Tax burden on workers among OECD highest

The proportion of personal income tax in Australia's total revenue haul is the second highest in the world, behind Denmark.

Australia rakes in more from personal income and company taxes as a proportion of national revenue than in most places in the world, while the take from GST is one of the lowest.

Organisation for Economic Cooperation and Development (OECD) figures show personal income tax makes up around 40 per cent of the country's revenue, the second highest in the world behind Denmark.

Company tax as a proportion of revenue is smaller at 15 per cent, but is still the third highest among OECD countries.

The OECD's revenue statistics 2017 report released on Thursday also shows GST is just 13 per cent of total revenue and stands 33rd in the 35-country OECD bloc.

The Paris-based institution has long urged Australia to take the pressure off personal and company taxes by either raising the GST rate, broadening its base or both.

However, such advice has been ignored by successive governments, with the rate having been at 10 per cent since the GST's inception in 2000, and food, health and education remaining exempt from the impost.

Still, the report also shows revenue generated in Australia as a proportion of GDP is below the OECD average and ranked 28th out of the 35 OECD countries.

TAX-TO-GDP RATIO

Australia

2014 - 27.4 per cent

2015 - 28.2 per cent

2016 - n/a

OECD average

2014 - 33.9 per cent

2015 - 34.0 per cent

2016 - 34.3 per cent

Australia's tax-to-GDP ratio was 30.4 per cent in 2000 and declined to 25.4 per cent in 2010

(Source OECD)


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Source: AAP



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