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As entrepreneurs, you are going to open a hypothetical dog-walking business. Entrepreneurs assume risks and then keep track of income and expenses to inform decision-making and fulfil legal requirements. In your groups, decide on a name for your business and how much you will charge per dog per 10 minutes. Scenarios Day of the week Number Activity Monday 1. Bought 2 new leashes at $20.00 each. Tuesday 2.…

Everyone is different. Some people are natural savers, some are natural spenders and others are somewhere in between. Read the following profiles of young people your age. Profile 1: Tim parents give him $20 pocket money each week. He spends $30 a month on a pre-paid phone, and if his credits expire, he waits for the next month to arrive before he tops up. He also budgets $20 a month for entertainment. His parents buy his clothes, but he…

Income taxAustralia has a progressive tax system. This means that the more people earn, the more tax they pay and the bigger contribution they make to government services. The tax rates for different incomes in 2024-25 is shown in the table below. For the most recent tax rates, visit ato.gov.auTable 1: Resident tax rates 2024-25Taxable incomeTax on this income0 – $18,200Nil$18,201 – $45,00016c for each $1 over $18,200$45,001 – $135,000$4,…

Part 1: Calculating taxUse the ATOs weekly tax table or the ATO app Tax withheld calculator to work out how much tax should have been withheld in the following scenarios.Income detailsAlexBinSuzieGross income for the week$321$1,292$851Tax withheldNet weekly incomeSuzie works for 25 hours a week during the school holidays. She earns $651 a week for 10 weeks of the year. The other weeks of the year, she earns $220 per week (for 42 weeks).How much…

Cash wages and tax When you are employed, it’s important you understand your rights in relation to tax. Some employers pay their workers cash-in-hand rather than into a bank account. There is nothing wrong with being paid in cash as long as your employer reports the payment as income. Some employers deliberately use cash transactions to avoid meeting their tax and employee responsibilities, which is a crime. It threatens the revenue our…

Decide whether the following individuals should report their employers and why. Scenario Should report using the tip-off form For each situation that should be reported, explain why. 1. Jay works at a local café. His employer pays him cash-in-hand for every hour he works. His earnings are not reported to the ATO.   yes no 2. Each week Niguel works at…

If you are employed you have both rights and obligations in relation to tax and you should know what these are. The table below outlines your rights and obligations beginning from the time you start a job to when you have to lodge a tax return. Stage Rights and entitlements Obligations and responsibilities Starting a job Everyone is entitled to a tax file number (TFN) Apply…

  Linked activity: The taxation system and the principle of honesty (AC v9.0) Using a SWOT analysis to make a business decision (AC v8.4)