The highest source of fiscal financing for any government comes from tax collected on trading activities within the country. If you are an Australian or you do business that has some business touching on Australian economy you will under the obligation to pay tax.
Tax to the government is very important in that it helps the Federal government and the regional state governments to run their business. The money you pay for tax helps the government to plan the funding for infrastructural projects among other project of ensuring that the inhabitants receive desirable government services.
Sometimes people may not have treated the work of the Australian Tax Office as one of the crucial offices in Australia. However, those businesses that have committed to support the government in helping the economic growth of the country are aware that taxation is very crucial. When businesses commit to constantly submit their tax obligation to ensure that not only do they comply but also play a part of growing the country’s economy.
After the collection of income tax, company tax, capital gains on goods and services among other taxable gains, ATO is able to advise the government on available funds. One of the things that Australian government has done to ensure better collaboration is that of having agreements with over 50 countries to ensure that there is promotion of external support on taxation process.
Through Foreign Direct investment, the country also benefits from having external firms and individuals who do business in Australia. The Tax treaties entered between Australian government and other government has helped in the realization of enhanced revenue from taxation arrangements.
When financing the annual budget for the government, the focus is always on how money can be raised through taxation to meet a high percentage of the set budget target. The improvement of roads, power lines, social amenities such as schools among others form the main consumers of government spending.
However, the wage bill and money used to pay public servants’ salaries. The government has been in the process of automating most of its operations owing to the trends in the market. This is in efforts to minimize the shortcomings that come with the manual involvement of officers in the provision of services to the citizens. In addition, with the increased reliance on the internet, the government is also integrating the process completion procedures into simplified user interface modules for the various operations within the arms of government. There is therefore increased interoperability among the various departments. This has led to reduction of procedures that engaged a lot of labor force.
The tax helps government to remain healthy in running its operations well and hence provide the leadership that the people desire. Without proper tax collection even the services that we see on our daily day would not be possible. Therefore, it is a great duty as a responsible resident and non-residents as per year.