The Economics of Taxation

Subject ECON30016 (2011)

Note: This is an archived Handbook entry from 2011.

Credit Points: 12.50
Level: 3 (Undergraduate)
Dates & Locations:

This subject has the following teaching availabilities in 2011:

Semester 1, Parkville - Taught on campus.
Pre-teaching Period Start not applicable
Teaching Period not applicable
Assessment Period End not applicable
Last date to Self-Enrol not applicable
Census Date not applicable
Last date to Withdraw without fail not applicable

Timetable can be viewed here. For information about these dates, click here.
Time Commitment: Contact Hours: Two 1-hour lectures and a 1-hour tutorial per week
Total Time Commitment: Not available

The following:

Study Period Commencement:
Credit Points:
Summer Term, Semester 1
Corequisites: None
Recommended Background Knowledge: Please refer to Prerequisites and Corequisites.
Non Allowed Subjects: Students may not obtain credit for both ECON30016 The Economics of Taxation and 316-305 Public Finance (1998 Handbook).
Core Participation Requirements:

For the purposes of considering requests for Reasonable Adjustments under the Disability Standards for Education (Cwth 2005), and Students Experiencing Academic Disadvantage Policy, academic requirements for this subject are articulated in the Subject Description, Subject Objectives, Generic Skills and Assessment Requirements for this entry.

The University is dedicated to provide support to those with special requirements. Further details on the disability support scheme can be found at the Disability Liaison Unit website:


Assoc Prof Neville Norman


Subject Overview:

Topics include review of the economic framework for analysing decision making; background to the Australian and other relevant taxation systems; issues and controversies in relation to the tax system and taxpayer decisions; objectives of tax collectors and taxpayers; why taxes exist; options and issues concerning tax bases: income, company profits, expenditures, wealth; the economic impact of taxes on work effort, prices, consumption and saving, investment and financial decisions, corporate investment and corporate financing, welfare, the international location of profits, tax avoidance and evasion; economic analysis of taxpayer decisions concerning legal entities, filing procedures, objections and reviews, negotiation strategies; and policy decisions concerning the tax mix, rate structures and administrative options, legal processes.

  • Explain and evaluate the selection and effects of taxation systems
  • Identify and classify patterns in taxation systems
  • Apply economic theory to relevant social questions
  • Apply and develop existing economic theories
  • Evaluate alternative taxation reform proposals


A 2-hour end-of-semester examination (60%), assignments totalling not more than 2000 words (20%) and case studies (20%).

Prescribed Texts: You will be advised of prescribed texts by your lecturer.
Breadth Options:

This subject potentially can be taken as a breadth subject component for the following courses:

You should visit learn more about breadth subjects and read the breadth requirements for your degree, and should discuss your choice with your student adviser, before deciding on your subjects.

Fees Information: Subject EFTSL, Level, Discipline & Census Date
Generic Skills:
  • High level of development: written communication; problem solving; application of theory to practice; interpretation and analysis; critical thinking; receptiveness to alternative ideas.

  • Moderate level of development: collaborative learning; team work; statistical reasoning; evaluation of data and other information; accessing data and other information from a range of sources.

  • Some level of development: oral communication; synthesis of data and other information; use of computer software.


Students may not obtain credit for both 316-329 The Economics of Taxation and 316-305 Public Finance (1998 Handbook).

Related Majors/Minors/Specialisations: Economics Major

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