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Participating in Australian society · 1 min read

Participating in Australian society

Australia encourages all citizens to actively participate in society. Active citizens take on the responsibility and privilege of shaping Australia’s future. For example, you can join neighbourhood and local community organisations, volunteer to do social and community work, join an arts or cultural organisation, and actively participate in political life.

Paying tax is another important way you directly contribute to the Australian community and is required by law. 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. There are also taxes on many goods and services. The ATO works to ensure all citizens are aware of their tax rights and obligations to pay the correct amount of tax.

Many of the benefits that Australians enjoy are made possible through taxes. Taxes are spent on services including government-funded healthcare and education, defence, roads and railways, and social security.

By working and paying taxes, you support the government to provide these important services to the Australian community. State and territory governments and local councils also collect taxes to pay for services. These services help make Australia the peaceful and prosperous country it is today.

Test yourself on this topic

10 questions on this topic, each with the answer explained.

  1. 1. A new citizen wants to contribute to the community and also meet a duty set by law. Which action does both?

    • Paying tax on the money they earn
    • Volunteering with an arts organisation
    • Taking an active part in political life
    • Joining a neighbourhood community group

    Explanation: Volunteering and joining groups are valuable but voluntary. Paying tax both contributes to the community and is required by law.

  2. 2. Apart from the money people earn, what else is taxed in Australia?

    • Many goods and services
    • Letters sent within Australia
    • Visits by family from overseas
    • Places in public schools

    Explanation: As well as income, many goods and services carry tax when they are bought.

  3. 3. Besides the Australian Government, who else collects taxes to pay for services?

    • Banks, insurers and private investment companies
    • State and territory governments and local councils
    • Charities and volunteer community organisations
    • Community, cultural and sporting organisations

    Explanation: Taxes are collected at more than one level of government: states, territories and local councils also raise money for the services they provide.

  4. 4. Tax is paid out of money you earn from which of the following?

    • A job, a business or investments
    • Only money earned outside Australia
    • Only profits made by large companies
    • Only wages from a full-time job

    Explanation: Income tax applies to earnings from work, from running a business and from investments, not just to wages.

  5. 5. What do active citizens in Australia take on?

    • The duty of representing the Australian government overseas
    • The right to write and pass new laws in the federal parliament
    • The job of collecting all taxes on behalf of the government
    • The responsibility and privilege of shaping Australia's future

    Explanation: Taking part in community and political life is described as both a responsibility and a privilege, because it helps shape the country's future.

  6. 6. What does the ATO work to make sure of?

    • That citizens pay as little tax as possible
    • That citizens are enrolled to vote
    • That citizens know their tax rights and obligations
    • That citizens choose which services are funded

    Explanation: The ATO's role includes informing people about their tax rights and duties so that everyone pays the correct amount.

  7. 7. What does working and paying taxes allow the government to do?

    • Decide which citizens may vote in federal elections
    • Provide important services to the Australian community
    • Replace the taxes that are collected by local councils
    • Reduce the number of services it offers to the public

    Explanation: The money raised from taxpayers is what pays for the public services the community relies on.

  8. 8. Which TWO of these are paid for out of the taxes Australians pay?

    • Government-funded healthcare
    • The profits of private companies
    • The campaigns of political parties
    • Roads and railways

    Explanation: Taxes fund public services such as healthcare, education, defence, transport and social security. Private profits and party campaigns are not on that list.

  9. 9. Which of these is an example of taking an active part in Australian society?

    • Paying for private services instead of public ones
    • Joining a neighbourhood or local community organisation
    • Avoiding groups that hold different opinions
    • Leaving all political matters to elected officials

    Explanation: Joining local community, arts or cultural groups, volunteering and taking part in political life are all given as ways of being an active citizen.

  10. 10. Which organisation collects the tax paid on the money you earn in Australia?

    • The Australian Electoral Commission
    • The Australian Taxation Office
    • The Department of Home Affairs
    • The Australian Defence Force

    Explanation: Tax on your earnings is collected by the Australian Taxation Office (ATO). The other bodies listed have nothing to do with collecting tax.

From Australian Citizenship: Our Common Bond, the official booklet