Lesson 10 - What is tax? Flashcards
What is the primary purpose of tax?
To fund government services and infrastructure.
True or False: All taxes are voluntary in Australia.
False.
Fill in the blank: The Australian tax system is primarily governed by the _______.
Income Tax Assessment Act.
What is GST in the context of Australian taxation?
Goods and Services Tax.
Which level of government in Australia primarily collects income tax?
Federal government.
Multiple Choice: Which of the following is NOT a form of tax in Australia? A) Income Tax B) Land Tax C) Sales Tax D) Profit Tax
D) Profit Tax.
What is the standard GST rate in Australia?
10%.
True or False: Tax evasion is legal in Australia.
False.
What is the role of the Australian Taxation Office (ATO)?
To administer and enforce tax laws.
Fill in the blank: Taxpayers in Australia are required to lodge their tax returns by _______.
31 October.
Short Answer: Name one type of tax that is levied by state governments in Australia.
Stamp duty.
Multiple Choice: Which tax is applied to capital gains in Australia? A) Capital Gains Tax B) Inheritance Tax C) Wealth Tax D) Income Tax
A) Capital Gains Tax.
What is the tax rate for companies in Australia as of 2023?
30% for large companies and 25% for small companies.
True or False: Tax deductions reduce the amount of taxable income.
True.
Short Answer: What is a tax offset?
A reduction in the amount of tax payable.
