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income tax is tax imposed on people based on their income or earnings.

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Income tax is the tax you pay in your average income.

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Income tax is tax charged by the government due to your income.

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Income tax is tax forced on people due to their income or earnings.

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Income tax is a payment made by people to the government, based on their taxable income.

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Income tax is the type of tax that is charged based on your income.

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Income tax is a way for governments to fund community services such as roads, hospitals, and more.

Governments generate revenue from income taxes. They are used to pay for government obligations, fund public services, and provide goods to citizens.

In addition to the federal government, many states and local governments require income tax payment.

The amount of tax you need to pay depends on your income. A person who earns $80 000 annually would need to pay less income tax than a person who earns $250 000 annually.

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What does the government use tax money used for? 

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What does the government use tax money used for? 

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In Australia, tax money is used for health care and education.

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the government uses tax to invest in technology, income, developments, goods and health services, hospital visits, and other things supporting the economy or public.

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Income tax is the tax you pay depending on your average income

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used for infrastructure, education, health care,

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An income tax is charged by the govenrment based on how much you earn

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Income tax is tax you have to pay to the government based upon how much your income is.

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There are different rates for people paying tax because everyone has a different income. A millionaire won't have to pay the same tax as someone who works minimum wage.

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Tax money is used for important government roles within communities.

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income tax is a tax that the government charges you based on your average annual income

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Income tax is a tax on someone's income, it varies depending on people's income

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In Australia, tax money is used to pay for running the country including Australia's defence force, national parks, interstate transportation, and pension payments. It is also used for education, health care, and infrastructure.

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This is the criteria to claim a deduction for work related expense:
1. You must have spent the money yourself and weren't reimbursed.
2. The expenses must directly relate to earning your income.
3. You must have a record to prove it (usually a receipt).

Examples of claimable deductions include:
- those related to mortgage interest
- retirement plan contributions
- student loans

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The government uses tax to pay for healthcare, education, infrastructure, military and all government funded things

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The government uses tax to build infrastructure like hospitals and school. Governments invest in healthcare and technology to better society. People who pay higher tax often benefit with new roads etc.

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People have different rates for their incomes because then you will pay a fair ratio to everyone else.

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the government uses it for the nation such as army, public facilities, roads etc.

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Tax rates can vary a lot between different people, because the higher your wage is, the higher amount your percent would be for tax.

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Tax money is used for education, infrastructure and healthcare. It is also used to pay for Australia's defence forces, transportation and pension.

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Payments made by individuals and corporations to a government entity based on their taxable income

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Payments made by individuals and corporations to a government entity based on their taxable income

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Income tax is tax that has to be paid to the government based on your personal income.

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Someone who makes 50 billion dollars a year will pay a different tax than someone who pays 1 dollar a year. hehehe

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Tax rates change often due to inflation. Additionally, if your salary changes you will need to pay more/less tax depending on the change.

Furthermore, the tax rate may change if the economic situation in a country changes. If a country needs more money, the government will demand more taxes.

The tax rates may also change as a result of national disasters (eg. a war, a flood, etc.) The government may need to repair more infrastructure/public services and as a result, will demand more taxes from citizens to repair infrastructure.

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What does the government use tax money for

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What does the government use tax money for

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The government uses tax money for three main things, healthcare, such as medicare and hospitals, social security and defence and security.

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deduction is when you can claim back money you spent because of work. This could be a work uniform.

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Are taxes always a set amount or is it dependent on how much you earn? Is it always 30% or something?

Here are the rates: https://www.ato.gov.au/rates/individual-income-tax-rates/
You pay based on how much you earn, but not a flat percentage, it's a sliding scale

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The government uses the tax we pay to fund community services such as health care, education and emergency services.

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People with different income have different rates because then there is a fair ratio of money being payed by everyone and people who can not afford to pay so much money will not have to.

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Tax rates can change because of inflation. If your salary changes you will also need to pay more or less tax depending on your new pay.

