Wow!
My first thought was the black market must be booming. They are now looking at reducing the tax because half of the tobacco smoked is untaxed on the black market.
Wow!
My first thought was the black market must be booming. [After a quick look it is.](https://www.abc.net.au/news/2024-10-26/lower-tobacco-excise-to-stamp-out-black-market/104502042) They are now looking at reducing the tax because half of the tobacco smoked is untaxed on the black market.
Despite the significant tax increases, the tax revenue has collapsed from a peak of $16 billion in 2019/20 to $9.8 billion in 2023/24 — a fall of 39 per cent in four years.
Australia has crossed Hauser's Law or the Laffer Curve. This simply means, people are unwilling to pay the added tax, so they either stop the activity or seek other means.
This applies to income tax rates as well.
>Despite the significant tax increases, the tax revenue has collapsed from a peak of $16 billion in 2019/20 to $9.8 billion in 2023/24 — a fall of 39 per cent in four years.
Australia has crossed *Hauser's Law* or the *Laffer Curve*. This simply means, people are unwilling to pay the added tax, so they either stop the activity or seek other means.
This applies to income tax rates as well.
(post is archived)