Taxation Flashcards
(15 cards)
What is tax and why is it important?
Taxes are contributions of money that both individuals and businesses pay to the government. This contributions are used to fund programs and services in a country
Why do we pay taxes?
To improve the quality of life
education: Teachers, resources, materials
Infrastructure: Roads, bridges, pubic transport and water systems
Social welfare: Pension, disabilities, jobseeker payments, carer allowance
Defense: Border protection, intelligence, Technologies
Why does the government receive scrutiny regarding taxes?
People often disagree with what the government chooses to spend tax money on and there for the government receives a lot of scrutiny.
How can taxes be seen as a long term investment?
Putting money into the country/ society for long term growth for it to compound over time and pay in dividends in returns.
what is income tax?
If you have a part time job, a small portion of your money will go to the government
what is sale tax?
every time you buy something, you pay a sale tax that gets add to the price
What is medicare levy tax?
is a surcharge of 2% on high income earners that don’t have private health insurance.
What is the purpose of a tax file number?
to manage and track your taxes and super. The Australian tax fund office moniters this.
What is Capital gain tax?
the tax you pay for the profit made from selling shares or/and properties.
What are some other things you may get taxed on?
Grants and allowances from the government such as welfare
Foriegn income- if you receive income overseas
business tax- tax you pay for owning a business
What are some things you can’t get taxed on?
Lottery or prize money
Gambling wins
gifts
inheritance
child support
What are tax brackets?
Tax brackets dictate how much you pay based on your income, generally higher incomes pay higher tax in the aim to achieve equity
How can you reduce your tax to maximize your income?
By getting a tax reduction
What things can you get a tax reduction on?
work related expenses that are relative to your job
Union fees
Donations to charity
when do you lodge your tax return?
soon after the end of the financial year ( June 31st)
