Each year the Federal Treasurer and the Minister for Finance circulate the budget papers. Using a recent budget paper (you can find these at www.budget.gov.au), answer the following questions and provide some numbers to support your answers.

a Figure 12.1 shows that total revenue of the federal, state and local governments, as a percentage of total income, has tended to increase over time. Is this increase evident when the tax revenue of the federal government is considered on its own?

b Looking at the revenue of the federal government, how has the composition of total revenue changed over time? Are personal income taxes more or less important? Company income taxes? The GST?