Ask a question from expert

Ask now

Resident Campus: Assessment Title

4 Pages1212 Words37 Views
   

Added on  2020-02-24

Resident Campus: Assessment Title

   Added on 2020-02-24

BookmarkShareRelated Documents
Name: Student Number: Resident Campus: Assessment Title:Lecturer Name:Submitted On:Sources:
Resident Campus: Assessment Title_1
IntroductionIn an economy there are number of taxes imposed on industries, organizations, individuals etc. By imposing such taxes the government of particular country generates revenue to undertake various activities of development. Broadly there are two types of taxes namely: Income tax and GST. In Australia currently GST is charged on almost every good and services at a rate of 10%[ CITATION phi14 \l 1033 ] and Income tax in Australia is charged at different rates. In Australia income taxes are as high as 22.78-30.13%, if an individual is earning a sum of $87,001-$18, 0,000. If an individual is earning $18,201-$37,000 then the person is liable to pay taxes of 0-9.5% on his income. Now if we see this difference between the tax charged under GST and the taxes charged under income tax has a huge difference. In this project, we are going to study about the GST & Income tax in detail.Critical analysis What do you mean by GST? GST is good and services taxes that are levied on most of the goodsand services in Australia at a rate of 10%. GST was implemented in taxation structure ofAustralia in the year 2000. Now if talk about Income tax, these are the taxes that an individual,firm, organization needs to pay on the income earned by them in a year. If we compare GST andIncome tax of Australia then we will see a huge difference in the rate of both of these taxes.Where GST is as high as 10% only, Income tax may reach up to 45% on the earnings of theindividuals or firms. Most of the population in Australia is in favor of increasing GST, in orderto lower the rates of personal income tax[ CITATION Ala09 \l 1033 ]. Increasing GSTNow firstly we will discuss if that happens, how it is going to affect the Australian economy in agood way. GST is levied on goods and services, and goods and services are bought by everyone.GST is payable by its end users hence it is really difficult to avoid such taxes[ CITATION Tho17 \l1033 ]. In Australia if the rate of GST is increased even by 5-8%, it is going to benefit thegovernment in a very good way. Goods and services are the need of everyone; no one can livewithout goods and services. Even the poorer of the peoples manages to buy goods or services(food, clothes) etc. So when an individual or anyone in an economy buys goods or services, theybecome liable to pay GST on the services or the goods acquired[ CITATION gho17 \l 1033 ]. Now ifwe talk about Income taxes, Australian government does not charge anything from an individualwho is earning $1-$18,200 in a year. Now the people falling under this bracket are not supposedto pay any taxes. However these peoples are liable to pay GST. When an individual works hard
Resident Campus: Assessment Title_2

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Tax Theory, Practices and Laws
|9
|2824
|62

TAXATION, THEORY, PRACTICE AND LAW
|9
|2331
|191

Taxation Theory, Practice and Law - Desklib
|10
|3348
|183

Australian Tax Law - Income Deduction, FBT, GST, CGT, Anti-Avoidance Provisions and Income Administration
|13
|2820
|137

Tax Theory, Practices and Laws Assignment on GST and Capital Gain Tax
|9
|2450
|106

Taxation and Revenue Law: Direct and Indirect Tax, IT Act, Residency, Capital Gain, and Loss
|14
|4139
|87