Resource 2: tax models

This resource is for Years 5–6, Topic 3 – Collecting tax fairly, activity titled Tax models – worksheet and discussion.

Along with this accessible version, which you can either print or use online, we also have the same resource available as a PDF – Resource 2: tax models (PDF, 78KB)External Link

Regressive tax

A fixed amount or head tax (such as in the Bilby scenario where each citizen paid $2,000 regardless of their income). An example in Australia of a regressive tax is motor vehicle registration.

Proportional tax

A fixed percentage which is the same for everyone. The goods and services tax, which is currently 10% is an example of proportional tax, as is company tax.

Progressive tax

A tax that takes a larger percentage from high-income groups than from low-income groups. This is applied to income tax in Australia.

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