Participating in society & tax
Australian citizenship test study notes, summarised from page 22 of Australian Citizenship: Our Common Bond, the official booklet the test is based on.
- Active citizens join community organisations, volunteer, join arts/cultural groups and participate in political life.
- Paying tax is required by law. Income tax is collected by the ATO; there are also taxes on goods and services.
- Taxes fund healthcare, education, defence, roads and railways, and social security. State/territory governments and local councils also collect taxes.
Our Common Bond, p. 22
Sample practice questions
Try these, then check your answer. They’re our practice questions, not the real test questions.
1. Which organisation collects tax on the money people earn?
- The Australian Electoral Commission (AEC)
- The Australian Federal Police (AFP)
- The Australian Taxation Office (ATO)
Show answer
Answer: C. The Australian Taxation Office (ATO)
Tax is paid out of the money you earn and is collected by the ATO.
Our Common Bond, p. 22
2. In Australia, tax is paid out of money earned from…
- a job, a business or investments
- a job, but not a business or investments
- investments, but not wages from a job
Show answer
Answer: A. a job, a business or investments
Tax is paid out of the money you earn, whether it is from a job, a business or investments, and is collected by the ATO.
Our Common Bond, p. 22
3. What is social security?
- Government pensions or benefits to help unemployed, disabled, elderly and others in need
- Private insurance that workers buy to protect their income if they lose their job
- A government savings account that workers must pay into for their retirement
Show answer
Answer: A. Government pensions or benefits to help unemployed, disabled, elderly and others in need
Social security means government pensions or benefits to help people in need.
Our Common Bond, p. 43
Practise all 11 questions on this topic