Federal Budget Flashcards
(21 cards)
Main source of tax
Income tax
Person who puts it all together
Treasurer
Main area of spending
Welfare
Expenditure
Government spending on items such as pensions, education, health & defence
Revenue
Tax collections (income tax, company tax and GST)
Calendar Year
Jan 1st -> Dec 31st . 12 month period. Most things operate during a calendar year
Financial Year
July 1st -> June 30th. 12 month period
Different types of revenue
Income tax- up to $18,200 is tax free
Company tax- Payd on profits only around 30%
GST(Goods &bServices Tax)- at 10%
Where does most revenue come from?
Income tax
Tax cuts?
1 1/5% decrease in company tax
Where does the money go?
Social security- age pension, the doll (unemployment benefits), disability payments
Which expenditure sections have increased since last year?
More money has been put into childcare, and spending on anti-terrorism
Overall message in thus year’s budget
By encouraging small business’ to grow the government aims to boost the economy
Who is responsible for preparing the 2014 Federal Budget?
Title, name, political party
The federal treasurer is in charge of the federal budget.
2 greatest sources of revenue
Rising unemployment and lower business activity
2 largest areas of expenditure
Government trying to stimulate the economy as a result of the global financial crisis
Surplus
Surplus- when expected receipts are greater than expected outlays
When government would use budget deficit
if it wanted to increase ecenomic activity (if there was recession) by pumping money into the economy
Budget Deficit
When expected receipts are less than expected outlays
Balanced Budget
When expected receipts are equal to expected outlays.
When would the government use budget surplus?
if it wanted to reduce the level of economy activity (if the economy was very strong, and running at full capacity with inflationary pressures)
