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Economics of the Australian Government

Economics of the Australian Government. Australian Budget 2014-2015. The Australian Government is much like a business: They have money coming in called: INCOME & They have money going out called: EXPENSES. Surplus or Deficit.

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Economics of the Australian Government

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  1. Economics of the Australian Government

  2. Australian Budget 2014-2015 The Australian Government is much like a business: They have money coming in called: INCOME & They have money going out called: EXPENSES

  3. Surplus or Deficit Governments are obliged to add up their income for the tax year and deduct their expenses from this figure. The end result will be either a: • Surplus (in the positive) • Deficit (in the negative)

  4. Surplus or Deficit Australia’s tax year begins on 1st July 2014 and concludes at 30 June 2015. Income for year $1,000 Less: Expenses for year $600 = Surplus for year $400

  5. Surplus or Deficit Income for year $600 Less: Expenses for year $1000 = Deficit for year $400

  6. Income How much do you think the Australian Government earns per year?

  7. Answer Income $266,200,000,000

  8. Income What is the main way the Australian Government earns it’s income?

  9. Answer: Individuals Income Tax = $183,000,000,000 Company Tax = $75,300,000,000 Superannuation Tax = $7,900,000,000 Total of these three areas of income $266,200,000,000

  10. Expenses How much do the Australian Government spend?

  11. Answer: Expenses $442,029,000,000

  12. Expenses So what does the Australian Government spend this money on?

  13. Answer: Social servicing $130,320,000,000 Treasury $120,980,000,000 Defense $59,053,000,000 Health $48,413,000,000 Education $33,443,000,000

  14. Surplus or Deficit Do you think the Government will make a surplus or deficit in 2014?

  15. Answer: Income $412,229,000 Less: Expenses $442,029,000 Deficit $29,800,000,000

  16. Job losses What are some reasons mass jobs could be lost?

  17. Reasons for job losses Factory closures Unable to compete with overseas No need for product Badly managed

  18. Reasons for job losses Natural Disasters Flooding Storms Extreme heat or cold Cyclones

  19. What do you think will happen if jobs are lost?

  20. Answer: 1. Less income tax being paid to the government 2. More social service payments being made by the government 3. Less spending on goods and services in Australia 4. Higher prices for goods and services 5. More crime

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