It is predicted that the government will spend $464.26 billion in the next financial year, so where are all your hard-earned tax dollars going?

Whilst we all dislike paying tax, without it life as we know it would be very different.

Whether you pay business tax, income tax, property tax etc… all your tax dollars are distributed throughout the economy for a variety of reasons.

The largest portion of your tax goes towards social security and welfare, which helps assist the aged population, the unemployed, disabled sector and other living support payments such as unemployment benefits. Whilst this does count for more than a third of your taxes, the figure is expected to grow.

The second largest portion of your tax dollars, roughly around 20% goes to paying public debt to rectify the annual budget deficit.

Approximately 15% of your tax dollars is paid to the health system to fund Medicare and public hospitals.

After these three major expenses are taken from your tax, the remaining sum is divided between education, defence, public services, transport, communication, fuel and energy, housing schemes and amenities, public order and safety, recreation, arts and culture, agriculture, forestry and fishing.

Whilst no one likes paying tax, it’s evident that life as we know it would be very different without our tax system. The are many genuine and legal ways to minimise the tax your pay. If you would like to take advantage of these options, call Odyssey Business Knowledge for a review of your affairs.