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TAX MONEY IS USED FOR techNOLOGY, EDUCATION

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how much is the fine if you don't pay tax? why is it a certain percentage and who decided that percentage? why do you need to do all of this for working?

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Deduction is when you get back money spent due your work. For example, if a builder bought 30 bricks for their work, they would get deduction.

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Deduction is money that you claim back because you spent it on work. For example, work supplies.

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Tax rates can change due to inflation or deflation within the government, and if your salary rises you will need to pay more tax.

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Global situations and economical status can vary year to year. For example, Australia has been experiencing heavy flooding and disaster relief has been claimed by many people. This relief is exempt from income tax.

Inflation also has a profound impact on the tax rates of the respective year. The economic status of a region may change, causing the government to either raise or lower the rates to facilitate a change.

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Deductions are when you can claim money for work. For example, student loans are a deduction.

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I need to just know more information about tax in general.

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Deduction is money which you can earn back due to work.

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There are different tax rates for different incomes so that there is a fair ratio being taxed among all brackets. If two people earning $20,000 and $200,000 respectively, it wouldn't be fair if they were paying the exact same amount in taxes.

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Tax rates frequently change due to inflation. When a salary changes, tax will be increased or decreased depending on the new salary.

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what if you didn't pay tax and got a fine but the fine was less than the tax? (hypothetical)
does that mean you save money?
is it possible?

[edit: the government probably doesn't actually do that since then everybody would realise that they can save money :D]

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There are different rates for people paying taxes based on their income. For example, someone earning more money would pay more tax than someone earning less money.

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I need to know more about taxes in general and how they will effect my everyday life.

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are the deadlines for taxes the same for everyone

End of financial year is June 30 and we have until October 31 to file our tax return.
OR apparently if we do our tax through an agent we have until May the following year - just discovered that then!
https://www.bmtqs.com.au/bmt-insider/october-31-self-lodge-tax-return/#:~:text=What%20is%20the%20October%2031,to%20lodge%20your%20tax%20return.

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What you need to know before the October 31 tax deadline

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The October 31 tax deadline is fast approaching for property investors who plan to self-lodge their tax return this year.

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Tax rates change depending on inflation and depression.

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Tax Rates change every year because it helps dampen inflation.

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There are different tax rates for different incomes because someone with a lot higher wage wouldn't pay the same wage as someone with a lower wage because it wouldn't be fair.

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why cant everyone just be paid in cash? the government has money printing machine things, why do they need our money?

Eek! I wouldn't want my life savings in a shoebox under my bed - what if I get robbed?!
Also, if money is in the bank it earns interest so can grow with inflation.

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why doesn't the government just withhold payment and then we don't have to pay taxes? can't they just be smarter with their money?

They do! Workplaces send the ATO a portion of every paycheck - but sometimes we pay too much or too little and have to even it up at end of financial year.

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how much tax would i need to not pay to go to jail :/

Good question - I'm not sure, but if it's an honest mistake you can work with the ATO to set up a payment plan.
https://www.ato.gov.au/general/paying-the-ato/if-you-don-t-pay/

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We know that taxpayers, in particular small business operators and sole traders, sometimes have cash flow issues meaning they can't pay their whole tax bill on time.

In the case that a tax bill isn't paid by the due date, engage with us early so we can help you deal with your debt while it's still manageable. We have a number of tools and services available to support you to address your bill while it's still manageable.

We're committed to listening to your situation and helping you get back on track.
On this page
What happens if you don't pay

If you don't pay the amounts you owe us on time, we will:

charge on your unpaid amounts

contact you soon after the due date by one of the following methods

use any .

We may take stronger action if you are unwilling to work with us to address your debt or repeatedly default on agreed payment plans.

We don't currently refer selected debts to external collection agencies for collection on our behalf, but we may do so for any cases in the future.

Make sure you lodge your activity statements and tax returns on time even if you can't pay by the due date. You'll avoid a penalty for failing to lodge on time and we'll know you're aware of those obligations.

