Income tax in Australia
Okay, so you know how you get pocket money from your parents sometimes? Well, when grown-ups make money from their jobs or businesses, they have to pay some of that money to the government to help pay for things like schools, hospitals, roads, and police. This is called income tax.
In Australia, everyone who makes money from working or running a business has to pay income tax. The amount of tax you have to pay depends on how much money you make. This is called a tax bracket. The more money you make, the higher your tax bracket and the more tax you have to pay.
But don't worry, it's not all bad news. There are also some things you can do to reduce the amount of tax you have to pay, like claiming deductions for things like work expenses or donations to charity.
At the end of each financial year (which is from July 1 to June 30), you need to tell the government how much money you made and how much tax you paid. This is called a tax return. If you paid too much tax, you can get some of it back as a refund. And if you didn't pay enough tax, you'll need to pay the difference.
So, basically, income tax is a way for the government to collect money from people who make money so they can use it to pay for things that help everyone in the country.
In Australia, everyone who makes money from working or running a business has to pay income tax. The amount of tax you have to pay depends on how much money you make. This is called a tax bracket. The more money you make, the higher your tax bracket and the more tax you have to pay.
But don't worry, it's not all bad news. There are also some things you can do to reduce the amount of tax you have to pay, like claiming deductions for things like work expenses or donations to charity.
At the end of each financial year (which is from July 1 to June 30), you need to tell the government how much money you made and how much tax you paid. This is called a tax return. If you paid too much tax, you can get some of it back as a refund. And if you didn't pay enough tax, you'll need to pay the difference.
So, basically, income tax is a way for the government to collect money from people who make money so they can use it to pay for things that help everyone in the country.