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Being honest is not always easy but the risks of being dishonest can have serious consequences. These range from losing a friend todamaging your reputation and your ability to get a job or losing freedom by having to go to prison. These outcomes affect social wellbeing, income and lifestyle, and family.  We need to think about the consequences of dishonesty - what happens to us if we are dishonest and get caught and how does it affect others?…

  Linked activity: Role of businesses in Australia’s taxation system

What does the income tax systems calculator do? Designing an income tax system This calculator allows you to adjust the number of tax brackets for individual income tax (from 1-5 tax brackets) and set the tax rate for each tax bracket. Figure 1 shows Australia’s income tax system which has 5 tax brackets.  Calculating government revenue from individuals income tax Once you have decided how many brackets and the tax rate at each bracket, the…

Part 1: Calculating tax Use the ATOs weekly tax table or the ATO app Tax withheld calculator to work out how much tax should have been withheld in the following scenarios. Income details Alex Bin Suzie Gross income for the week $321 $1,292 $851 Tax withheld Net weekly income…

What does the income tax systems calculator do? Designing an income tax system This calculator allows you to adjust the number of tax brackets for individual income tax (from 1-5 tax brackets) and set the tax rate for each tax bracket. Figure 1 shows Australia’s income tax system which has 5 tax brackets.  Calculating government revenue from individuals income tax Once you have decided how many brackets and the tax rate at each bracket, the…

Will I need super? The compulsory superannuation system started in 1992, so some people who are currently retired may not have superannuation. But now superannuation is compulsory, most of you will have superannuation when you retire. If you don’t, or your super balance is small, you may be eligible for the Age Pension, or a part pension. How much super will I need? How comfortably you live in retirement will depend on: how long you live…

There are several ways you can boost your super. A tax-effective way is through salary sacrificing, or by extending your retirement age. Find out these measures will affect you in the short and long term. Part 1: Contributing to super There are 2 tax-effective ways to boost your super Salary sacrifice – Your employer pays a portion of your before-tax income into your super fund. Personal super contributions – making your own contributions…

Part 1: Factors that impact retirement outcomes Use the moneysmart retirement planner to project the retirement incomes of the following people. Age when they began work Salary Retirement age Projected retirement income Projected retirement income if they salary sacrifice 7% to their super 18 $80,000 67 24 $80,000 67…