Task A2.1 Types of taxes: income tax

Step 1 of 2

The task is based on an example of a progressive tax structure. The table shows the amount of tax paid by four taxpayers who have different levels of income.

 

Taxpayer A

Taxpayer B

Taxpayer C

Taxpayer D

Taxable income ($)

10,000

35,000

50,000

95,000

Income tax (tax paid to nearest dollar)

0

3,192

7,797

23,097

Tax as percentage of taxable income

NA

9.1%

15.6%

24.3%

Look at the table or charts; What happens to the rate or proportion of tax paid as a person earns a higher income?

The proportion stays the same.

The proportion decreases.

The proportion increases.

  • Fact 25

    The first computers used by the ATO were used primarily for issuing the five million refund cheques sent out each year in the mid 1960s.

Preservation age

The minimum age when an individual can access their super benefits.

read more glossary terms