Everyone is getting confused between the state and fedral governments, Howard has absolutely nothing to do with speed camera revenue which is a state government revenue. Given that you pay your tax dollars to the fedral government, how on earth do the state governments get funding? heres how -
1. Get handouts from fedral government
2. Get handouts from the fedral government with money from other states, IE how NSW and Vic are bankrolling every other state.
3. Stamp Duty
4. Council rates
5. Speed infringement notices.
Income tax wasn't a fedral issue until ww2, when the states released their laws and acepted the constitution on the new tax system. The deal was that income tax would become a state issue after the war. Well the state govt is still waiting.
As for where the hell is the money going in NSW? well simple as we bankroll the rest of the country, NSW govt gets less money per capita than some of the other states, thus they need to find other ways.
Where the hell is the money going ? Your income tax is going towards stuffups the govt have had recently with their own investments, the 8 billion defence force budget surplus "loss" is a key example of this.
State wise ? well in NSW its funding your lovely airport rail link which no one uses, the new parramatta railway line, which no one will really use, the sydney olympic site, which no one uses. See a pattern forming ?
Oh yeah, and together with "political donations", funding the caucuses and media campaign to try to landslide the next election......