There is another rewrite of history that does the rounds about income tax going to some sort of first world war effort - before anyone of common sense and lacking in research brings this one up I'll post this.
"In 1910 a land tax was introduced by the Commonwealth Government to provide for the defence of the nation and to prepare for a major increase in migration."
Same link as before
http://www.ato.gov.au/corporate/content.asp?doc=/content/tax_history.htm
Same PM by the way - the Labor party Mr.Fisher, what he actually wanted to do was take money from supposedly rich squatters and keep it, using a "war effort" as an excuse.
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