.
According to the Tax Institute’s research, a single Australian taxpayer who earns the median wage will now pay approximately AUD 14 557 each year in taxes. Approximately AUD 5 093 of the taxes collected from an average employed Australian every year, or nearly AUD 98 per week, will go to subsidizing low income families, beneficiaries and retirees.
The funding of the welfare system is currently the most significant expenditure faced by the Australian government, accounting for 35 percent of total annual tax revenue.
The costs of funding the healthcare system are the second largest expense for the Australian government, estimated to require 16.2 percent of all the taxes collected in the country during one fiscal year.
Payments to state and territorial governments are the third largest expenditure, at 13.1 percent, followed by spending on education and defense at 7.9 percent and 5.7 percent respectively.
Photo by Necromundo