Federal Budget

Question 1

Main source of tax

Answer 1

Income tax

Question 2

Person who puts it all together

Answer 2

Treasurer

Question 3

Main area of spending

Answer 3

Welfare

Question 4

Expenditure

Answer 4

Government spending on items such as pensions, education, health & defence

Question 5

Revenue

Answer 5

Tax collections (income tax, company tax and GST)

Question 6

Calendar Year

Answer 6

Jan 1st -> Dec 31st . 12 month period. Most things operate during a calendar year

Question 7

Financial Year

Answer 7

July 1st -> June 30th. 12 month period

Question 8

Different types of revenue

Answer 8

Income tax- up to $18,200 is tax free
Company tax- Payd on profits only around 30%
GST(Goods &bServices Tax)- at 10%

Question 9

Where does most revenue come from?

Answer 9

Income tax

Question 10

Tax cuts?

Answer 10

1 1/5% decrease in company tax

Question 11

Where does the money go?

Answer 11

Social security- age pension, the doll (unemployment benefits), disability payments

Question 12

Which expenditure sections have increased since last year?

Answer 12

More money has been put into childcare, and spending on anti-terrorism

Question 13

Overall message in thus year’s budget

Answer 13

By encouraging small business’ to grow the government aims to boost the economy

Question 14

Who is responsible for preparing the 2014 Federal Budget?

Title, name, political party

Answer 14

The federal treasurer is in charge of the federal budget.

Question 15

2 greatest sources of revenue

Answer 15

Rising unemployment and lower business activity

Question 16

2 largest areas of expenditure

Answer 16

Government trying to stimulate the economy as a result of the global financial crisis

Question 17

Surplus

Answer 17

Surplus- when expected receipts are greater than expected outlays

Question 18

When government would use budget deficit

Answer 18

if it wanted to increase ecenomic activity (if there was recession) by pumping money into the economy

Question 19

Budget Deficit

Answer 19

When expected receipts are less than expected outlays

Question 20

Balanced Budget

Answer 20

When expected receipts are equal to expected outlays.

Question 21

When would the government use budget surplus?

Answer 21

if it wanted to reduce the level of economy activity (if the economy was very strong, and running at full capacity with inflationary pressures)