to find and use tools to research Australian Commonwealth, State / Territory and Local Government tax law.
When starting your research, depending on your level of knowledge of the subject, we recommend you begin with:
1. brief subject overviews such as those provided by the Australian Taxation Office (ATO); and
2. by looking at recent scholarly secondary sources.
We recommend starting with:
3. If you are looking for information on a specific tax law topic, we recommend academic journal articles - see the Journals page in this Guide.
For more information on approaching tax research see Barkoczy, 'Researching a Tax Problem', chapter 3 of Core Tax Legislation and Study Guide (OUP, 23rd ed, 2020) High Use KM 356 BARK
Australian tax law is created by statute, so its primary source lies in legislation (Acts of Parliament and delegated legislation such as Regulations). However:
For more information on the sources of Australian tax law, see the latest edition of Kerrie Sadiq et al, Principles of Taxation Law (Thomson Reuters) chapter 1.
Section 51(ii) of the Australian Constitution grants the Commonwealth the power to impose taxes, and to impose laws regarding the collection and administration of taxes. The Constitution also distributes taxing rights between the Commonwealth and the States. For example, by virtue of s 90, only the Commonwealth can impose customs and excise duties, whereas income tax can be levied by both the Commonwealth and the States. However, since 1942 only the Commonwealth imposes income tax, and this is by far the largest source of revenue for the Commonwealth Government.
Revenue to the States and Territories is from two sources: Commonwealth Government grants (under s 96 of the Australian Constitution) and appropriations, such as the goods and services tax (GST) - this is imposed and collected by the Commonwealth, and all GST revenue is distributed to State and Territory governments; and the imposition of State and Territory taxes. The taxes imposed by the States and Territories include duties, land tax and payroll tax, and various transaction-based (such as gambling) and industry taxes.
In the Northern Territory and all States, local (municipal) governments also impose taxes (the ACT has no local governments). These taxes are restricted to rates on property. Unlike Commonwealth and State taxing powers, the power of local governments to tax is not derived from the Australian Constitution - the Constitution does not mention or recognise this third tier of government. The local government sector is a statutory creation of the States and derives its powers from State and NT legislation. State Constitutions all recognise local governments (the NT does not have a constitution). State and Northern Territory legislation gives power to local governments to impose taxes. Local governments also receive grants from the Commonwealth to contribute to the provision of services, under the Local Government (Financial Assistance) Act 1995 (Cth).
For statistics on all Commonwealth, State and Local government taxation revenue, see the latest Australian Bureau of Statistics' Taxation Revenue Key Figures.
Data for graph from the Australian Bureau of Statistics
For more information on the power to tax and sources of tax in Australia, see eg: the latest edition of K. Sadiq et al, Principles of Taxation Law (Thomson Reuters).