• Taxation policy – philosophical considerations• Good tax design and tax policy• Players in Australia’s income tax system• Constitutional power of the Commonwealth• Commonwealth and State tax sharing arrangement• Sources of taxation law and relevant legislation
How Collected
Indirect
Levied on the transactions not people. The personal collecting the tax is generally not the same person that bore the taxGST - Stamp duty-
Direct
Levied on the person as a result of receiving accessible income from personal services, property or business.-Income Tax-Company Tax-Land Tax
Marginal Tax
Tax rate paid according to Incremental brackets
Average Tax
Average tax rate paid on overall income
Burden Falls
Progressive
Increases as the income of the tax payer increases. -Income tax
Regressive
Reduces proportional to the income of the tax payer. An example of Regressive tax is that of GST. Greater burden on low income earner than high income.
Proportional
Proportional Tax is a flat rate across all income earners regardless of income. Superannuation tax and company tax.
Democratic governments needs to raise revenue to govern effectively. Tax
Social and Merit Goods
Social Goods characterised by joint consumption and non exclusivity. eg. Street lighting, Public parks and amenitiesMerit Goods are deemed to be beneficial to there user. A merit good can be defined as a good that would be under consumed in a free market economy.This is due to two reasons.Merit goods produce positive externalities (third party spill over/benefit). eg. Inoculations, Often third party benefit greater than private benefit.Ignorance of the long term benefit of the good.
Social Welfare
Correction of free market imperfections
Economic purposes