The Tourism Tax Burden: Evidence from Australia

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Ihalanayake, Ranjith ORCID: 0000-0002-5407-203X and Divisekera, Sarath ORCID: 0000-0002-2880-0849 (2006) The Tourism Tax Burden: Evidence from Australia. Tourism Economics, 12 (2). pp. 247-262. ISSN 1354-8166


This paper examines the structure, trends and magnitudes of tourism taxes in Australia. Of the two types of broad taxes, general and special, the former accounts for the largest portion of the total tax revenue: excise duties have been the single major contributor, accounting for more than half of the tax revenue in the 1990s. Following the tax reforms in 2000, the Goods and Services Tax (GST) became the major contributor to tax revenue. A comparison of estimated tourism taxes with comparable sectors indicates that the tourism sector overwhelmingly makes a high contribution to national tax revenue. Similarly, while tax revenue from the all sectors has grown over time, an above-average growth in the tourism taxes is evident, particularly since the introduction of the GST. In conclusion, the Australian tourism sector appears to bear a relatively high tax burden and the burden is rising. The GST, an important element of the tax reforms of 2000, seems to have imposed a disproportionately heavy tax burden on the tourism sector.

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Item type Article
DOI 10.5367/000000006777637421
Official URL
Subjects Historical > Faculty/School/Research Centre/Department > School of Economics and Finance
Historical > FOR Classification > 1506 Tourism
Historical > FOR Classification > 1402 Applied Economics
Historical > FOR Classification > 1401 Economic Theory
Keywords ResPubID10786, tourism taxation, Australian tourism, tourism sector, tourism taxation, tourism tax structure, Australian tourism sector, World Tourism Organization, WTO, tourism product, Australian tourism satellite account, ATSA, gross domestic product, GDP, tourism competitiveness monitor, TCM, passenger movement charge
Citations in Scopus 6 - View on Scopus
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