Public schools, hospitals and transportation are funded to ensure they remain affordable and accessible to all consumers. Tax revenue is also used to provide goods and services for low-income earners. 21.4.3 Government spending and receipts We have mentioned budgets previously in the context of what the government plans to spend. However, as you may know, budgets are two-sided and the Australian government’s budget consists of what it will spend and also what it will earn. The government earns money from a variety of sources, but a big part of this is from taxing incomes. Sometimes a government spends more than it earns, which is known as a deficit or government debt. At other times, a government spends less than it earns; this is called a surplus. The government’s budget for 2024–25 onwards is shown in FIGURE3 , with the government having a deficit of $28.3 billion in 2024–25 — an increase from the previous year, with the plan to reduce the deficit over the coming years.
FIGURE3 The government’s budget for 2023–24 and beyond
Estimates
2023–24 $b
2024–25 $b
2025–26 $b
2026–27 $b
2027–28 $b
Receipts Payments
692.3 683.0
698.4 726.7 –28.3
719.4 762.2 –42.8
760.0 786.7 –26.7
801.8 826.2 –24.3
Net operating balance
9.3
The graphs in FIGURE4 show where the receipts are coming from and where the payments are being made.
FIGURE4 Revenue and spending 2024–25
Total expenses are expected to be $734.5 billion.
Where revenue comes from (2024–25)
Fringe benefits tax $4.1
Other taxes $16.3b
Excise and customs duty $47.3b
Superannuation taxes $19.8b
Non-tax revenue $52.5b
Individual income tax $335.6b
Goods and services tax $92.1b
Company and resources rent taxes $143.8b
612 Jacaranda Humanities Alive 8 Victorian Curriculum Third Edition
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