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On 27 July 2015, the then Federal Treasurer Joe Hockey claimed in an interview on ABC RN Breakfast that: ’50% of all income tax in Australia is paid by 10% of the working population’. The table below shows the amount of tax paid by each decile in 2014–15. Set up a spreadsheet to calculate the percentage of total income tax revenue paid by each decile. Was Joe Hockey’s assertion correct? Discuss how statistics can be used to test assertions in…

A map of the local area (e.g. Google maps) 

Australia has an ageing population which means that there will be increasing pressure on the welfare system and less taxation revenue.Factors that may influence retirement outcomesThere are more retirees; the number of people over age 64 will more than double by 2055. This will put pressure on Australia’s welfare system.There are fewer workers; there will only be 2.7 working people to support each person over age 64 in 2055, compared to 4.5…

Your task is to work in pairs to research a superannuation policy and evaluate its effectiveness in improving equity in the distribution of income and wealth. Possible policy options include: superannuation guarantee (SG) government super co-contribution low income super tax offset (LISTO) changes to superannuation in the 2016–17 Budget, 2017–18 Budget, or a more recent budget. Present your material to your class as a 5-minute…

Each year, the Australian Government outlines how it will collect (receipts) and spend the money it receives (outlays) in its federal Budget.Government revenue (receipts)The Australian Government has 3 sources of revenue:direct taxesindirect taxesnon-tax revenue.The relative significance of the Australian Government’s revenue sources is shown in figure 1.Image: Donut chart showing the sources of Australian Government revenue in 2019–2020. At 45.…

Your teacher has provided your group with a proposal to change the current taxation system. Brainstorm the likely impact of the proposal on the core principles of a good taxation system: equity efficiency simplicity. Predict the likely effects of the proposed change on aggregate supply. Analyse how this policy change is likely to influence the Australian Government’s domestic macroeconomic goals and living standards. Evaluate the…

To answer the following questions, refer to The Budget: receipts and outlays – Explainer. Government receipts What are the most significant sources of revenue for the Australian Government? Categorise Australian Government sources of revenue into direct and indirect taxes (note ‘other taxes’ are indirect taxes). Record the percentage of total revenue for each tax. Calculate the share of total revenue for both direct and indirect taxes…

Budgetary policy (or fiscal policy) is the Australian Government’s use of its annual Budget to affect the level of economic activity, resource allocation and income distribution. Budgetary policy as a macroeconomic policy The 2 main instruments of budgetary policy are government spending (G) and taxation (T). Changes to the level and composition of either of these can impact on aggregate demand and the overall level of economic activity (as…