Australia will remain one of the lowest-taxed countries in the Western world.
FEW Australians are aware that we have one of the three smallest governments in the Western world. We complain endlessly that our governments tax too much and spend too much – but that is not the way we appear in international comparisons.
The International Monetary Fund estimates that, in 2012, Australia’s governments, state and federal, will raise a bit over one-third of our GDP, 34.5 per cent, and spend 36.3 per cent. Of the 34 advanced economies, our revenue is the ninth lowest, our spending the seventh lowest.