Tax literacy in Australia: not knowing your deduction from your offset

Chardon, Toni and Freudenberg, Brett and Brimble, Mark (2016) Tax literacy in Australia: not knowing your deduction from your offset. Australian Tax Forum, 31 (2). pp. 321-362. ISSN 0812-695X


In times of global economic uncertainty and in a climate of increased consumer responsibility for financial decisions, maintaining a financial environment where consumers are protected from risk and continue to have opportunities to create wealth should be critical for governments, business and administrators. The Australian Government has recognised that, for those with the lowest levels of financial literacy, specific financial literacy programs can equip them with the appropriate financial skills and knowledge to ensure they can make well informed decisions and be less vulnerable to scams and market risks.

One of the main aims of increasing the overall financial literacy of populations is creating an environment where consumers have the knowledge, skills and confidence to protect them from financial risk. It is argued that taxation consequences often play an important role in investment decisions and are often the primary reason why people seek assistance and advice from professionals. It is also argued that making poor taxation decisions through a lack of basic understanding can pose significant risks to a person’s overall financial position and financial decision?making. Indeed, Chardon has argued that the notion of financial capability should include notions of tax and superannuation. However, to what extent do Australians understand basic tax concepts, that is - what is their 'tax literacy'?

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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: Files associated with this item cannot be displayed due to copyright restrictions.
Faculty / Department / School: Current - Faculty of Business, Education, Law and Arts - School of Law and Justice
Date Deposited: 26 Jul 2016 03:59
Last Modified: 26 Jul 2016 04:31
Uncontrolled Keywords: financial literacy; tax literacy; taxation law; financial capability
Fields of Research : 15 Commerce, Management, Tourism and Services > 1502 Banking, Finance and Investment > 150201 Finance
18 Law and Legal Studies > 1801 Law > 180125 Taxation Law
Socio-Economic Objective: B Economic Development > 90 Commercial Services and Tourism > 9001 Financial Services > 900199 Financial Services not elsewhere classified
C Society > 94 Law, Politics and Community Services > 9404 Justice and the Law > 940499 Justice and the Law not elsewhere classified

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