• ### Resource 3: different tax models worksheet

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 3: Different tax models worksheet (PDF, 127KB)External Link.

#### Darwin's tips

When the class is asked to calculate percentages without using a calculator, Darwin is always the first to answer. Read his tips and see if they help you:

• 'I always begin with the easiest percentage to calculate – which is 10%. Because 10% is one-tenth of a number, I remove one zero: 10% of 20,000 = 2,000.'
• 'If I have to find a different percentage, like 20%, I start with the answer for 10% then double it because 20 is 2 × 10: 10% of 20,000 = 2,000 so 20% of 20,000 is 2,000 × 2 = 4,000.'

#### Regressive tax

An example of a regressive tax is motor vehicle registration.

If registration for each vehicle is \$500, how much does each person in the table below have to pay for motor vehicle registration? Complete the blanks in the table below.

Motor vehicle registration worksheet

Individual

Number of cars

Total amount of tax paid

Indigo

0

Leonora

1

Burnie

3

Is regressive tax a fair tax for motor vehicle registration? Why/Why not?

How do you think the state government spends motor vehicle registration fees?

#### Proportional tax

An example of proportional tax is the Goods and Services tax (GST)

If GST is 10%, how much does each person pay each year in GST? Complete the blanks in the table below:

GST worksheet

Individual

Yearly spending on goods and services that are subject to GST

Total amount of tax paid

Indigo

10,000

Leonora

20,000

Burnie

50,000

Is proportional tax a fair tax for the goods and services we buy? Why/Why not?

#### Progressive tax

An example of progressive tax in Australia is income tax

Calculate the amount of tax paid by each person in the following table:

Progressive tax worksheet

Individual

Yearly income

Percentage of income paid in tax

Total amount of tax paid

Indigo

\$15,000

0%

Leonora

\$50,000

20%

Burnie

\$200,000

30%

Is progressive tax a fair tax income? Why/Why not?

#### Total tax paid

Calculate the total tax paid by each citizen

Total tax paid worksheet

Individual

Motor vehicle registration

GST

Income tax

Total tax paid

Indigo

Leonora

Burnie

How much does each person have left each year after paying tax?

Is the total amount of tax paid by each citizen fair? Why/Why not?

How much does each person have at the end of each week after all taxes are deducted?

Is the total amount of tax paid by each citizen fair? Why/why not?