General interest charge

If you don't pay on time, we will automatically add a general interest charge (GIC) to what you owe. Your debt will grow each day your debt remains unpaid.

Interest calculates on a daily compounding basis on the amount outstanding and is added to your account periodically.

We revise GIC interest rates quarterly.

You can generally claim a tax deduction for interest charged in the year it's incurred.

Remission of interest

You can ask us to remit, such as reduce or cancel, some or all of your interest by:

Tell us why you think it is fair and reasonable for us to reduce or cancel your interest charges. Include the circumstances that led to your delay in payment and any steps you've taken to pay what you owe.

If your request is approved, you must include the amount of the remitted interest in your tax return as assessable income in the year it was remitted.

Using refunds or credits to pay debt

If you have a debt with us and you're due to receive a refund or credit such as from an earlier tax return or activity statement, we're required by law to use the refund or credit to reduce your debt. This is what we call offsetting.

Offsetting is where we use a credit or refund from one account to pay off an outstanding or on-hold debt on another account.

We're also required to pay your refund to other Australian Government agencies if you owe them money. For example, if you have an overdue child support payment, part or all of your refund payment may be paid to Services Australia.

Once all your debts are clear, we'll refund any remaining credit to you.

We'll notify you in writing if we use your refund to pay a debt. This type of offset can also be found on your statement of account and in your Online services account with the description Offset.

If you are in serious financial hardship, we may be able to pay the refund to you instead.

External debt collection agencies

Previously we referred some debts to external debt collection agencies for collection on our behalf up to April 2020. Debt cases are currently no longer actioned by external debt collection agencies. However, we may do so for any in the future. Contact us directly on 1300 466 859.

Milton Graham

Debt cases are no longer actioned by Milton Graham as of April 2020.

Collection House

Debt cases are no longer actioned by Collection House as of April 2020.

Probe Operations Pty Ltd

Debt cases are no longer actioned by Probe Operations Pty Ltd as of 31 December 2019.

Recoveriescorp

Debt cases are no longer actioned by Recoveriescorp as of 31 December 2019.

Disputed debt

Previously we wouldn't refer debts to collection agencies when formally disputed. If you had formally disputed your debt after we referred it to an agency, the debt would be returned to us for action.

If you think it's a scam

If you previously received a call from a debt collection agency on our behalf, there are ways to check if it was legitimate, such as check if they asked you to pay by:

BPAY using the ATO biller code 75556

a method listed under our How to pay options.

You can also phone us directly on 1800 008 540 to verify they are legitimate.

Disclosure of business tax debt

If you have overdue tax debts and meet certain criteria, you may have your tax debt reported to registered credit reporting bureaus (CRBs). If you meet the eligibility criteria you will receive a Notice of intent to disclose, that will advise you of the relevant action to take.

If you're already engaged with us to manage your tax debts, the debts will not be reported to CRBs.

Stronger action

We're committed to supporting taxpayers who want to do the right thing and preventing those who don't pay from gaining an unfair financial advantage. We use stronger action when people:

are unwilling to work with us

repeatedly default on agreed payment plans

don't have the capacity to pay and don't take steps to resolve their situation

have been subject to an audit where we detect deliberate avoidance and payment avoidance continues

appear to be engaging in phoenix activities (using liquidation to avoid financial obligations without risking assets and with the intention of resuming business operations through a new entity).

Stronger action includes:

In some cases, we may take legal action to recover outstanding tax and super debts. The action we take depends on whether an individual (or sole trader), partnership, trust, superannuation fund or company owes the debt and may include:

Garnishee notice

We can issue a garnishee notice to a person or business that holds money for you or may hold money for you in the future. This requires them to pay your money directly to us to reduce your debt. We'll send a copy of the notice to you.

For individuals, we may issue a garnishee notice to:

your employer or contractor

banks, financial institutions and building societies where you have accounts

people who owe money to you from the sale of real estate such as purchasers, real estate agents and solicitors.

