What is Taxation
Taxation can be defined as the compulsory contribution to state government, provided by the additional cost on workers income and business profits, or added to the cost of some goods, services and transactions.
What is it used for?
Taxes are spent on a wide variety for things, much of this money is used to improve the wellbeing and quality of Australian lives.
The taxes you pay are used for:
• Law and order
• Culture, media and sport
• Trade and industry
• Environment, food and rural affairs overseas development and defence.
How is it collected?
Income tax is collected in the amount when the employer is paid (gross income) and then money is taken off and left with income (net income). It also comes off in the goods and services Australians pay for, GST is 10% of the original price of the product.
How is it collected: Income tax is collected in the amount when the employer is paid (gross income) and then money is taken off and left with income (net income)
Advantages and Disadvantages
• Tax money will go to fixing infrastructure, schools, free meds etc.
• helps fund programs that help the poor
• discourages businesses
• increase government control
• penalise hard work