Australia's Future Tax System

Architecture of Australia's tax and transfer system

2.7 Many Australian transfers

There are around 40 Australian government transfers. As is the case with taxes, there is some ambiguity as to what constitutes a separate payment.

Many other types of transfers are delivered by the States, particularly as non‑tax concessions. See Box 2.8 for a description of what is included as a transfer.

Cash transfers cost the Australian government around $70 billion in 2006‑07, equivalent to 6.8 per cent of GDP. The States make very limited use of direct payments, relying mainly on indirect transfers, such as services and concessions.