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How governments raise and spend money

Image of How governments raise and spend money

Catalogue no: 0502

Source/Credit line: Parliamentary Education Office (www.peo.gov.au)

Description

This diagram shows how governments raise and spend money.

The federal government raises money through taxing people and businesses. The money is spent on federal matters such as: security, defence, immigration, the environment.

State/territory governments receive more than half their money from federal government and also collect taxes. The money is spent on state matters such as: roads, prisons, housing, public transport, police and ambulance services.

Local councils collect taxes (rates) from all local property owners and receive money from federal and state government. The money is spent on local matters such as: town planning, rubbish collection, water and sewage, dog registration, local roads.