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Financial Maths, STD2 F1 EQ-Bank 28

At the end of the 2024-2025 financial year, Marcus had a taxable income of $168 000.

  1. The table shows the income tax rate for Australian residents for the 2024-2025 financial year.

\(\begin{array} {|l|l|}\hline \rule{0pt}{2.5ex}\text{ Taxable income}\rule[-1ex]{0pt}{0pt} & \text{ Tax payable}\\\hline \rule{0pt}{2.5ex}\text{\$0 – \$18 200}\rule[-1ex]{0pt}{0pt} & \text{Nil}\\\hline \rule{0pt}{2.5ex}\text{\$18 201 – \$45 000}\rule[-1ex]{0pt}{0pt} & \text{16 cents for each \$1 over \$18 200}\\\hline\rule{0pt}{2.5ex}\text{\$45 001 – \$135 000}\rule[-1ex]{0pt}{0pt} & \text{\$4288 plus 30 cents for each \$1 over \$45 000}\\\hline\rule{0pt}{2.5ex}\text{\$135 001 – \$190 000}\rule[-1ex]{0pt}{0pt} & \text{\$31 288 plus 37 cents for each \$1 over \$135 000}\\\hline\rule{0pt}{2.5ex}\text{\$190 001 and over}\rule[-1ex]{0pt}{0pt} & \text{\$51 638 plus 45 cents for each \$1 over \$190 000}\\\hline\end{array}\)

  1. Using the table, calculate Marcus's tax payable.   (3 marks)

  2. The Medicare levy is 2% of taxable income.
  3. Calculate the Medicare levy payable by Marcus.   (1 mark)

Show Answers Only

a.    \(\$43\,498\)

b.    \(\$3360\)

Show Worked Solution

a.    \(\text{Calculate tax payable:}\)

\(\text{Tax payable}\) \(=31\,288+0.37\times (168\,000-135\,000)\)
  \(=31\,288+0.37\times 33\,000\)
  \(=31\,288+12\,210\)
  \(=\$43\,498\)

 

b.    \(\text{Calculate Medicare levy:}\)

\(\text{Medicare levy}=0.02\times 168\,000=\$3360\)

Financial Maths, STD1 F1 2025 HSC 19

At the end of the 2024−2025 financial year, Alex’s taxable income was $148 600.

  1. The table shows the income tax rate for Australian residents for the 2024−2025 financial year.  

\begin{array} {|l|l|}
\hline
\rule{0pt}{2.5ex}\textit{    Taxable income}\rule[-1ex]{0pt}{0pt} & \textit{    Tax payable}\\
\hline
\rule{0pt}{2.5ex}\text{\$0 – \$18 200}\rule[-1ex]{0pt}{0pt} & \text{Nil}\\
\hline
\rule{0pt}{2.5ex}\text{\$18 201 – \$45 000}\rule[-1ex]{0pt}{0pt} & \text{16 cents for each \$1 over \$18 200}\\
\hline
\rule{0pt}{2.5ex}\text{\$45 001 – \$135 000}\rule[-1ex]{0pt}{0pt} & \text{\$4288 plus 30 cents for each \$1 over \$45 000}\\
\hline
\rule{0pt}{2.5ex}\text{\$135 001 – \$190 000}\rule[-1ex]{0pt}{0pt} & \text{\$31 288 plus 37 cents for each \$1 over \$135 000}\\
\hline
\rule{0pt}{2.5ex}\text{\$190 001 and over}\rule[-1ex]{0pt}{0pt} & \text{\$51 638 plus 45 cents for each \$1 over \$190 000}\\
\hline
\end{array}

  1. Using the table, calculate Alex’s tax payable.   (3 marks)

  2. The Medicare levy is 2% of taxable income.
  3. Calculate the Medicare levy payable by Alex.   (1 mark)

Show Answers Only

a.    \($36\ 320\)

b.    \($2972\)

Show Worked Solution
a.     \(\text{Tax payable}\) \(=31\ 288+0.37\times(148\ 600-135\ 000)\)
    \(=31\ 288+0.37\times 13\ 600\)
    \(=31288+5032=$36\ 320\)

 

b.    \(\text{Medicare}=0.02\times 148\ 600=$2972\)


♦♦ Mean mark (b) 34%.

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)

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`  

v1 Financial Maths, STD2 F1 2007 HSC 26b

Isla is in her third year working as a freelance photographer.

