Tax, Spending, and Choices

Overview

Students investigate why governments collect tax and how taxation supports public services. They then use evidence to compare competing views about public spending, developing reasoned conclusions rather than simply stating personal preferences.

Learning intentions

• WALT explain why governments collect tax.
• WALT distinguish between income tax, GST, and other forms of tax.
• WALT use evidence to compare different views about public spending.
• WALT explain how values, perspectives, and ideologies influence policy positions.

Success criteria

• I can explain at least two reasons why governments collect tax.
• I can accurately describe how PAYE and GST affect people.
• I can identify the values or priorities behind two different spending views.
• I can use evidence to reach a justified conclusion about a public spending choice.

Curriculum links

• Economic Activity — Employment and taxation: tax is collected from income, such as PAYE, and expenditure, such as GST.
• Economic Activity — Personal budgeting: using financial information to evaluate financial decision-making.
• Civics and Society: using sources to compare policy positions, values, perspectives, and ideologies.
• Builds the refreshed curriculum capabilities of critical thinking, using evidence, participating in discussions, and communicating a reasoned perspective.

Lesson structure (70 minutes)

1. 0–7 min · Hook and retrieval. Open with the provocative tax-and-services hook and display the question, “If tax disappeared tomorrow, what would change?” Students silently list three services they use or rely on, then share with a partner and identify which might require public funding. Take several responses without confirming answers yet.

2. 7–18 min · Direct teaching: why tax exists. Use the tax types and public revenue slides to explain that governments collect revenue to fund public services and infrastructure, redistribute resources, meet shared needs, and respond to emergencies. Clarify PAYE as tax deducted from employment income and GST as tax included in most purchases; note that the amount of revenue changes with the level and type of economic activity. Students complete the first section of the tax and spending investigation worksheet, recording a definition and example for each tax type.

3. 18–28 min · Apply to financial information. Model a simple payslip: gross pay of $800, PAYE of $120, and net pay of $680. Explain that this is a simplified classroom example, not personal financial advice. Then show a $115 purchase including GST and ask students to identify what the tax allows the government to collect. In pairs, students answer the worksheet questions and annotate which information supports each answer. Check understanding with “Which amount can the worker actually spend?” and “Who pays GST at the point of purchase?”

4. 28–43 min · Source investigation in groups. Place students in groups of five, with roles of facilitator, reader, evidence finder, scribe, and reporter. Provide each group with two short, contrasting policy statements in the tax and spending investigation worksheet: one prioritising increased public spending on health, housing, and education, and another prioritising lower taxes and reduced government spending. Students highlight each statement’s proposed action, supporting reason, affected groups, and possible value or ideology, such as equity, individual choice, economic growth, or collective responsibility. Circulate and ask, “Who benefits?”, “Who may carry the cost?”, and “What assumption is being made?”

5. 43–58 min · Structured comparison and discussion. Return to the policy comparison and discussion prompts. Groups complete a comparison table, then prepare a one-minute response to: “Which position would better support New Zealanders at this time, and what is one possible drawback?” Groups present their conclusions. The audience records one strength and one question for each position. Emphasise respectful disagreement, accurate use of evidence, and the difference between describing a view and agreeing with it.

6. 58–70 min · Individual judgement and exit check. Students independently complete the final worksheet paragraph: “Governments should collect tax because… Public spending should prioritise… My view is justified by…” Require one reference to PAYE or GST, one public service, and one piece of evidence from the policy statements. Finish by asking students to hold up fingers from 1–4 to show confidence against the success criteria, then collect the worksheet for assessment.

Resources

• the tax, public services, and policy comparison slide deck
• the tax and spending investigation worksheet
• Simplified sample payslip and purchase receipt
• Two contrasting public spending policy statements
• Highlighters or coloured pencils
• Board or projector
• Timer
• Group role cards or displayed role instructions

Assessment

• During direct teaching, question students about the difference between gross pay, PAYE, net pay, and GST; address misconceptions immediately.
• Check group comparison tables for accurate evidence, identification of affected groups, and recognition of values or priorities.
• Assess the individual paragraph for explanation, accurate economic vocabulary, use of evidence, and a justified conclusion. Note which success criteria require reteaching.

Differentiation

• Support learners with a word bank: tax, revenue, PAYE, GST, public service, equity, choice, evidence, benefit, and cost. Provide sentence starters such as “This policy prioritises…” and “The evidence suggests…”.
• Read policy statements aloud and provide a version with key information highlighted for students needing literacy support. Allow verbal rehearsal before writing.
• EAL learners may discuss ideas with a supportive partner and use labelled examples of income, spending, and public services.
• Advanced learners should consider whether the two positions could be combined, identify a group disadvantaged by each policy, and explain how a change in tax rates might affect government revenue and economic activity.