Types of taxes
What is the rate of GST in Australia that is levied on most goods and services?
10%
What are the three different types of tax that can be shown on a diagram?
Regressive, proportional and progressive
What is the indicator used to measure the distribution of income in an economy?
Gini coefficient
What is the government's target for price stability?
¡Desirable target is 2-3 per cent over the business cycle
What does FBT stand for?
Fringe Benefit Tax
income tax, customs duties, FBT, fuel excise, GST
What is the second largest source of revenue for the Australian Government?
Company tax
What does a Gini coefficient of 1 mean?
One household has all income
Which institution is responsible for fiscal policy / the government budget?
The Australian Treasury
List three things the federal government is responsible for.
defense, foreign affairs, international trade, banking regulation and welfare
What is the impact of a tax?
The impact of a tax refers to the unit on whom the tax is placed.
Approx. how much did the government spend on social security and welfare in the 2023-24 Budget?
$250 billion
Identify two examples of investments that can be used to store wealth.
property, shares, collectables, superannuation
What is the independent institution responsible for monetary policy?
Reserve Bank of Australia
Give an example of a direct tax.
Income tax, company tax, capital gains, FBT, MRRT,
What is the incidence of a tax?
The incidence of the tax refers to the group who bears the burden.
identify two goods that the excise duty is levied upon
alcohol, cigarettes, oil and gas
Define wealth
The assets a household has accumulated over time (savings, investments and inheritance)
What is the target for the government's objective of 'efficient allocation of resources'
There is no target for this objective
Describe a regressive tax
¡Rate of tax reduced as income rises (e.g. consumption tax)
What is an indirect tax?
An indirect tax is where the incidence and impact are separate and this is commonly taxes on expenditure.
The excise duty is _______ and ______
indirect and regressive
Define the Lorenz curve
The Lorenz curve charts the cumulative proportion of the population, ranked by income, against their cumulative share of income.
The natural rate of unemployment is made up of which two types of unemployment?
Frictional and structural
What is the colloquial name for a tram in Hong Kong?
A 'ding ding'