First State Income Tax (1880)
7 June 2017
![australia taxes 1900](https://taxfitness.com.au/Portals/0/Images/blog%20posts/state%20taxes%20banner.jpg?ver=2017-06-07-131320-103)
Tasmania was the first state to introduce an income tax in 1880 to raise revenue due to a fiscal crisis. The tax took the form of a withholding tax on distributed income of companies. In 1884, a general tax on income was introduced in South Australia, and in 1895 income tax was introduced in New South Wales at the rate of 2.5%. By 1907 all states had established income taxation and as they varied in form from state to state, were a nightmarish mishmash.
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