Environmental protection laws Some entrepreneurs care about the environment. Different states have different laws for this. Entrepreneurs who create eco-friendly products can succeed because many customers value the environment too. Paying tax One responsibility of all Australians who work is to pay income tax. Australia operates a progressive income tax system known as the Pay As You Go (PAYG) system. This means that income tax is automatically deducted from a person’s pay each week, fortnight or month, depending upon how often they are paid. It is called a progressive system because as a person’s income rises, the percentage of their income paid in taxes increases.
FIGURE3 A tax return form
Source: https://www.tmsfinancial.com.au/tax-return/
It is a responsibility of workers to pay taxes. The government uses this tax revenue to pay for essential services such as roads, education, hospitals, defence and income support for those unable to earn an income themselves.
Progressive income tax
TABLE1 Resident tax rates 2024–25 Taxable income
Tax on this income
0–$18200
Nil
$18 201–$45 000 $45 001–$135 000 $135 001–$190 000 $190 001 and over
16c for each $1 over $18 200
$4 288 plus 30c for each $1 over $45 000 $31 288 plus 37c for each $1 over $135 000 $51 638 plus 45c for each $1 over $190 000
Source: https://www.ato.gov.au/tax-rates-and-codes/tax-rates-australian-residents
610 Jacaranda Humanities Alive 7 Victorian Curriculum Third Edition
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