For businesses, we may issue a garnishee notice to:

your financial institution

trade debtors

suppliers of merchant card facilities.

Director penalty notice

Directors can incur penalties equal to their company's

unpaid PAYG withholding

net GST (inclusive of luxury car tax and wine equalisation tax)

superannuation guarantee charge.

We may issue a director penalty notice enabling us to start legal proceedings to recover the penalty.

Direction to pay super guarantee charge (SGC)

We can issue employers with a direction to pay outstanding SGC (or estimates of SGC) within a specified period. When an employer receives a direction to pay, they must ensure that they pay the full amount specified in the direction. A failure to comply with the direction is a criminal offence and can result in penalties or imprisonment.

Claim or summons

If you don't work with us to address your debt, we may file a claim or summons with the relevant court of your state or territory. Once the court recognises the debt owed, we may execute on the judgment debt in a number of ways, including by filing and serving a bankruptcy notice.

If the court imposes judgment debt interest, this amount is not tax deductible.

Bankruptcy notice

If you receive a bankruptcy notice, you need to pay your debt or make a payment plan with us within 21 days. If you're unable to do this, we may file a creditor's petition to make you bankrupt. Bankruptcy is a legal declaration that a person is unable to pay their debts. When a person becomes bankrupt, the bankruptcy trustee takes possession of nearly all of their assets and sells them to pay the person's debts.

We won't seek to bankrupt you if it is clear you're able to pay your debt in a reasonable time. If you're facing bankruptcy action, but believe you can pay your debts, you should provide us with clear evidence of your ability to pay.

You can go into bankruptcy voluntarily by filing a debtor's petition with the Australian Financial Security AuthorityExternal Link .

Creditor's petition

A creditor's petition is essentially an application to the Federal Court or Federal Magistrates Court for a sequestration order to declare you bankrupt. Anyone you owe money to, including us, can file a creditor's petition if you have committed an 'act of bankruptcy' (such as failing to comply with a bankruptcy notice), within the preceding six months.

If the sequestration order is made, you will become bankrupt and a trustee appointed to manage your estate. This usually involves the sale of the bulk of your assets to pay your creditors, including us.

The court will not issue the order if you can demonstrate you're able to immediately pay all of your debts.

Statutory demand

We can issue a statutory demand for payment to a company that has not paid its debts. A statutory demand requires the company to pay the entire debt or enter into a payment plan with us within 21 days.

If a company doesn't comply with the statutory demand, we may use the non-payment as evidence that the company is insolvent and apply to the Federal Court to wind up the company.

Wind-up action

When a court orders a company to wind up, an appointed official liquidator sells the company's assets and distributes the resulting funds to the company's creditors.

We'll take action to wind up a company if it has failed to pay its debts and we have not been able to negotiate a suitable payment plan. These circumstances may indicate that the company is insolvent and there could be a risk to us (and possibly to other creditors) that the debt will not be paid.

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We know that taxpayers, in particular small business operators and sole traders, sometimes have cash flow issues meaning they can't pay their whole tax bill on time. In the case that a tax bill isn't paid by the due date, engage with us early so we can help you deal with your debt while it's still manageable.

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is it easy to keep track of tax - how long has to be spent each year making sure it's up to date and not fraudulent

Most stuff is automatic eg. salary, interest, share dividends. The annoyance is keeping receipts to keep track of claimable deductions. I take photos of mine and put them all in a onenote folder so it's all easy to locate :)

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There are different tax rates for people making larger amounts of money to make sure that it is fair the amount of money they are left with

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do you get taxed for shares or investments?

Yes, you must pay tax on any income, including bank interest, rental income, and dividends from shares.
https://www.ato.gov.au/Individuals/Investments-and-assets/Investing-in-shares/

Investments are slightly different - when you sell the asset you pay capital gains tax on the profit you made.
https://www.ato.gov.au/Individuals/Capital-gains-tax/

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Find out about the tax implications when obtaining, owning and disposing of shares, including receiving dividends.

