YEARS: 7–8, 9–10
Gen Fricker makes income tax interesting!
Learn about income tax — what it is, how it works and when you have to pay it. Easy-peasy!
Then test yourself with ASIC Moneysmart's "Things to think about" classroom exercises.
Things to think about
- 1.List what you know about the tax system in Australia. List how the government uses money from tax.
- 2.List some of the terms that you hear in the video. For example: Income tax, tax rates, brackets, deductions, ATO, uni loan (HECS), levies. Are there any terms from above that are unclear and need to be investigated further?
- 3.
Use the ASIC Moneysmart Income tax calculator to complete the following exercises:
Q1: Claire earns $52,000 per annum. Use the income tax calculator and record: (a) how much tax she pays (b) how much she pays for the Medicare levy (c) her income after tax.
Q2: (a) Using your answers from Question 1, calculate the difference between Claire’s taxable income and her income after tax. (b) Claire can deduct a percentage of her travel expenses from her taxable income. Her total travel expenses are $2,600, which she keeps a record of in her travel diary. She can deduct 15% of her travel expenses from her taxable income. Calculate her final taxable income and her income after tax.
Q3: Claire is entitled to a tax refund. She receives $2000 from the ATO and decides whether to spend, save, invest or donate it. What would you do if you had a tax refund? Why?
Teachers
ASIC Moneysmart teaching:
- Year 7 -10: Savvy solutions to consuming questions
- Year 9: How can we obtain more money?
- Year 9 & 10: Be Moneysmart (Module 2) – Personal Tax
- From the Australian Tax Office (ATO): Tax, Super and you
Acknowledgements
The learning materials provided with this video were created by ASIC Moneysmart.
Production Date: 2019
Copyright
Metadata © Australian Broadcasting Corporation 2020 (except where otherwise indicated). Digital content © Australian Broadcasting Corporation (except where otherwise indicated). Video © Australian Broadcasting Corporation (except where otherwise indicated). All images copyright their respective owners. Text © Australian Broadcasting Corporation and ASIC.