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v1 Financial Maths, STD2 F1 2021 HSC 22

The table shows the income tax rates for the 2020–2021 financial year.

Taxable income Tax payable on this income
0 - $18 200 Nil
$18 201 - $45 000 19 cents for each $1 over $18 200
$45 001 - $120 000 $5092 plus 32.5 cents for each $1 over $45 000
$120 001 - $180 000 $29 467 plus 37 cents for each $1 over $120 000
$180 001 and over $51 667 plus 45 cents for each $1 over $180 000

Stephanie earns a gross annual salary of $96 000. She claims allowable tax deductions of $1 250 for work-related travel and $350 for professional development. Stephanie must also pay a Medicare Levy of 2% of her taxable income.

Calculate the total tax payable by Stephanie including the Medicare Levy. (3 marks)

--- 6 WORK AREA LINES (style=lined) ---

Show Answers Only

`$20\ 035`

Show Worked Solution
`text(Taxable income)` `=96\ 000-1250-350`  
  `=94\ 400`  
`text(Income tax)` `=5092 + 0.325(94\ 400-45\ 000)`  
  `=5092 + 0.325 × 49\ 400`  
  `=21\ 147`  
`text(Medicare Levy)` `=0.02 × 94\ 400`  
  `= 1888`  

 

`:.\ text(Total tax payable)` `=21\ 147 + 1888`  
  `= $23\ 035`  

Filed Under: Tax and Percentage Increase/Decrease (Std 2-X) Tagged With: Band 4, smc-1125-10-Tax Tables, smc-1125-40-Medicare Levy, smc-831-10-Tax Tables, smc-831-40-Medicare Levy

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