Australia's tax system:

Question

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Australia's tax system is considered vertically equitable, meaning that those with higher incomes pay a greater portion of their income in taxes compared to those with lower incomes. This is achieved through a progressive income tax system, where those with higher incomes pay a higher marginal tax rate. Australia's tax system does impose deadweight loss, as all taxes do, but the government aims to keep this as low as possible by designing taxes to minimize distortion to the economy. Australia also uses a mix of lump sum taxes and taxes on specific goods and services. The flypaper principle does not apply to the Australian tax system.

Australia's Tax System