The taxation system and the principle of honesty
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Introduction
In this activity, students explore the concept of honesty, how honest they are and the consequences of being dishonest, both generally and in relation to taxation. They learn that the taxation system is based on the principle of honesty and trust and reflect on the consequences of people cheating the system.
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
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. (AC9HE8S05)
Teacher resources
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Why should you pay tax?
Taxpayers charter and honesty
Student learning resources
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How honest are you?
The consequences of dishonesty
Writing paragraphs in Economics
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: Honesty
- As a class, discuss the meaning of honesty. Invite students to give examples of honesty and dishonesty.
- Students complete the How honest are you? Quiz.
- Invite students to share their results or if they were surprised by them.
- Use a grouping strategy to organise students into groups of 3 or 4.
- Groups complete a mind map by following the group instructions.
- Post mind maps on the wall.
- Conduct a gallery walk and allow groups to explain their mind maps to others.
- As a class discuss the collective views of the consequences of dishonesty.
Part B: Honesty and the ATO
- Display the visualiser and discuss the rights and obligations of taxpayers in relation to the ATO.
- Explain that some people cheat the system by either:
- not declaring income
- over-claiming deductions.
- If students have not already viewed this video, play: Why should you pay tax?
- Original groups brainstorm the consequences of cheating the tax system, drawing on earlier discussions around the consequences of dishonesty.
- Use a discussion strategy such as a snowball discussion so that each group shares their findings with another group and so on, until the whole class is joined up in one large discussion.
- Students write a paragraph explaining the consequences of people cheating the tax system for themselves, others, and broader society.
Refer students to Writing paragraphs in Economics – Model.