Australian Fiscal Structure With Regards To Efficiency And Equity

7 Pages 1689 Words

(Abelson, 2003; James, Nobes, 1992; Ladd, 1999). Government responsibilities in Australia are shared across three levels of government: the federal (Commonwealth) government, the state and territory governments, and the local governments. The Commonwealth government has primary responsibility for: security of the nations, universities, public health, social security, and the stability and growth of the economy. The Commonwealth government levy income taxes on Australian households, whereas the state and territories rely on indirect taxes, duties and other transaction charges. State and territory government’s fund works such as the prison system, and with aid from the Commonwealth government, highways and other public works, and are responsible for things such as primary and secondary education, police, and fire brigades, among others. Local governments account for less than four per cent of public sector revenue and less than five per cent of expenditure which suggests that they are largely self-sufficient. Their expenditure includes works such as infrastructure, public health, environmental management, local economic development, planning and development, waste disposal, recreation, and culture (Abelson, 2003; Ladd, 1999; Swann, McEachern, 2001; At the Crossroads – a discussion paper: Inquiry into Local Government and Cost Shifting, February, 2003).
The Senate Economics References Committe...