Module 6: Taxation - everyone pays

Students should be able to:

• identify their taxation rights and obligations as Australian citizens or residents
• appreciate the purpose of taxation
• recognise different forms and rates of taxation
• consider the effect the goods and services tax (GST) has on consumers
• understand how the Higher Education Loan Program (HELP) operates and who it affects.

• Payment of taxes on income and spending is a legal requirement in Australia.
• Income tax is only one aspect of a citizen’s taxation commitment.
• The Australian Taxation Office (ATO) administers government taxation policies.
• There are strict rules governing what is considered assessable income and what may be allowable deductions to reduce assessable income.
• A key component of the assessment process is the completion and lodgement of an income tax return.
• A TFN (tax file number) is a unique number issued to individuals by the ATO.
• There are strict rules governing what is considered assessable income and what may be allowable deductions to reduce assessable income.
• Study at university may incur a HELP (Higher Education Loan Program) liability that will need to be repaid through the taxation system at a later date.
• Governments redistribute income through taxes.

assessable income
ATO
audit
avoidance
BAS
beneficiary
capital gains tax
commonwealth government
consumer
clarify
deduction
elaboration
employee
employer
exempt
federal government
financial year
flat taxation rate
FBT
Graduate
GST
HECS
HECS-HELP
HELP
income
income – earned
income – passive
Individual Tax Return Instructions Supplement
legal
legitimate
marginal tax rate
Medicare levy
offset
pay – gross
pay – net
PAYG
PAYG payment summary
postgraduate
progressive tax
penalty
profit
qualification
refund
self-assessment
substantiate
superannuation
tax evasion
tax file number
tax free threshold
tax invoice
tax offset
tax return
taxation
tertiary
TFN
transfer payment
undergraduate

Download the complete curriculum mapping notes for this module.