ANALYSE AND APPLY 6. Explain what is meant by regressive tax and provide an example. 7. Explain what is meant by rebate and how it can influence consumer spending. EVALUATE AND COMMUNICATE 8. Explain why it is important for the government to redistribute income through taxation. Justify your response. 9. Explain why the government needs to use some taxation revenue to produce goods and services. 10. Explain the concept of a budget deficit and why you think it may be necessary for a government to plan for a deficit. Answers and sample responses for this topic are available online.
LESSON 21.5 Inquiry: How would you tax the Australian public?
LEARNING INTENTION By the end of this lesson you should be able to explain the process involved in developing a tax system.
Background
In reading and discussing the material in this topic, you should now have an understanding of Australia’s taxation system. Each year it is the responsibility of the Treasurer (a government minister) to prepare Australia’s budget. The Treasurer determines how much money the government will raise through taxation — and whether to raise or lower taxes, introduce new taxes or abolish a tax. The Treasurer also determines what the money will be spent on and in which amounts. Your task is to consider how you might tax the Australian public and how you might allocate the tax raised.
FIGURE1 The Hon Dr Jim Chalmers MP was sworn in to the role of Treasurer on 23 May 2022.
Before you begin Access the Inquiry rubric in the digital documents section of the Resources panel to guide you in completing this task at your level. At the end of the inquiry task you can use this rubric to self-assess.
Inquiry steps Step 1: Questioning and researching Investigate the current tax system to work out some of the tax types and rates. Step 2: Interpreting and analysing Analyse the information you found and consider how fair you think it is.
TOPIC21 Understanding tax and consumer literacy 615
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