SmarterEd

Aussie Maths & Science Teachers: Save your time with SmarterEd

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, 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 2005 HSC 6 MC

Janet’s gross income last year was $60 000. She had allowable tax deductions of $5000. Janet paid 1.5% of her taxable income for the Medicare levy.

How much was Janet’s Medicare levy?

  1. $750
  2. $825
  3. $900
  4. $975
Show Answers Only

`B`

Show Worked Solution
`text(Taxable income)` `=text(Gross income)-text(Deductions)`
  `= 60\ 000-5000= $55\ 000`

 `:.\ text(Medicare Levy)=text(1.5%) × $55\ 000= $825`

`=> B`

Financial Maths, STD2 F1 2011 HSC 23a

Sri has a gross salary of  $56 350. She has tax deductions of $350 for union fees, $2000 in work-related expenses and $250 in donations to charities.

The Medicare levy is 1.5% of her taxable income.

Calculate Sri’s Medicare levy.   (3 marks)

Show Answers Only

 `$806.25`

Show Worked Solution
MARKER’S COMMENT: Clear separate steps results in less calculation errors and more marks for working when errors are made.

`text(Deductions)=350+2000+250=$2600`

`text(Taxable)` `=text(Gross Income)-text(deduct)`
  `=56\ 350-2600=$53\ 750`

`text(Medicare Levy)=text(1.5%) xx 53\ 750=$806.25`

`:.\ text(Sri’s Medicare levy is)\ \ $806.25`

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.`