Budgetary policy and the redistribution of income
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Introduction
Students learn about the budgetary measures the Australian Government uses to reduce inequality in the distribution of income, including the progressive tax system, welfare payments and the provision of merit goods. They analyse data to draw conclusions about the impact of these measures on income distribution.
This activity addresses how governments use budgetary measures to achieve equity in the distribution of income.
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Student learning resources
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Redistribution of income
Redistribution of income in Australia
Redistribution of income
Redistribution of income
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'.
- Put the following headings on the board:
- Income tax
- Welfare payments
- Merit goods
- Brainstorm examples of each.
- Discuss how these examples may assist in redistributing income.
- Students read the explainer. Encourage students to use the Cornell note taking system as they read.
- Ask students to add to the list on the board, or to provide examples of each measure (for example, the provision of schools, subsidised prescription goods, progressive income tax, JobSeeker payment).
- Students complete the data analysis worksheet. They will need to refer to the data sheet.
- Discuss how government budgetary measures can affect the distribution of income.
- Students complete the fact check. Allow students to use calculators or an Excel workbook.
- Invite students to share their conclusions. Discuss these and whether students were surprised by the result and why.