Taxes are often regarded by the general public as a ‘necessary evil’.But despite the pessimism, a 2006 report on how Australia’s taxes compare with other Organisation for Economic Co-operation and Development (OECD) countries shows that Australia is a low-tax country. It was found that Australia’s overall tax burden (31.6 per cent), measured as the tax to GDP ratio, is the eighth lowest of the 30‑member OECD. Australia’s mix between direct and indirect taxation is in line with other OECD countries, although the composition differs. For example, Australia has a lower reliance on value-added and sales taxes and a relatively higher reliance on property and transaction taxes. And unlike some other countries, Australia does not levy any wealth, estate, inheritance or gift taxes.