  1. Isla purchased photography equipment for $4200.
  2. After 3 years it has depreciated to $3150 using the straight-line method.  
  3. Calculate the rate of depreciation per year as a percentage.   (2 marks)

  4. Isla earns $760 per week. Calculate her taxable income for this year if the only allowable deduction is the amount of depreciation of her photography equipment in the third year of use.   (1 mark)

  5. Use this tax table to calculate Isla’s tax payable.  (2 marks)

    Taxable income Tax payable
    $0 − $11 000 Nil
    $11 001 − $42 400 20 cents for each $1 over $11 000
    $42 401 − $78 800 $6280 plus 33 cents for each $1 over $42 400
    $78 801 − $108 400 $18 292 plus `X` cents for each $1 over $78 800
    $108 401 and over $31 316 plus 48 cents for each $1 over $108 400

Show Answers Only
  1. `text(8.3%)`
  2. `$38\ 790`
  3. `$5563.00`
Show Worked Solution
i.    `S = V_0 - Dn`
  `S = $3150,\ \ \ V_0 = 4200,\ \ \ n = 3`
`3150` `= 4200 - D xx 3`
`3D` `= 1050`
`D` `= $350`

 

`:.\ \text{Rate of depreciation per year}`

`= 350 / 4200 xx 100`

`= 8.3 \text{(%)}`

ii.    `\text{Income per year}` `= 52 xx 760`
    `= $39\ 520`
`\text{Taxable income}` `= \text{Income - Deduction}`
  `= 39\ 520-350`
  `= $38\ 790`
iii.    `\text{Tax payable}` `= 0.2(38\,790-11\,000)`
    `= 0.2 xx 27\,790`
    `= $5558.00`

Financial Maths, STD1 F1 2022 HSC 28

Julie has a gross annual salary of $67 000. During the year she also received an income of $780 from investments and had tax deductions totalling $1000.

The table below shows the income tax rates for the 2021–2022 financial year.
 

 

Calculate the tax payable on Julie's taxable income, ignoring the Medicare levy.  (3 marks)

Show Answers Only

`$12\ 170.50`

Show Worked Solution
`text{Taxable Income}`  `=text{Total Income – Deductions}`  
  `=67\ 000 + 780-1000`  
  `=$66\ 780`  

 

`:.\ text{Tax Payable}` `=5092+0.325(66\ 780-45\ 000)`  
  `=5092+7078.50`  
  `=$12\ 170.50`  

♦ Mean mark 49%.

Financial Maths, STD2 F1 2021 HSC 22

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

   

William has a gross annual salary of `$84\ 000`. He has allowable tax deductions of `$900` for home-office equipment and `$474` for union fees. William must also pay a Medicare Levy of 2% of his taxable income.

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

Show Answers Only

`$18\ 972.97`

Show Worked Solution

`text(Taxable income)=84\ 000-900-474=$82\ 626`

`text(Income tax)=5092+0.325(82\ 626-45\ 000)=$17\ 320.45`

`text(Medicare Levy)=0.02 xx 82\ 626=$1652.52` 

`:.\ text(Total tax payable)=17\ 320.45 + 1652.52=$18\ 972.97`

Financial Maths, STD1 F1 2020 HSC 27

The table shows the income tax rates for the 2019 – 2020 financial year.

For the 2019 – 2020 financial year, Wally had a taxable income of $122 680. During the year, he paid $3000 per month in Pay As You Go (PAYG) tax.

Calculate Wally's tax refund, ignoring the Medicare levy.   (3 marks)

Show Answers Only

`$3111.40`

Show Worked Solution

`text(Tax paid)=12 xx 3000=$36\ 000`

  
`text(Tax payable on $122 680)`

♦ Mean mark 35%.

`=20\ 797 + 0.37(122\ 680-90\ 000)`

`=20\ 797 + 0.37(32\ 680)=$32\ 888.60` 

`:.\ text(Tax refund)` `=36\ 000-32\ 888.60`  
  `=$3111.40`  

Financial Maths, STD2 F1 2018 HSC 30b

Last year, Luke’s taxable income was `$87\ 000` and the tax payable on this income was `$19\ 822`. This year, Luke’s taxable income has increased by `$16\ 800`.

  1. Use the table to calculate the tax payable by Luke this year.   (2 marks)
     
    \begin{array} {|l|l|}
    \hline
    \rule{0pt}{2.5ex}\textit{    Taxable income}\rule[-1ex]{0pt}{0pt} & \textit{    Tax payable}\\
    \hline
    \rule{0pt}{2.5ex}\$0 - \$18 200\rule[-1ex]{0pt}{0pt} & \text{Nil}\\
    \hline
    \rule{0pt}{2.5ex}\$18 201 - \$37 000\rule[-1ex]{0pt}{0pt} & \text{19 cents for each \$1 over \$18 200}\\
    \hline
    \rule{0pt}{2.5ex}\$37 001 - \$87 000\rule[-1ex]{0pt}{0pt} & \text{\$3572 plus 32.5 cents for each \$1 over \$37 000}\\
    \hline
    \rule{0pt}{2.5ex}\$87 001 - $180 000\rule[-1ex]{0pt}{0pt} & \text{\$19 822 plus 37 cents for each \$1 over \$87 000}\\
    \hline
    \rule{0pt}{2.5ex}\$180 001\text{ and over}\rule[-1ex]{0pt}{0pt} & \text{\$54 232 plus 45 cents for each \$1 over \$180 000}\\
    \hline
    \end{array}

