Strengthening revenue collection to help finance economic growth, poverty reduction

Improving governance — including the rule of law — and supporting stable investment and taxation environments are critical to economic growth and poverty alleviation. Countries need less aid when they can raise adequate revenue themselves to meet development goals.

Global Financial Integrity estimates that outflows from developing countries due to tax avoidance and illicit financial flows amount to around $1 trillion each year, which dwarfs global aid flows of $134 billion.

Australia is committed to strengthening efforts to build revenue capacity and effective tax, governance and anti-corruption systems in developing countries. As part of this, we are building institutional linkages through our Treasury and Taxation Office and their counterpart authorities, with a focus on the Indo-Pacific region.