What Is The Purpose Of Imposing Tax On Citizens?

What is tax?
 

Tax is that part of the income which is to be remitted to the government for various social welfare activities, infrastructure, etc. As a businessman or working person, we are using the resources of Australia and enjoying the advantages of various subsidized services. So, it becomes the foremost duty of a citizen to file his dues in the form of tax return every year timely.

How Government Uses These Funds?
 

Governments around the world, raise funds by imposing a burden of tax on the residents and non-residents earning in the country. The collected funds are then utilized in rendering various services to needy classes of the country.
Look below to know more about the usage of these funds by the government:

Investment in Defense Sector
 

Most of the collected tax belongs to the defense sector only. Protection of the borders of a country is considered as one of the foremost requirement for a country. Sometimes, heavy taxes are also imposed on the import of sub-standard material to safeguard the local market, from harmful commodities of other countries.
 

The responsibility of guarding the frontiers of the nation along with strong internal vigilance mechanism lies with the government. These projects of national importance are backed by the price paid by Australian taxpayers.

Enhancing Standard of Living
 

The amount collected through taxation is often utilized by the government as a social and political tool to enhance the standard of people. This money serves to fill the gap between the haves and have not. It encourages people in a certain sector and works for their betterment. 

 

These collected tax submitted by people through tax returns are directly adjusted to support growth and directly affects the economy of the country. For example, the government may remove some transport taxes in Sydney to improve communication and network in remote areas.

Infrastructure Development
 

Collected tax revenues play an important role for the government, in enhancing the infrastructure facilities of the country. These infrastructure facilities include the development of roads, buildings, emergency facilities, hospitals, network, etc. The government always focuses on modernising and enhancing the areas of national significance.
 

A nation with good infrastructure attracts businessman to do business with the country. It also enhances the tourism industry and attracts people all around the world. So, if you are filing your tax return in Sydney or somewhere else, then you are supporting the Australian government to enhance these facilities further.

Employment Creation
 

A nation is built on the strong shoulders of the youth. Development of youth and making them self sufficient is among the foremost priorities of a nation. With the collected tax amount government raises the employment in the country by educating and training the potential workforce. 
 

Training and education make them self-dependent, which ultimately assists in national building. 

Final Thoughts
 

It may seem painful, to pay a considerable part of your hard-earned income to the government, but it has numerous long-term benefits, as well. Australian Government uses this money very judicially for the betterment of the country by enhancing the living standard of the citizens.