  2. How much extra money will Luke have this year, after paying tax, as a result of the increase in his taxable income? Ignore the Medicare levy.   (2 marks)

Show Answers Only

a.    `$26\ 038`

b.    `$10\ 584`

Show Worked Solution

a.    `text(Taxable income) = 87\ 000 + 16\ 800 = $103\ 800`

`:.\ text(Tax payable)` `= 19\ 822 + 0.37 (103\ 800-87\ 000)`
  `= $26\ 038`

 

b.    `text(Net income from last year)= 87\ 000-19\ 822= $67\ 178`

`text(Net income in current year)= 103\ 800-26\ 038= $77\ 762`

`:.\ text(Extra money)= 77\ 762-67\ 178= $10\ 584` 

Financial Maths, STD2 F1 2017 HSC 29b

Sabrina’s taxable income is `$86\ 725` in a particular year.

The table below is used to calculate her tax payable. In addition, she pays the Medicare levy, which is 2% of her taxable income.

\begin{array} {|l|l|}
\hline
\rule{0pt}{2.5ex}\textit{    Taxable income}\rule[-1ex]{0pt}{0pt} & \textit{    Tax payable}\\
\hline
\rule{0pt}{2.5ex}\$0 - \$18 200\rule[-1ex]{0pt}{0pt} & \text{Nil}\\
\hline
\rule{0pt}{2.5ex}\$18 201 - \$37 000\rule[-1ex]{0pt}{0pt} & \text{19 cents for each \$1 over \$18 200}\\
\hline
\rule{0pt}{2.5ex}\$37 001 - \$87 000\rule[-1ex]{0pt}{0pt} & \text{\$3572 plus 32.5 cents for each \$1 over \$37 000}\\
\hline
\rule{0pt}{2.5ex}\$87 001 - $180 000\rule[-1ex]{0pt}{0pt} & \text{\$19 822 plus 37 cents for each \$1 over \$87 000}\\
\hline
\rule{0pt}{2.5ex}\$180 001\text{ and over}\rule[-1ex]{0pt}{0pt} & \text{\$54 232 plus 45 cents for each \$1 over \$180 000}\\
\hline
\end{array}

Calculate Sabrina’s net income in that year.   (3 marks)

Show Answers Only

`$65\ 257.87`

Show Worked Solution
`text(Tax payable)` `= 3572 + 0.325(86\ 725-37\ 000)`
  `= 19\ 732.625= $19\ 732.63`

`text(Medicare levy)= 2text(%) xx 86\ 725= $1734.50`

`:.\ text(Net Income)` `= 86\ 725-(19\ 732.63 + 1734.50)`
  `= $65\ 257.87`

Financial Maths, STD2 F1 2016 HSC 26f

Theo is completing his tax return. He has a gross salary of $82 521 and income from a rental property totalling `$10\ 920`. He is claiming `$13\ 420` in allowable deductions.

  1. Determine Theo’s taxable income.   (1 mark)

  2. Using the tax table below, calculate Theo’s tax payable.   (2 marks)

\begin{array} {|l|l|}
\hline
\rule{0pt}{2.5ex}\textit{    Taxable income}\rule[-1ex]{0pt}{0pt} & \textit{    Tax payable}\\
\hline
\rule{0pt}{2.5ex}\$0 - \$18 200\rule[-1ex]{0pt}{0pt} & \text{Nil}\\
\hline
\rule{0pt}{2.5ex}\$18 201 - \$37 000\rule[-1ex]{0pt}{0pt} & \text{19 cents for each \$1 over \$18 200}\\
\hline
\rule{0pt}{2.5ex}\$37 001 - \$80 000\rule[-1ex]{0pt}{0pt} & \text{\$3572 plus 32.5 cents for each \$1 over \$37 000}\\
\hline
\rule{0pt}{2.5ex}\$80 001 - $180 000\rule[-1ex]{0pt}{0pt} & \text{\$17 547 plus 37 cents for each \$1 over \$80 000}\\
\hline
\rule{0pt}{2.5ex}\$180 001\text{ and over}\rule[-1ex]{0pt}{0pt} & \text{\$54 547 plus 45 cents for each \$1 over \$180 000}\\
\hline
\end{array}

