I’ve often wondered where my tax dollars go. To answer this question, I thought I should develop something to work this out. The process is as follows:
- Determine what % of Government expenditure is financed by individual income taxation.
- Determine what % an individual contributes to this pool of total individual income taxation.
- Determine how this money is apportioned between the different sectors (e.g. Health, Education, Defence) based on the same ratios as the total Government expenditure.
Simply choose a financial year and enter in your taxable income (either by typing it into the text box directly or using the slide bar underneath).
The graph should update automatically and report how your taxable income was split between the different sectors of expenditure. You can also toggle between your personal contribution and the total expenditure of the Government.
Tax payers should be proud to contribute. Knowing that $x is going to health, $y to education may make people feel less like their money is going into the ether and more towards something of worth. Or, it may fuel the fire of complaint about where your tax dollars go and raise questions around the efficacy of Government spending programs – you’re entitled to feel that way too!
By taking the different spend mixes from the budgets back to 2009-10, in conjunction with the different tax rate tables, a quick comparison can be made for the contribution an individual makes to a given sector for a given taxable income between years.
The calculator doesn’t account for the non-Income Tax contributions made by individuals, such as GST, Capital Gains Tax, Petrol Excise etc. so this shows what you hand over as a minimum.
$7,732- Your average (cf. marginal) tax rate is: 15.46%.
- Individuals income taxation constitutes 44.06% of total Government revenue2.
- Your contribution constitutes 0.0000044% of the individual income taxation revenue received.
- Australia would need 22,684,946 tax payers paying the same tax as you to provide the Government with the same amount of revenue.
Your Contribution (2013-14) – in $
- Social security and welfare: $2,682
- Other purposes: $1,429
- Health: $1,255
- All other functions: $915
- Education: $577
- General public services: $447
- Defence: $427
Government Expenditure (2013-14) – in $millions2
- Social security and welfare: $138,100,000,000
- Other purposes: $73,600,000,000
- Health: $64,600,000,000
- All other functions: $47,100,000,000
- Education: $29,700,000,000
- General public services: $23,000,000,000
- Defence: $22,000,000,000
Government Revenue (2013-14) – in $millions2
- Individuals income taxation: $175,400,000,000
- Company and resource rent taxes: $77,400,000,000
- Sales taxes: $54,300,000,000
- Non-tax revenue: $21,100,000,000
- Petroleum excise: $17,200,000,000
- Borrowings: $10,400,000,000
- Other excise: $8,800,000,000
- Customs duty: $8,800,000,000
- Superannuation taxes: $8,500,000,000
- Carbon pricing mechanism: $8,300,000,000
- Fringe benefits tax: $4,300,000,000
- Other taxes: $3,600,000,000