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The cost of an Australian passport is going up next year
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you do not need passport inside Australia. But in other hand you still paying for driver licence/photo id.
Much of that cost is third party insurance, though. If you are in an accident and someone is hurt, the government will cover their rehabilitation. Or yours, I guess if you are the one hurt.
I expect that much of the cost of a passport funds the embassies and consulates around the world. At least in theory.
technically you could probably get away without those either. I'm actually unsure of the law there but I'm not sure its compulsory to own one of those IDs? would make buying booze hard though without if your younger
That's largely because the states handle both transport and policing.
And we don't pay taxes directly to the state governments - only stamp duties. /s