If a person is under 18, has left full-time schooling, and works full-time, they will be subject to income tax like other full-time workers. To pay income tax, a person must have a tax file number (TFN). A TFN is a personal reference number in the tax and superannuation systems. It is an important part of tax and super records and one’s identity, so it should be kept secure. Each person retains their TFN for life, even if they change their name, jobs, move interstate, or go overseas. People are not required to have a TFN, but without one, they will pay more tax. Additionally, they won’t be able to apply for government benefits, lodge a tax return electronically, or get an Australian business number (ABN). Most secondary school students apply for a TFN when they gain their first part-time job or undertake work experience in Year 10. 21.4 SkillBuilder activity INTERPRETING AND ANALYSING Australia uses a progressive income tax system known as the pay-as-you-go (PAYG) system. The system groups income earners into tax brackets based on their incomes. The tax brackets in 2024 were shown in TABLE1 in section 21.4.1. 1. The following people have asked you to determine how much tax they will pay using these tax brackets. Calculate the amount of tax payable for each person. Person Income Person Income Adam $ 35800 Josh $ 12700 Anil $132500 Megan $350000 Feng $ 89200 Dev $231600 Claire $157400 Kaan $800000
2. Explain to Kaan and Megan why they pay more tax than others in the group. Ensure you use the information you learned in this lesson in your explanation. Try to keep it simple.
21.4
Exercise
Learning pathways LEVEL1 2, 3, 4
LEVEL2
LEVEL3
1, 5, 6, 8
7, 9, 10
Remember and understand 1. Determine whether the following is True or False. Excise duty is only paid by businesses, not by individuals. 2. Identify what GST stands for.
A. Government Services Tax B. Government Spending Tax C. Goods and Spending Tax D. Goods and Services Tax 3. Identify two products that have an excise duty imposed upon them. A. Fruit B. Alcohol C. Clothing D. Homewares E. Tobacco 4. State three purposes of Australia’s tax system. 5. Identify the two types of taxes used by the government.
614 Jacaranda Humanities Alive 8 Victorian Curriculum Third Edition
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