Background
In 2018 we commissioned independent research company Kantar Public to undertake a community research study to determine the following:
- What are the current levels of awareness, behaviour and perceptions regarding the teaching of tax and super to children?
- What strategies will be most relevant and effective in supporting parents and the wider community in teaching children about tax and super?
Existing research shows that young Australians’ knowledge of tax and super is low, particularly in relation to the purpose of tax, the ability to complete a tax return and how to seek help about tax and super. For this reason, we engaged Kantar Public to conduct research to inform the development of strategies, interventions, communication campaigns and tools to support the teaching of tax and super to children.
Our aim is to develop a youth education strategy that ensures an accurate understanding of and willingness to participate in Australia’s tax and superannuation systems. This research provides us with a detailed insight into community sentiment and perceptions about the teaching of tax and super to children as well as the associated role that parents and the wider community play.
About the research
To ensure a thorough investigation of the research objectives, Kantar Public delivered a multi-modal research approach, incorporating both qualitative and quantitative elements. The qualitative research involved:
- 4 focus groups with parents of secondary school students in Sydney, Melbourne and Toowoomba
- 6 in-depth interviews with members of parents and citizens associations across Australia (Vic, Tas, Qld, ACT, SA and WA).
The quantitative phase comprised a 15-minute online survey of 1,506 Australians, including 1,005 parents (with at least one child at school) and 501 wider community members (with no children at school). All fieldwork was conducted in May and June 2018.
Key insights
The research found the following 4 key insights.
Insight 1
There are relatively low levels of knowledge and confidence among parents about finances, and in particular tax and super:
- Only half of parents (49%) admit to knowing ‘a great deal’ about their personal finances.
- One in 5 Australian parents report knowing little to nothing about the Australian taxation system and super (19% tax and 20% super).
- One in 5 Australian parents don't feel confident explaining tax and super to their child (18% super and 19% tax).
- Over half of parents (54%) report to have not had any discussion around tax and super with their child. However, parents with at least one child in secondary school are significantly more likely to have discussed both tax and super than primary school parents (40% and 13% respectively).
- There are low levels of awareness of tax and super being taught in schools – only 7% of parents are aware of superannuation education, while 13% are aware of tax education.
Insight 2
There is very strong importance placed on educating students about tax and super:
- 9 in 10 parents and wider community members think education on tax and super is important (tax: 88% parent and 86% wider community; super: 90% parents and 87% wider community).
- Education on these topics is understood to extend beyond financial benefit to the individual, by ensuring a more financially literate population who will in turn be less reliant on government welfare. Education about the system as a whole is considered to provide students with a holistic understanding of their duty as a citizen and position in society.
- Education about tax and super is considered to be an essential life skill. It was recognised that the consequences of no education on these topics would lead to poor financial decisions and, in some cases, limited financial security.
- It is widely agreed that education about tax and super should be the responsibility of both parents and schools
- 7 in 10 parents (73%) and members of the wider community (59%) believe parents at home should be responsible for teaching children about tax and super
- 7 in 10 parents (68%) and members of the wider community (71%) believe teachers and schools should be responsible for teaching children about tax and super.
- While there is agreement about the shared responsibility for education, 90% of parents and 94% of wider community members agree that relying on parents to teach their students about tax and super is inequitable for children as not all parents are equally knowledgeable.
Insight 3
There is almost universal support for the inclusion of education about tax and super in the school curriculum:
- The majority of parents and wider community members (95%) think learning about tax and super should be included in the curriculum. Further to this, parents and wider community members (both 87%) think education about tax and super should be compulsory.
- Of those who think education about tax and super should be compulsory, 80% of parents and 88% of wider community members maintain education should be compulsory even if it meant replacing an existing item in the curriculum.
- The most common year for introducing education about tax and super was considered to be Year 10 – it was seen to have the highest relevance to children at this age as they often commence working.
- However, on prompting, the majority of parents and wider community members support the inclusion of education in primary school (80% parents and 78% wider community). In particular, Year 6 was seen to be an appropriate time to overtly introduce the topics of tax and super, with the potential for it to link with a government unit and trip to Canberra.
- 4 in 5 parents (78%) report how and why Australians pay tax is the most important lesson for students to learn about tax and super, followed by why super is important (75%). Interestingly, parents from a higher socio-economic background placed greater importance on learning about the concepts about tax and super, while lower socio-economic status (SES) parents stressed the importance of learning practical information (such as how to get a TFN).
- The most popular format for delivery of tax and super education is through a separate ‘life skills’ subject (61% parents and 60% wider community). Indeed, projects such as a ‘mini-business’ and teacher directed learning are reported as the most popular options for engaging students.
Insight 4
To ensure that support for the inclusion of tax and super education in schools is optimised, it is essential to start a conversation with parents and the wider community.
The qualitative research demonstrated that the perceptions of parents towards tax and super changed over the course of the focus group. As the discussion progressed, parents became increasingly aware of the importance of educating their children about tax, super and finances more broadly.
This increased urgency was also evidenced in the quantitative research, suggesting that encouraging a public conversation about incorporating education on tax and super in schools will be beneficial to gaining momentum for this cause.
Findings
Other key findings from the research participants include the following:
- Only half of the parents (49%) know ‘a great deal’ about their personal finances.
- One in 5 parents know little to anything about the Australian taxation system and super (19% tax and 20% super).
- One in 5 parents don't feel confident explaining tax and super to their child (18% super and 19% tax).
- Over half of the parents (54%) have not had any discussion around tax and super with their child. However, parents with at least one child in secondary school are significantly more likely to have discussed both tax and super than primary school parents.
- There are low levels of awareness of tax and super being taught in schools – only 7% of parents are aware of superannuation education, while 13% of parents are aware of tax education.
- 9 in 10 parents and wider community members think education on tax and super is important (tax – 88% parents and 86% wider community, super – 90% parents and 87% wider community).
- It is widely agreed that education about tax and super should be the responsibility of both parents and schools.
- 7 in 10 parents (73%) and members of the wider community (59%) believe parents at home should be responsible for teaching children about tax and super.
- 7 in 10 parents (68%) and members of the wider community (71%) believe teachers and schools should be responsible for teaching children about tax and super.
- The majority of parents and wider community members (95%) think learning about tax and super should be included in the curriculum. Parents and wider community members (both 87%) think education about tax and super should be compulsory.
How the research will be used
The research findings and insights are overwhelmingly positive. They will help us build a case for curriculum changes to have tax and super taught in schools.
This research also supports the potential for all Australian children to become knowledgeable and confident about tax and super. Improving financial literacy will help prevent future strain on our economy.