Australia's Tax System

What are the 3 levels of Australia's taxation system?

• Australian

• State and Territory

• Local

• Government

Who chooses how to spend tax revenue?

• The different levels of government

• Households

• The Australian Taxation Office (ATO)

• Businesses

Which tax refers to the tax paid on an individual's income earned within a financial year?

• GST

• Personal Income Tax

• Company Tax

• Stamp Duty

Which tax is added to most of the things you buy? It is included in the price of the item and is collected by the seller.

• GST

• Personal Income Tax

• Company Tax

• Stamp Duty

The current GST rate in Australia is _______%. So when you buy something that has GST included in the price, ______% of the total cost is going towards GST. This tax is usually included in the price of the goods and services, so you don't have to pay extra for it, but it's important to know that it's there.

(a)  

Which is the missing word?

Australia has a ________ income tax where higher income earners are tax at higher rates.

• progressive

• fair

• spending

• superannuation

True or False

An apple is NOT affected by tax.

• True

• False

Answer explanation

Most basic food for human consumption is GST free. This includes apples!

True or False

A dog toy purchased from Pet Barn is subject to tax (it will incur GST)

• True

• False

Answer explanation

In Australia, GST is charged on the supply of most goods and services, including clothing. The GST rate is set at 10%.

Select the GST free items

• Milk

• Soft drink

• Biscuits

• Tea

• Cheese

GST stands for government services tax.

• True

• False