Impact of tax on individual and business decisions
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Introduction
In this activity, learn about how governments use tax revenue or impose taxes to either encourage or discourage the consumption of certain goods and services. They interpret information and data to draw conclusions about the influence of tax on individual and business decisions. This activity includes a response to stimulus exam.
Achievement standard
By the end of Year 8, students explain how markets influence the allocation of resources to the production of goods and services. They explain ways that businesses adapt to opportunities in markets and respond to the work environment. They describe the importance of Australia’s taxation system and its effect on decision-making by individuals and businesses. Students explain why individuals and/or businesses budget and plan.
Students develop a range of questions to investigate an economic and business issue. They locate, select and organise relevant information and data. They interpret information and data to identify economic and business issues and trends, and describe economic cause-and-effect relationships. They develop a response to an economic and business issue. They identify and evaluate potential costs and benefits. Students use economic and business knowledge, concepts, terms and research findings to create descriptions and explanations.
Content descriptions
Economics and Business Knowledge and Understanding
The importance of Australia’s system of taxation and how this system affects decision-making by individuals and businesses. (AC9HE8K04)
Economics and Business Skills
Locate, select and organise information and data from a range of sources. (AC9HE8K02)
Interpret information and data to identify economic and business issues, trends and economic cause-and-effect relationships. (AC9HE8S03)
Develop a response to an economic and business issue, identifying potential costs and benefits. (AC9HE8S04)
Create descriptions and explanations, using economic and business knowledge, concepts and terms, and referencing information and data from sources. (AC9HE8K05)
Teacher resources
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Role of tax in influencing decisions
Student learning resources
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Tax and You
GST-free goods and services
Impact of tax on individual and business decisions
Impact of tax on individual and business decisions
Impact of tax on individual and business decisions
Suggested activity sequence
This sequence is intended as a framework to be modified and adapted by teachers to suit the needs of a class group. If you assign this activity to a class, your students will be assigned all student resources on their 'My learning' page. You can also hand-pick the resources students are assigned by selecting individual resources when you add a work item to a class in 'My classes'.
Part A: The impact of tax on purchasing decisions
- Display page 1 of the visualiser to explain how and why the government uses taxes to encourage or discourage the consumption of some goods and services. If you want to deepen learning, display and explain the remaining slides on the visualiser. As you do, invite student responses to the questions on each page.
- Students complete Tax and you – interactive to consolidate their understanding about what goods and services are taxed, subsidised or tax-free.
Part B: Exploring how tax can influence decisions with a case study of GST
- Remind students that all Australians pay GST on most goods and services they buy. As a class, read the GST explainer.
- Discuss the following, modelling responses where necessary:
- How does not applying GST incentivise individuals to buy these goods and services? (for example, choosing to buy fresh fruit and vegetables over processed foods, the choice to buy medicine, the choice of sending children to childcare).
- Why does the government incentivise the purchase of GST-free goods and services?
- What are the costs and benefits of not charging tax on these goods and services?
Part C: Preparing for the assessment
- Organise students into mixed ability groups.
- Give each student a copy of the data sheet and worksheet.
- Groups collaboratively read each worksheet question, the related source materials and develop a response. Students individually record their group’s response on their own worksheet.
- Ask students to re-read the stimulus (data sheet) for homework and bring their completed worksheet and data sheet to the next lesson.
Part D: Assessment task
- Students complete the assessment task in exam conditions. They should have access to both their worksheet answers and stimulus material. Allow about 60 minutes for them to complete the task.
- Collect the assessment task and use student responses to make judgments about student performance in relation to the achievement standard.
Useful prior learning
Related Activities
The following activity covers the impact of excises on sugar sweetened beverages (SSBs), individuals and businesses, but it does not cover incentivising the purchase of merit goods. In this activity, students engage in an investigation instead of a response to stimulus exam.