State & Territory Taxing and Borrowing 2006-7

This short brief shows the extent to which States and Territories tax or borrow on behalf of their citizenry in 2006/7.

Western Australia taxes too much and does not borrow enough when compared with other states and the total state and territory average.
The ACT has a high level of taxation and the highest level of borrowing per person of any state or territory.
NSW is at the limit of taxation and borrowing and is faced with the heaviest infrastructure renewal needs of all the States and territories.
South Australian and Victoria are overly prudent, taxing and borrowing too little when compared to the national State and Territory average.
Queensland which has traditionally been reluctant to borrow is now disguising a relatively low level of taxation with the third highest level of debt financing.
The Northern Territory has an even worse case of disguising a low level of taxation and is now using the second highest level of borrowing to finance its 2006/7 budget.
Tasmania is reluctant to tax or to borrow and this is reflective of its high level of dependency on mainland revenue.

Contact details

Peter Botsman 
Ph: 02 44651665