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Businesses, including sole traders, have a key role to play in Australia’s taxation system. They collect tax on sales, withhold personal income tax on behalf of their employees and pay instalments towards their own income tax and if they are companies, they pay tax on their profits. Collectively, these taxes represent the largest share of the government’s revenue (83%). Most businesses have a responsibility to pay and report income taxes and…

Goods and services taxHow to you pay it?The goods and services tax (GST) is a broad-based tax of 10% on most goods and services sold or consumed in Australia.When you buy goods or services, the GST is included in the price. Most receipts will tell you how much GST you paid.How is it calculated?You can calculate the GST you paid by dividing the total amount by 11. For example:$141.90 ÷ 11 = $12.90If you are a business owner who is registered for…

Part 1: Calculating GST Calculate the GST paid by customers on the following items. This grocery list does not include basic or fresh food, as these items are GST-free. You can use the GST calculator if you want. Item Amount paid (includes GST) GST paid Dog food $5.80 Cleaning sponges $2.50 Frozen pizza $5.90…

Who provides the services you use? All 3 levels of government in Australia work together to provide Australians with the goods and services they need. Although some responsibilities of the 3 levels of government overlap, table 1 shows that each level provides different services to Australians. Table 1: Services provided by the 3 levels of government Australian Government State or territory governments Local councils…

  Linked activity: What taxes do you pay and why?

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  Linked activity: Using a SWOT analysis to make a business decision

Paying the right amount of tax is important. If your employer does not deduct the right amount of tax on your behalf, you might end up with a tax bill at the end of the financial year. Your responsibility as an employee is to check your pay slip to see if the right amount of tax is being deducted. Review Maya’s pay slip below and identify how much she earned for the week and the year to date and how much tax was withheld from her pay for this…