The institute said the new initiative provides taxpayers with more insight into where their tax dollars are actually going.
Under the initiative, anyone who pays more than $100 in tax in any financial year will receive a receipt from the government detailing their individual tax contribution and a breakdown of how the money was spent by the government in providing services to the community.
“The Tax Receipt initiative is one way that the government can reconnect with individual taxpayers and increases transparency of how their tax contribution is being spent,” said IPA chief executive officer Andrew Conway.
“Just like local councils show ratepayers how their rates are spent, the government will provide similar information to highlight how our tax dollars are allocated across all major spending initiatives.
“The receipt not only highlights how tax revenue is being spent but provides an overview of Australia’s current debt level and interest payments required to service such debt,” he added.