Are Australians under or over confident when it comes to tax literacy, and why does it matter?

Article

Chardon, Toni, Freudenberg, Brett and Brimble, Mark. 2016. "Are Australians under or over confident when it comes to tax literacy, and why does it matter?" eJournal of Tax Research. 14 (3), pp. 650-682.
Article Title

Are Australians under or over confident when it comes to tax literacy, and why does it matter?

ERA Journal ID17101
Article CategoryArticle
AuthorsChardon, Toni (Author), Freudenberg, Brett (Author) and Brimble, Mark (Author)
Journal TitleeJournal of Tax Research
Journal Citation14 (3), pp. 650-682
Number of Pages33
Year2016
Place of PublicationAustralia
ISSN1448-2398
Web Address (URL)https://www.business.unsw.edu.au/research/research-journals/atax-journal
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.

Keywordsfinancial literacy, tax literacy, financial capability, confidence
ANZSRC Field of Research 2020480106. Taxation law
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Byline AffiliationsSchool of Law and Justice
Griffith University
Institution of OriginUniversity of Southern Queensland
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