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ACT has lowest taxation, says Stanhope

By Kerces 11 May 2006 3

In a press release that’s really all about ridiculing shadow treasurer Richard Mulchay, the Chief minister lets slip that ACT is in fact the lowest taxing state or territory in Australia.

It’s a bit numbersy and boring, but as far as I can make out, the combined state and local taxes in the ACT are just over one-tenth lower than the national average. Now correct me if I’m wrong, but could this be because we actually don’t have a local level government to level taxes?

Mr Stanhope also pointed out that the Federal Government is the highest-taxing level of government. Again, feel free to jump in, but don’t they have the largest population to tax? And the largest budget and jurisdiction, hence the largest need for income?

Do have a read of the release and let me know if it is comprehensible — and then please explain it in ordinary, monosyllabic words cos I sure as anything am not getting the point here.

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ACT has lowest taxation, says Stanhope
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Stella 2:26 pm 12 May 06

ACT taxes should be lower, because apart from spending money on crap “art projects” and public housing, the govt doesn’t seem to provide very good services to the people of the ACT.
How about some decent sporting grounds and a few rubbish bins around to help stop the place looking like a tip?

caf 10:03 am 12 May 06

It’s comparing Federal government take as a proportion of GDP with the total for all states and territories so that’s fair enough. But really comparing the Federal government with the States & Territories is kind of pointless because their taxing powers and responsibilities are vastly different.

Since our state-level government also has to perform the functions of local government, I think it’s also fair enough to compare our “combined state and local taxes” with that in other states/territories. I reckon the reason it’s one tenth lower could have something to do with the fact that as a relatively centralised jurisdiction we should be able to provide services more efficiently.

Thumper 8:13 am 12 May 06

Very good summary K.

Statistics and statistics….

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