Taxes and the redistribution of income

Economics Senior secondary 80

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Introduction

Students learn about some of the main types of taxes that the Australian Government levies. They also calculate the average rate of tax to determine whether different taxes are progressive, proportional or regressive and make a recommendation to the government on how GST could be made a fairer tax.

This activity addresses several aspects of economic curriculums across all states and territories. In particular, it addresses the difference between progressive, proportional and regressive taxes.

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Student learning resources

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Explainer

Tax types

 
Worksheet

What type of tax is this?

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.

  1. Introduce the topic by explaining that students will consider the main types of taxes in Australia and will explore how these taxes impact equity in the distribution of income.
  2. Students read the explainer. Encourage students to use the Cornell note taking system as they read.
  3. Think-pair-share: Is GST is a proportional or regressive tax? Explain using real-life examples.
  4. Students complete the worksheet. They should be allowed to use calculators.
  5. Students share their solutions on how they would make GST more progressive, justifying their choices.
  6. Record student responses on the board.
  7. Use a grouping strategy to organise students into groups of 4.
  8. Groups decide on the most effective strategies from those listed on the board. They can only choose 6.
  9. Tally student votes to decide on what advice the class would provide to the government.

Useful prior learning