Lesson 9: Employer Responsibilities to Workers and the Government Flashcards
Learning Intention: discuss employer responsibilities to workers and the government, for example superannuation, paid parental leave, pay as you go (PAYG) withholding, income tax, company tax or the Goods and Services Tax (GST). (21 cards)
3 responisbilities employers have to workers
- pay correct income
- provide a safe wokspace
- abide by employment laws
3 employer responsibilites to the government
- pay and collect taxes through PAYG and GST
- transfer taxes to the ATO
- implement government plocies such as paid parent leave
Why do taxes exist
because the government needs to fund collective wants and because they are a main source of govenemrnt revenue
6 types of taxes in Australia
- personal income tax
- company tax
- excise duty
- customs duty
- capital gains tax
- GST
What is personal income tax
when workers pay a percentage of earning to the federal government
What is company tax
tax paid by businesses based on their profits
What is excise duty
special tax on cigarettes, alcohol and petrol
What is customs duty
tax on imported goods
What is capital gains tax
tax paid on profit from selling assets like property and shares
What is GST
10% on most goods and services except for fresh food, medical and educational services
What is PAYG
when employers deduct tax from wages and send it to the ATO
What does a Tax File Number (TFN) Declaration do
determines the tax deducted from wages
What are tax returns
when the ATO checks if tax paid is correct and refunds overpaid tax or requests additional payment
Why is paid parental leave important
allows employees to receive an income while caring for a newborn
2 resons why superannuation is important
- it provides financial security in retirement
- aged pension alone does not provide a confortable lifestyle
How much do employees contribute to superannuation
9.5% of their wages
What fraction of your working wage do you need for a comfortable retirement
two thirds
2 factors that affect the amount of superannuation needed
lifestyle and cost of living
2 ways to boost retirement savings
- investing in property or shares
- leaving money in a super fund for longer
3 advatages of superannuation
- increases value over time
- super fund stays active even when changing jobs
- helps maintain financial independence in retirement
3 disadvantages of superannuation
- cannot access funds until at least age 60
- investments may lose value over time
- management fees reduce final returns
