Are Australians Under or Over Confident when it Comes to Tax Literacy, and Why Does it Matter?

eJournal of Tax Research, Vol. 14(3), p. 650-682, 2016

Griffith University Law School Research Paper No. 17-05

36 Pages Posted: 9 Feb 2017 Last revised: 3 Mar 2017

See all articles by Toni Chardon

Toni Chardon

University of Southern Queensland

Brett Freudenberg

Griffith University - Griffith Business School; Griffith University - Griffith Law School

Mark Brimble

Griffith University - School of Accounting, Banking and Finance - Nathan and Logan Campuses; Centre for Financial Independence and Education

Date Written: December 29, 2016

Abstract

The concept of financial literacy and capability is seen as important in modern economies. An important part of financial capability is a person’s confidence in dealing with financial decisions. It has been argued that financial literacy should be extended to include knowledge and understanding of the tax system, given it can influence investment strategies and wealth outcomes. We examine how Australians’ confidence relates to their tax literacy. The findings suggest that lower confidence is more likely to relate to certain demographics. However, unlike other financial literacy measures, it appears that peoples’ tax confidence is more aligned to their actual understanding.

Keywords: Financial Literacy, Tax Literacy, Financial Capability, Confidence

JEL Classification: K34, H21, I22

Suggested Citation

Chardon, Toni and Freudenberg, Brett and Brimble, Mark, Are Australians Under or Over Confident when it Comes to Tax Literacy, and Why Does it Matter? (December 29, 2016). eJournal of Tax Research, Vol. 14(3), p. 650-682, 2016; Griffith University Law School Research Paper No. 17-05. Available at SSRN: https://ssrn.com/abstract=2907824

Toni Chardon

University of Southern Queensland ( email )

P.O.Box 238 Darling Heights
Toowoomba, Queensland 4350
Australia

Brett Freudenberg (Contact Author)

Griffith University - Griffith Business School ( email )

Brisbane, Queensland 4111
Australia

Griffith University - Griffith Law School ( email )

Nathan Campus, GU
Nathan 4111
Australia

Mark Brimble

Griffith University - School of Accounting, Banking and Finance - Nathan and Logan Campuses ( email )

University Drive
Logan, Queensland 4131
Australia
(07) 373 55311 (Phone)

Centre for Financial Independence and Education ( email )

Brisbane, Queensland 4111
Australia

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