Tax Basics
What is taxation?
Money collected by the government from individuals and businesses
What is a budget?
A plan for managing income and expenses.
What does GST stand for?
Goods and Services tax
What's the difference between essential and non essential expenses?
Non essential are not necessary but essential are
What is the capital city of Australia?
Canberra
What are 5 things that taxes fund?
What is income?
Money that comes into a household or business, such as wages, sales, or investments, is called this.
Do businesses in Australia include GST in their prices? What is the exception?
Yes. Potential exceptions include:
- fruit and vegetables
- some Health Services
- some Educational facilities
What's the difference between these two situations?
Kayla and David both work at a grocery store and make the same amount every hour. Kayla has a child and David does not.
Kayla has to support her child and therefore has less money to spend on non essential expenses
How many continents are there?
7
What is the tax-free threshold in Australia for individuals?
$18,200
How do you calculate Disposable income?
DISPOSABLE INCOME = NET INCOME - ESSENTIAL EXPENSES
What do we call costs that reduce your taxable income?
Deductions
Troy spends $50 monthly on a gym membership, how much is he spending yearly on a gym membership?
50 x 12 = $600.00
What is the largest planet in our solar system?
This tax is taken directly from your paycheck to help fund government programs like Social Security and Medicare.
Income tax
How many legs does a spider have?
8
What extra cost must a business pay when hiring staff that funds their retirement?
Superannuation
If rent costs $1500, and Tammy makes $4700 a month, what % of her budget goes to rent?
1500/4700 = 0.319148936
0.319148936 x 100 = 31.9%
Which ocean is the largest?
Pacific ocean
What must a business keep to prove deductions to the ATO?
Proof of purchase e.g. receipts and records
What does it mean to "live within your means"?
Spending less than or equal to your income.
What is the difference between gross and net income?
Gross income is the total money earned before any expenses or taxes, while net income is the money left after all expenses and taxes are paid.
What is the monthly total of the following expenses?
Monthly groceries: $200.00
Monthly gym membership: $50.00
Monthly phone bill: $60.00
200 + 50 + 60 = $310.00
What is the longest river in South America.
Amazon River