The Budget: taxes and spending
History of tax in Australia
Role of the ATO
How often is the Australian Federal Budget prepared?
Every year
When did Australia become a nation?
Federation of the colonies and territories in 1901
What is the main role of the ATO?
To administer taxation and superannuation laws
What has to happen before the Australian Federal Budget can collect tax revenue and spend money?
The Budget must be presented to parliament and debated and approved by both Houses of Parliament
What tax power did the states and territories give up to the Australian Government after Federation?
The right to levy customs and excise duty
What is the main connection that most Australians have with the ATO?
Lodging their annual taxation return
What is meant by a surplus budget?
When government budgeted revenue is greater than budgeted expenditure in any financial year
Why did the Australian Government introduce federal income tax in 1915?
To help pay for World War I expenses
List three ways people can contact the ATO
1 Telephone enquiries 2 Email 3 Visit to ATO shopfronts
List in order the three highest sources of revenue in the Australian Federal Budget.
1 Individual income tax 2 Company tax 3 Sales taxes (including GST)
What does the Medicare levy pay for?
The Medicare levy pays some of the costs of health care.
Apart from taxation, what is another role the ATO performs?
One of the following: Superannuation, Cross-agency support with other government organisations, Supports the delivery of community benefits
List in order, the three highest areas of spending in the Australian Federal Budget.
1 Social security and welfare 2 General government services 3 Health
What major changes were made to the Australian taxation system in 2000?
A goods and services tax of 10% was introduced on most goods and services, and the business activity statement was introduced.
How does the principle of self-assessment work?
Self-assessment means: The ATO uses the information from the taxpayer to make an assessment. The ATO may later check the details with the taxpayer and against other sources of information. If someone has not declared all their income, or has made a claim for something they are not entitled to, they must pay the tax they owe and may have to pay a penalty.
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