To explore what students think about tax have them fill out our online survey.
Or you can print out and complete the survey here:
Learning experience 1 – What is tax for?
Key conceptual understanding
That decisions about tax spending impact on the needs of individuals and communities in New Zealand
Getting started:
What is tax?
The following activities enable students to develop their conceptual understanding about what tax is.
IR Survey
Inland Revenue is interested in understanding what students think about some aspects of tax and being a citizen of New Zealand. Before you get started please ask each student to complete this Tax Education and Citizenship survey. You could use questions from this survey to establish areas of need or promote discussion, and again at the end of the unit to ascertain learning.
What's tax for?
Show the students the What's tax for? animation. Tell them they are going to be finding out about tax and ask them to consider what they know, and what they have yet to find out.
This could be done as a quick class brainstorm, or in pairs or small groups.
Note: The tax rebate for children was replaced on 1 April 2012 with an income exemption up to $2340 if this income is not taxed at source. The exemption does not apply to salary or wages, interest or dividends, because this is taxed at source.
Cartoon
Show the students the What's tax for? cartoon. Have the students consider questions such as: Who could pay for this? Who should pay for this? Why? Where does this money come from?
KWL
Using the previous activity as a stimulus, brainstorm with the class what they know (K) and what they would like to know (W) about what tax is for in their community. Write their contributions and questions on a large chart or whiteboard to refer back to. At the end of these learning experiences, have the students consider what they have learnt (L).
Strange taxes
Ask the students to find out about one of the following strange taxes, or any others they may discover. Get them to create a humorous poster explaining what the tax was for, the country that had the tax, and why it was introduced.
- Amusement tax (Canada)
- Window tax (Britain)
- Brick tax (Britain)
- Wallpaper tax (Britain)
- Tax on the use of public space (Czech Republic)
- Pork slaughterhouse tax (Hungary)
- Beard tax (Russia in 1705)
- Hat tax (UK in 1784)
- Bathing tax (Japan)
- Sparkler & novelty tax (US - West Virginia)
- Blueberry tax (US - Maine)
- Cooking oil tax (Egypt during the Pharaohs)
Finding out information:
Who are the formal and informal groups that make decisions about tax?
Inland Revenue (IR) collects tax on behalf of the Government. This includes Income Tax, GST and PAYE amongst other taxes. Some forms of tax are not collected by IR. These include excise duties (tax on alcohol, cigarettes, and petrol) and customs and gaming duties. Locally, rates paid to councils provide local services.
Inland Revenue and central government are examples of formal groups involved in taxation. The Government decides how tax is spent. A number of other formal and informal groups are involved in debates about tax and they seek to influence decisions about tax revenue and spending. These include other political parties, working groups and committees, lobby groups, and financial sector organisations. Everyone can to have their say about taxation through voting in elections.
Using the news
Select a range of newspaper articles about a current issue involving a debate about spending in your community. Ask the students to identify who the formal and informal groups involved in this debate are. Discuss which aspects of the issue relate to local/regional rates and which relate to national tax spending.
Considering decisions and responses:
How does tax spending impact on our community?
The elected government is responsible for the formation of Cabinet. Cabinet Ministers in turn are appointed to portfolios. They decide how to spend the tax dollars that are assigned to their particular portfolios.
Your taxes help pay for the things that make New Zealanders who they are ― by funding agencies like Creative NZ and NZ on Air, which help finance New Zealand music videos, bands, and theatre.
- Education
- Core government services
- Law and order including the police, the courts and justice systems, the defence force
- Transport and communications, public roads
- Economic and industrial services
- Primary services
- NZ Superannuation
- Working for Families Tax Credits
- Other social welfare, including sickness and unemployment benefits
- Healthcare including medical and hospital services
Use information on the What's Tax website to help.
Mapping exercise
Provide your students with a map of an area of their local community. To familiarise them with this area further, take the students on a walk. Ask them to identify features in the local community that would be paid for by the Government and/or the local council.
Have the students identify these features on their map, using a key. Back in class, share and discuss the maps. Ask the question: “Is there any part of our local community that is not paid for through taxes? Who pays instead?”
Ask the students to consider what their local community could be like without the benefit of tax.
Considering decisions and responses:
How does tax spending impact on our school?
Understanding our school’s budget
Ask the students to consider all of the things in the school that have to be paid for. List these on the whiteboard.
Form the students into pairs and ask them to sort this list into a chart with five columns - parents, PTA, government, local council, other. Have the students compare their charts with another pair, and adjust their chart in light of the discussion.
Invite the principal or BOT treasurer to provide the students with feedback about their charts and answer questions about where the money for the school comes from and who pays for what.