Source: Australian Tax Forum Journal Article
Published Date: 1 Jul 2016
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?
More by Brett Freudenberg
Reasons behind SME advisor business structure recommendations - Journal 22 Apr 2024
Ordinary family dealings: how do we understand them? - Journal 15 Dec 2023
The business tax literacy of Australian small businesses - Journal 01 Apr 2022
Small business restructure roll-over: in need of its own restructure? - Journal 01 Apr 2022
Australia's 50% CGT discount: Policy oversight? - Journal 01 Mar 2020
Tax compliance in the new millennium: Understanding the variables - Journal 01 Mar 2020
What's in it for me? The potential for managerial benefits to improve tax compliance - Journal 01 Jul 2018
The Australian taxation system: The 2017 great debate - Journal 01 Mar 2018
The impact of tax on the prospects of achieving target retirement wealth in Australian default superannuation plans - Journal 01 Apr 2017
Sorry, this is subscriber only content.
To gain access to this material and much more - Subscribe Now.
(Note: Members can access Taxation in Australia journal articles without a Tax Knowledge Exchange subscription - please log in to access).
Already a Subscriber? Login now
Already a Subscriber? Login now
Details
The material is copyright. Apart any fair dealing for the purpose of private study, research criticism or review, as permitted under the copyright Act, no part may be reproduced by any process without written permission from The Tax Institute.
Unless expressly stated, opinions are not that of The Tax Institute, which accepts no responsibility for the accuracy of any of the information contained within it.
The Tax Institute
(ABN 45 008 392 372 (PRV14016))
("TTI")
The Tax Institute is a Recognised Tax Agent Association (RTAA) under the Tax Agent Services Regulations 2009.
All materials provided on this site are protected by copyright and are owned by or licensed to TTI.
Except as expressly permitted by TTI or the copyright owner, any person or company who uses this site must not use, reproduce, redistribute, retransmit, publish or otherwise transfer, or commercially exploit, the materials or any information, software or other content, in whole or in part, which is available through this site.
Tags