The goods and service tax

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: GST and how it works

1. Play: Goods and services tax (GST). This video explains what the GST is and how it works.
2. Use a grouping strategy to organise students in groups of 3 or 4.
3. Groups construct a brief definition of GST and an explanation of how it works. Each group writes their definition and explanation on the board.
4. When all definitions and explanations are displayed, discuss the concept of GST and develop a simple class definition and explanation.

Part B: Calculating GST

1. Explicitly teach students how to calculate GST from both the GST exclusive price and the GST inclusive price (that is, working forwards and backwards). Calculating GST at 10 percent – How-to-sheet might be a helpful resource for students.

   You might like to get students to complete a table like this one as a practice activity:

   Price (excluding GST)	GST	Price (including GST)
   $20.00
   		$20.00
   		$2,500.00
   $2,500.00
   		$300.00
   $300.00
   $90.09
   		$90.09
   $45.91
   		$45.91

2. Students complete part 1 of the worksheet.

Part C: Investigating GST, profit and profit margins

1. As a class, read through part 2 of the worksheet. If necessary, use examples to demonstrate how to calculate profit, profit margins and percentage increase and decrease.
2. If students need support in setting up spreadsheets, display and explain how to use spreadsheets using the Using spreadsheets – Visualiser.
3. Reinforce learning by modelling the process of setting up an excel spreadsheet using the following scenario. If you’re all working together on this, everyone will need access to a computer with spreadsheet software.
   You work in an outdoor store and one of your tasks is to price items. The store wants to sell its down jackets for $118, beanies for $11, hiking shoes for $145 and backpacks for $46. How much GST do they need to add to each one and what will the final price on the price tag be?
   Refer students to Making an Excel spreadsheet using GST as an example – How-to-sheet if needed.
4. Students complete parts 2 and 3 of the worksheet.
5. Walk students through the investigation instructions, reminding them of the similarities to the problem you modelled.
6. Students complete the investigation. Students may benefit from working individually and/or in small discussion groups.
7. As a class, discuss students’ findings.