Studied by 1 person
Course Objectives for Year 11 Economics ATAR
Government Revenue Highest to Lowest
Personal Income Tax, Company Tax, GST, Excise and Customs, Superannuation fund, Other, Non-Taxation
Direct Taxes
Applied to income
Indirect Taxes
Applied to expenditure
Government Expenditure highest to lowest
Social security and welfare, health, general revenue assistance, education, defence, Covid 19 response, public debt interest, transport and communication, other
Social security and Welfare
Just above 30%
Health
15% of total expenditure
General revenue Assistance
11.1% total expenditure (made mostly of GST)
Education
6.9% total expenditure
COVID 19 response
9.5% - 12.3% total expenditure
Taxation purposes
Redistribution of Income, influences resource allocations, regulates economic fluctuations
Impact
Where the tax is levied/collected
Incidence
Where the tax burden falls/who pays the tax
Progressive tax
As income increases, proportion of income tax increases
Example of Progressive Tax
Australian Income Tax
Proportional Tax
As Income increases, proportion of income tax stays the same
Example Proportional Tax
Australian Company Tax
Regressive Tax
As income increases, proportion of income tax decreases
Example Regressive Tax
GST and Excise Tax
Ad Valorem
Percentage of price tax (GST)
Sustainable Economic Growth
Capacity of economy to satisfy material wants, measured by GDP rate of change, better at 3-4%
Price Stability
Low rates of inflation, measured through CPI rate of change, better at 2-3%
Full Employment
Where everyone who is willing and able to work can find a job, measured through unemployment rates, better under 5%
Natural Rate of Unemployment
Frictional + Structural Unemployment, at about 4%
Equitable Distribution of Income + Welfare
achieved when other objectives achieved
How to achieve prosperity
Increasing Productivity and Efficiency
