School of WooHoo - Chapter 2 : Understanding Income and Tax - Activity 1

Welcome to Chapter 2 - Understanding Income and Tax - Activity 1

After completing this chapter, you will show a good understanding of basic tax knowledge and demonstrate skills to be able to explain basic tax queries to a customer.

If you get an answer incorrect, it will tell you the correct answer and on occasion, a further explanation. Please do not attempt the question again, just move on to the next question.

Use your resources such as Woogle wisely and ensure you fully read the question before answering.

Good luck!

Chapter 2: : Understanding Income and Tax

1. For each of the following types of money received, decide whether it is earned, unearned, or an ‘other’ source of income.

Money Received Source of Income
Winning $670 on Lotto   
Wages from working at your job  
Interest on your savings  
Money received for commission sale you made  
NZ Superannuation  
$100 from your sister on your birthday  
$80 from your part time job  
A payment received from shares with KFC  
Board received from a relative staying with you  

 

2. Drag and drop the missing words to complete the following statements regarding source of personal income

  • GIFTS
  • INCOME
  • UNEARNED
  • EARNED
  • INTEREST
  • SALARY

3. How good is your understanding of the sources of personal income? Match the following sources of personal income to the circumstances that best describe when that type of income would apply.

  • Salary
    A set amount of money paid at regular timeframes in exchange for work completed
  • Wages
    Money paid in exchange for work completed where the amount may change if the hours of work change
  • Interest
    Paid on investments or savings
  • Government superannuation
    Regular money received by people over age 65 from the government
  • Unemployment benefit
    A benefit received by people who are not in paid employment
  • Board
    Money received from a person living in yourhome to help with their living costs, such as food and a room
  • Commission
    Money received for each product or service that a person sells, often based on the number and/or the value of what they sell; this may be on top of a base salary
  • ACC
    Money received by people who are unable to work because of an accident