Participating and paying tax
Active citizens volunteer, join community groups and take part in political life. Paying tax is required by law, the ATO collects it, and taxes pay for services such as healthcare, education, defence and roads.
What to remember
- Active citizens volunteer, join community groups and take part in political life.
- Paying tax is required by law; the ATO collects it.
- Taxes fund healthcare, education, defence, roads and railways, and social security.
Sample questions
Which organisation collects tax in Australia?Show answer
- The Australian Taxation Office (ATO)
- Services Australia
- The Australian Electoral Commission
The Australian Taxation Office (ATO). Tax is paid out of the money you earn and is collected by the Australian Taxation Office (ATO).
What are taxes spent on in Australia?Show answer
- Only the salaries of politicians
- Services such as healthcare, education, defence, roads and railways, and social security
- Mainly on overseas businesses
Services such as healthcare, education, defence, roads and railways, and social security. Taxes are spent on services including government-funded healthcare and education, defence, roads and railways, and social security.
Is paying tax a legal requirement in Australia?Show answer
- No, it is voluntary
- Only for people who own a business
- Yes, it is required by law
Yes, it is required by law. Paying tax is an important way to contribute to the Australian community, and it is required by law.
Source: Australian Citizenship: Our Common Bond, p. 22. Read the full booklet on the Home Affairs website.