While the focus is on income tax paid to the federal government, the reality is that individuals and businesses are constantly paying a wide range of taxes; not only to the federal government but also to state and local governments. On one count, there are at least 125 different taxes in Australia, although 10 of them account for 90% of the revenue.

When all taxes are brought into the picture, it can be surprising just how much tax we pay. Hence, the income tax cuts that come into effect on 1 July are put into a different perspective; in fact, they will be only about 3% of a year’s total taxation.

For this reason, the focus of this report is on total taxation at all levels of government, and the shares of each level of government — federal, state and local — are of secondary importance.