The Objectives of the GST in Australia Were To

question 12

Multiple Choice

The objectives of the GST in Australia were to:

• A) reduce the range of goods and services attracting tax.
• B) allow the burden of taxation to be more specific.
• C) reduce the reliance on income taxation in government revenue raising.
• D) allow individuals to avoid paying their taxes.

---

Definitions:

Coupon

The interest rate disbursed annually on a bond, indicated as a percent of its face value.

Bond Price

Bond price is the present value of a bond's future interest payments and its redemption value at maturity, which fluctuates with interest rates and the bond's credit rating.

Tax Exempt Equivalent Yield

A calculation that determines the return needed on a taxable bond to make it equivalent to the yield on a tax-exempt bond, factoring in the investor's tax rate.

Marginal Tax Rate

The amount of tax paid on an additional dollar of income.