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Australia’s development program

Domestic Revenue Mobilisation

2019-20 budget estimate
$21.7 million

A sustainable revenue base is a prerequisite for resilient and sustained economic growth. COVID−19 has caused a significant economic shock with governments around the world increasing fiscal deficits and drawing heavily upon government finances for economic stability.

This situation has amplified the importance of enhancing Domestic Revenue Mobilisation (DRM) (eg tax collection systems) as one of the most sustainable and reliable pillars of financing for development. Raising domestic revenue equitably and efficiently is invaluable for financing effective government service delivery and strengthening resilience in times of crisis.

Partnerships for Recovery and domestic revenue mobilisation

Domestic revenue mobilisation contributes directly to the Stability and Economic Recovery pillars of Partnerships for Recovery: Australia’s COVID-19 Development Response

An efficient and well-administered tax system enables higher quality governance, provides funding for governments to deliver essential public services and achieve boarder development goals, as well as creating an environment for the private sector to flourish. Increasing DRM is also integral to financing the 2030 Agenda for Sustainable Development and the Financing for Development Addis Ababa Action Agenda.

Australia's DRM work is guided by the Framework for supporting tax policy and administration through the aid program. This framework sets out our approach to increasing support for tax policy and administration reform in partner countries to meet our commitment to the Addis Tax Initiative (ATI).

How we are helping

Australia has a longstanding commitment to promoting international best practice taxation and DRM systems. Australia is proud to be a founding member of the ATI in 2015. The ATI is a multi-stakeholder partnership involving 45 countries, including Australia, and 17 supporting organisations that promotes fair and effective DRM in developing partner countries.

ATI partner countries from the Indo-Pacific include Afghanistan, Indonesia, Nepal, Pakistan, the Philippines, Mongolia and the Solomon Islands. ATI supporting organisations include the ADB, IMF, OECD and the World Bank.

The first phase of the ATI committed Australia to doubling our support for technical cooperation in the area of taxation and DRM in developing countries from $10.8 million in 2015 to $21.7 million by 2020. Australia reaffirmed our commitment to the ATI under the second phase of the ATI (2020-2025) in November 2020. Under the new ATI Declaration 2025, Australia has committed to the collective global target of USD441.1 million annually to maintain support for DRM at 2020 levels to 2025.

How we contribute

Australia delivers technical assistance regionally through participation in multilateral trust funds, and through our bilateral programs including via partnership with the Australian Taxation Office (ATO).

Australia contributes to the work of the OECD in its Global Forum initiative which is a multilateral response to tackle offshore tax evasion. It brings together 160 jurisdictions dedicated to improving transparency and the exchange of information for tax purposes. Australia also contributes to the work of the International Monetary Fund and the World Bank Global Tax Program in providing tax-related technical assistance across the Indo-Pacific region.

Through the ATO Australia delivers specific technical assistance and capacity building programs via bilateral country partnerships in Indonesia, PNG, Fiji and the Philippines.

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