HSC Together Year 11 Economics: The Redistribution of Income through Taxation and Government Spending

Economics

Back to other subjects

The Redistribution of Income through Taxation and Government Spending

An Overview of the Redistribution of Income

This post will help you to further your understanding of the redistribution of income through taxation and government spending, as part of your Prelim Economics course. In Australia, we have many progressiveregressive and proportional taxes, along with social welfare payments, that act as our redistributive mechanisms.

  • Progressive taxes charge lower rates for lower-income earners and higher rates for higher-income earners. An example of this is the Australian Progressive Income Tax System.
  • Regressive taxes are applied universally, taking a larger percentage of income from lower-income earners than from high-income earners. An example of this is the Australian Goods and Services Tax (GST).
  • Proportional taxes require the same percentage of tax from all taxpayers, despite their income levels.

Revenue gained from these taxes is usually redistributed in the form of social welfare payments to lower-income earners, in an attempt to improve the equitable distribution of income in Australia.

The video below explains the redistribution of income through taxation and government spending in more detail.

 

 

Want to learn more? Check out more of our Preliminary Economics resources here!

45,861 students have a head start...

Get exclusive HSC content & advice from our team of experts delivered weekly to your inbox!

Here’s how we help...

Holistic K-12 Tutoring

Attend our master-class workshops on how to ace your essays, assessments and exams!

Comprehensive Workshops

Attend our master-class workshops on how to ace your essays, assessments and exams!

AOS asset - Rocket

Study, Uni, Career Mentoring

Attend our master-class workshops on how to ace your essays, assessments and exams!

Senior School Workshops

Attend our master-class workshops on how to ace your essays, assessments and exams!

45,861 students have a head start...

Get exclusive study content & advice from our team of experts delivered weekly to your inbox!

AOS Website Asset 2

Looking for Academic Support?

Discover how we can help you!

AOS Website Asset 1