Analysis of 2014 Taxation Returns in Australia

COVER PAGE

Table of Contents
1. Executive Summary............................................................................................... 3
2. Introduction............................................................................................................ 3
3. Analysis.................................................................................................................. 4
3.1 Descriptive statistics......................................................................................... 4
3.2 Confidence intervals.......................................................................................... 9
3.3 Hypothesis testing........................................................................................... 10
3.4 Correlation and regression.............................................................................. 10
4. Conclusion............................................................................................................ 11
Appendix.................................................................................................................. 13

1. Executive Summary
This report summarizes the statistical results of the 2014 taxation returns in
Australia. The method of analysis includes use of descriptive statistics,
graphs, hypothesis testing, and regression analysis. Detailed calculations are
included the appendices.
Results of data analyzed reveal that majority of tax returns are lodged by
males. Despite the controversial topic that male workers earn more than
female workers, the data shows there is no significant difference in the
average taxable income between males and females.
Additionally, returns are mostly lodged by individuals over age 20 and there
is no relationship between age range and taxable income for each lodgment.
In 2014, the average taxable income was $49,680; however majority of the
population received a taxable income of less than $30,000.
The report also finds the average salary amount for agent lodged returns lies
between $37,645.98 and $61,442.66. In addition, the average work-related
deductions for all sample lodgments lie between $524.97 and $1,646.20.
The report also shows that some occupations such as professionals earn
more income than others e.g. technician and trade workers.
2. Introduction
The purpose of this report is to provide an analysis of taxation returns of
individuals lodged from a selected area of Australia. It will cover the
following:-
 Describe the characteristics of the sample
 Estimate a confidence intervals for the average salary or wage amount
for agent lodged returns only

 Estimate a confidence interval for the average work-related deductions
for all sample lodgments
 Test whether professionals earns more on average than technicians
and trades workers
 Test whether the average taxable income, differs for males and
females
 Investigate the relationship between the two variable namely taxable
income and the age range
The data used is taxation data for the year 2014. It is supplied by the ATO
and is based upon the taxation returns of 2338 individual lodgments in a
selected area in Australia. The table can be obtained from ATO website.
To perform the analysis above, a random sample of 60 will be selected out
of the 2338 individual lodgments (see Appendix A). Statistical methods will
then be used for the analysis. This will include the use of descriptive
statistics, graphs, hypothesis testing, and regression analysis.
3. Analysis
3.1 Descriptive statisticsa) Gender
Based on our sample data, 35% of the returns are lodged from females,
whereas 65% are lodged from males.