This paper identifies the fuels that are taxed, the forms that the taxes take and, where possible, quantifies the amounts collected. There are various estimates of the value of government subsidies to fossil fuels in Australia. These estimates range from around $8 billion to $12 billion annually. Fossil fuels are also taxed. The Australian Government...

On 16 December 2009, the Government released its aviation white paper. This is the most comprehensive statement of the Government’s aviation policy. The white paper followed the release of the aviation green paper on 2 December 2008, and an earlier issues paper titled Towards a National Aviation Policy Statement, which attracted approximately 300 submissions. The...

Calls to abolish or modify payroll tax are often heard. For example, the Australian Chamber of Commerce and Industry has called for the abolition of payroll tax as part of wider tax reform. While several reasons are cited for abolishing or modifying payroll tax, a common reason is that payroll tax reduces employment. It is...

Summary High oil prices, increased reliance on imported oil, and environmental concerns have led to calls for mandating the blending of domestically-produced ethanol with petrol (‘fuel ethanol’). The most common proposal is for a blend with 10 per cent by volume of ethanol (E10). Mandate advocates cite fuel security, a smaller trade deficit resulting from...

A feature of Australia’s federal system is that power over spending and policy-making is becoming increasingly concentrated in the Commonwealth. One major way this power is exercised through specific purpose payments by the Commonwealth to the states in areas such as health and education.Specific purpose payments (SPPs) are grants the Commonwealth makes to the states...