Australia's sustainable public finances
Australia is a low tax country. In 2003, (the latest year for which detailed information is available) Australia was the eighth lowest taxing of the developed countries. At 31.6 per cent of GDP, our taxes are well below the 36.3 per cent average of the 30 OECD countries.
Australia is also a low spending country — the second lowest of the 28 OECD countries for which information is available. Careful management of our spending has focused on the areas of highest priority. Australia's targeted social security arrangements, rather than universal
systems, keep us a low spend, low tax country.
The difference between spending and revenue (tax and non tax) gives a snapshot of a country's fiscal position. Australia's fiscal position has been placed on a sustainable footing, and now has greater flexibility to respond to future needs.
Australia is the 2nd lowest spending, 8th lowest taxing country
Australia is one of only nine OECD countries in 2005 with a balanced or surplus budget
5 2006‑07 Budget Overview