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Deductions are when you are able to claim money back from taxes due to circumstances such as having to buy something for work. The reason this is valid is because you are not buying anything personal, but buying something for your job. If your salary is $50,000 and you spent $2,000 on a uniform (even though uniforms aren't that expensive), then your salary is technically $48,000, therefore less tax.

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Changes in Tax Rates for Different Citizens.

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Changes in Tax Rates for Different Citizens.

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Different citizens pay different amounts of taxes. The amount of tax paid depends on the income a person earns. A person earning $80 000 annually pays less tax than a person earning $250 000 annually.

This is because the rates change since you may not be able to afford to be able to pay tax if you earn less than someone who earns a lot.

Additionally, this system makes it much fairer for everyone and ensures there is less of a chance of poverty due to tax paying for individuals with a lower salary.

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do you have to pay a tax when you win the lottery?

Good question!
Not in Aus :) but you have to pay tax on bank interest earnt in subsequent years.
In the US, lottery winnings are taxed.

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why does the government need MY money. i worked for it not them. they can just print more money. unfair system.
why does money even exist :(

Imagine what a nightmare it would be getting everyone to pool their money together every time a road needs repairing. And is it really fair if people aren't given the same opportunities in life (eg education) just because they weren't born into a wealthy family?

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Tax rates mostly change due to inflation in the economy. Your tax rate can also change because your salary has increased and you are now in a different tax bracket.

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What is a deduction to taxable income? What can be claimed as a deduction?

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What is a deduction to taxable income? What can be claimed as a deduction?

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A deduction to taxable income is a claim that you can use to pay less tax. Some things that you can claim to get a deduction include those related to mortgage interest and student loans.

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who invented taxs

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How much is the fine if I don't pay taxes?

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Different people pay different rates depending on their income, the higher the income the more you will be taxed. This is so that everyone has enough money to live and the money can go to those who need it most. This is also so richer people do not overcapitalise and everyone can have access to basic benefits.

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Governments use money taxed from citizens for public services & projects.

For example:
- defense (15%)
- healthcare (13%)
- income security (13%)
- interest payments (6%)
- benefits for veterans (5%)
- education (3%)
- social security (24%)
- medicare (15%)
- foreign aid (~1%)
- other (~5%)

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can homeless people get pension when they get old?

I believe so... https://www.servicesaustralia.gov.au/how-much-age-pension-you-can-get?context=22526

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There are different rates of Age Pension payments for single and partnered people. If you have a partner we need income and asset information for both of you.

Read about how your relationship changes can affect your payment rate.

If you or your partner get income from or have assets outside Australia, it may affect your rate.

There are also different rates for some people who were getting a pension in 2009.

The Department of Social Services regularly reviews these rates to reflect changes in the Consumer Price Index. The amounts on this page are the maximum rates each fortnight. In some circumstances, you can choose to get your payment each week. Depending on your circumstances, you may also get an advance payment.

Normal rates

Transitional rates

Some people who were getting part pensions on 19 September 2009 are on transitional rates. This is until they catch up with the current normal rates.

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There are different rates of Age Pension payments for single and partnered people. If you have a partner we need income and asset information for both of you. Read about how your relationship changes can affect your payment rate. If you or your partner get income from or have assets outside Australia, it may affect your rate.

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can you teach us ways to save tax money (eg. tax deductions) and how we can get the most money out of taxes

The only way to 'save' tax money is by making work-related purchases, but you end up worse off overall. Better to focus on investing your earnings (we'll look at earning interest next!)

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can you claim a deduction if your an influencer and need trendy stuff to earn income

Ooh good question! Maybe a grey area - I'd say yes if they bought it directly to do a review or something (but they probably get given these things for free right?!), but no if they're just wanting to be trendy

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does albo pay tax