The Budget: taxes and spending
History of tax in Australia
Role of the ATO

100

How often is the Australian Federal Budget prepared?
Every year

100

When did Australia become a nation?
Federation of the colonies and territories in 1901

100

What is the main role of the ATO?
To administer taxation and superannuation laws

200

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

200

What tax power did the states and territories give up to the Australian Government after Federation?
The right to levy customs and excise duty

200

What is the main connection that most Australians have with the ATO?
Lodging their annual taxation return

300

What is meant by a surplus budget?
When government budgeted revenue is greater than budgeted expenditure in any financial year

300

Why did the Australian Government introduce federal income tax in 1915?
To help pay for World War I expenses

300

List three ways people can contact the ATO
1 Telephone enquiries 2 Email 3 Visit to ATO shopfronts

400

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)

400

What does the Medicare levy pay for?
The Medicare levy pays some of the costs of health care.

400

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

500

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

500

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.

500

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.