  1. In addition to the above tax, Theo must also pay a Medicare levy of $1600.42
  2. Theo has already paid `$20\ 525` as Pay As You Go (PAYG) tax.
  3. Should Theo receive a tax refund or will he owe more tax? Justify your answer with calculations.   (2 marks)

Show Answers Only

a.    `$80\ 021`

b.    `$17\ 554.77`

c.    `$1369.81\ text(refund)`

Show Worked Solution

a.   `text(Taxable income)= 82\ 521 + 10\ 920-13\ 420= $80\ 021`

b.   `text(Tax payable)= 17\ 547 + (80\ 021-80\ 000) xx 0.37= $17\ 554.77`

c.   `text(Total tax payable)= 17\ 554.77 + 1600.42= $19\ 155.19`

`text(Tax paid > tax payable)`

`:.\ text(Refund)= 20\ 525-19\ 155.19= $1369.81`

Financial Maths, STD2 F1 2004 HSC 10 MC

Using the tax table, determine the tax payable on a taxable income of `$47\ 000`.

     

  1. `$8310.40`
  2. `$9109.60`
  3. `$9110.00`
  4. `$10\ 310.40`
Show Answers Only

`C`

Show Worked Solution

`text(Tax on $47 000)`

`= 8310 + 0.40 xx (47\ 000-45\ 000)`

`= 8310 + 800= $9110`

`=> C`

Financial Maths, STD2 F1 2007 HSC 26b

Myles is in his third year as an apprentice film editor.

  1. Myles purchased film-editing equipment for $5000.

     

    After 3 years it has depreciated to $3635 using the straight-line method.  

     

    Calculate the rate of depreciation per year as a percentage.   (2 marks)

  2. Myles earns $800 per week. Calculate his taxable income for this year if the only allowable deduction is the amount of depreciation of his film-editing equipment in the third year of use.   (1 mark)

  3. Use this tax table to calculate Myles’s tax payable.   (2 marks)
     
          

Show Answers Only

a.   `text(9.1%)`

b.   `$41\ 145`

c.   `$8443.50`

Show Worked Solution
a.    `S = V_0-Dn`
  `S = $3635,\ \ \ V_0 = 5000,\ \ \ n = 3`
`3635` `= 5000-D xx 3`
`3D` `= 1365`
`D` `= $455`

 

`:.\ text(Rate of depreciation per year)`

`= 455/5000 xx 100`

`= 9.1 text(%)`

b.    `text(Income per year)= 52 xx 800= $41\ 600`

`text(Taxable income)` `=\ text(Income – Deductions)`
  `= 41\ 600-455= $41\ 145`

 

c.    `text(Tax payable)` `= 4500 + 0.3(41\ 145-28\ 000)`
    `= 4500 + 3943.50= $8443.50`

Financial Maths, STD2 F1 2008 HSC 6 MC

Using the tax table, what is the tax payable on $43 561?

  1. $5424.40
  2. $10 824.40
  3. $16 224.40
  4. $17 424.40
Show Answers Only

`B`

Show Worked Solution

`text(Tax Payable)`

`= 5400 + 0.4 (43\ 561-30\ 000)`

`= 5400 + 5424.40= $10\ 824.40`

`=>  B`

Financial Maths, STD2 F1 2013 HSC 27b

The table shows the tax payable to the Australian Taxation Office for different taxable incomes.

2013 27b

Peta has a gross annual salary of  `$84\ 000`. She has tax deductions of `$1000` for work-related travel and `$500` for stationery. The Medicare levy that she pays is calculated at 1.5% of her taxable income.

Peta has already paid `$18\ 500` in tax.

Will Peta receive a tax refund or will she owe money to the Australian Taxation Office? Justify your answer by calculating the refund or amount owed.   (4 marks)

Show Answers Only

 `text(Peta owes the tax office $1209.50.)`

Show Worked Solution

`text(Total Deductions)=1000+500=$1500`

`text(Taxable Income)` `= text(Gross Income)-text(Total Deductions)`
  `= 84\ 000-1500= $82\ 500`

`text(Using the tax table:)`

♦ Mean mark 44%
IMPORTANT: Note that ‘Tax’ and the ‘Medicare Levy’ are calculated separately using the ‘Taxable Income’ figure and added together to find the amount owed to the ATO.
`text(Tax)` `= 17\ 547+ 0.37 xx (82\ 500-80\ 000)`
  `= 17\ 547 +925= $18\ 472`

`text(Medicare owing)=\ text(1.5%) xx 82\ 500= $1237.50`

`text(Owed to ATO)= 18\ 472+1237.50=$19\ 709.50`

`text(Tax paid)= $18\ 500`

`text(Difference owing)=19\ 709.50-18\ 500`

`:.\ text(Peta owes the tax office $1209.50.`