Saturday, April 11, 2009

How did the Australian Government raise revenue for the first 100 years without an income tax?

The first national income tax in Austraila was in about 1880, how did the government get revenue before this?


selling hashish.

We just raised revenue from other taxes, starting with a tax on booze:

When our first Governor, Governor Phillip, arrived in New South Wales in 1788, he had a Royal Instruction that gave him power to impose taxation if the colony needed it.

The first taxes in Australia were raised to help pay for the completion of Sydney's first gaol and provide for the orphans of the colony. Import duties were put on spirits, wine and beer and later on luxury goods.

After 1824 the Government of New South Wales raised extra revenue from customs and excise duties. These were the most important sources of money for the colony's Government throughout the 19th century. Taxes were raised on spirits, beer, tobacco, cigars and cigarettes.

These taxes would vary between States, or colonies as they were then called. Even today, taxes still differ according to which State you live in.

Colonial governments also raised money from fees on wills and stamp duty, which is a tax imposed on certain kinds of documents.

In 1880 the Colony of Tasmania imposed a tax on income received from the profits of public companies. Four years later, a general tax on income was introduced in South Australia, and in 1895 income tax was introduced in New South Wales at the rate of six pence in the pound.

By 1900 all colonies were collecting income tax, often by different methods and at different rates. It wasn't until 1915 that the Fisher Commonwealth Government introduced an act for income tax to be collected by the Commonwealth, although States were still also collecting some income tax.

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