Section 9: Taxing goods and services
This section examines the current Australian system of taxing goods and services.
- Historically, taxes on goods and services raised revenue relatively simply from narrow bases that are easy to tax, with a shift over time toward more efficient broad‑based taxation.
- Some taxes on specific goods and services may reflect a range of non‑tax policy objectives, such as reinforcing social policy objectives, or providing assistance to domestic industry.
- Specific taxes can also be levied to help correct market failures. For example, an effectively targeted tax creates incentives in the market for individuals to respond to environmental concerns.
- Improving technology is making it administratively feasible to replace some taxes with more direct user charges.
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