SmarterEd

Aussie Maths & Science Teachers: Save your time with SmarterEd

v1 Financial Maths, STD2 F1 2007 HSC 26bii

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

Isla purchased photography equipment for $4200.

  1. 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)

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

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

Show Answers Only

a.   \(\$38\,790\)

b.   \(\$3294.40\)

Show Worked Solution

a.     \(\text{Income per year}=52 \ 760= $39\,520\)

 \(\text{Taxable income}= 39\ 520-350= $38\,790\)
 

b.     \(\text{Tax payable}\) \(= 0.16 \times (38\,790-18\,200)\)
    \(= 0.16 \times 20\,590\)
    \(= $3294.40\)

v1 Financial Maths, STD2 F1 2023 HSC 37

The table shows personal income tax rates for different taxable incomes for a particular country.

\begin{array}{|l|l|}
\hline
\rule{0pt}{2.5ex}\text{Taxable income} \rule[-1ex]{0pt}{0pt}& \quad \quad \quad \quad  \quad \quad \quad\text{Tax payable}\\
\hline
\rule{0pt}{2.5ex}\$0 - \$11\,000 \rule[-1ex]{0pt}{0pt}& \text{Nil} \\
\hline
\rule{0pt}{2.5ex}\$11\,001 - \$42\,400 \rule[-1ex]{0pt}{0pt}& \text{20 cents for each \$1 over \$11 000} \\
\hline
\rule{0pt}{2.5ex}\$42\,401 - \$78\,800 \rule[-1ex]{0pt}{0pt}& \text{\$6280 plus 33 cents for each \$1 over \$42 400} \\
\hline
\rule{0pt}{2.5ex}\$78\,801 - \$108\,400 \rule[-1ex]{0pt}{0pt}& \text{\$18 292 plus}\ \textbf{X} \ \text{cents for each \$1 over \$78 800} \\
\hline
\rule{0pt}{2.5ex}\$108\,401 \ \text{and over} \rule[-1ex]{0pt}{0pt} & \text{\$31 316 plus 52 cents for each \$1 over \$108 400} \\
\hline
\end{array}

A person with a taxable income of $88 000 pays 25.8% of that income in tax (excluding any levies).

What is the value of \(\textbf{X}\) in the table?   (3 marks)

Show Answers Only

\(\text{48 cents}\)

Show Worked Solution

\(\text{Tax paid}=88\,000 \times 0.258=\$22\,704\)

\(\text{Equating with tax payable formula in the table:}\)

\(22\,704\) \(=18\,292+X(88\,000-78\,800)\)  
\(X(9200)\) \(=22\,704-18\,292\)  
\(X\) \(=\dfrac{4412 }{9200}\)  
  \(=0.48 \ \text{dollars}\)  
  \(=48\ \text{cents}\)  

v1 Financial Maths, STD2 F1 2021 HSC 22

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

\begin{array}{|l|l|}
\hline
\rule{0pt}{2.5ex}\text{Taxable income} \rule[-1ex]{0pt}{0pt}& \quad \quad \quad \quad \text{Tax payable on this income} \\
\hline
\rule{0pt}{2.5ex}0 - \$18 200 \rule[-1ex]{0pt}{0pt}& \text{Nil}\\
\hline
\rule{0pt}{2.5ex}\$18\,201 - \$45\,000 \rule[-1ex]{0pt}{0pt}& \text{19 cents for each \$1 over \$18 200} \\
\hline
\rule{0pt}{2.5ex}\$45\,001-\$120\,000 \rule[-1ex]{0pt}{0pt}& \text{\$5092 plus 32.5 cents for each \$1 over \$45 000} \\
\hline
\rule{0pt}{2.5ex}\$120\,001 - \$180\,000 \rule[-1ex]{0pt}{0pt}& \text{\$29 467 plus 37 cents for each \$1 over \$120 000} \\
\hline
\rule{0pt}{2.5ex}\$180\,001 \ \text{and over} \rule[-1ex]{0pt}{0pt}& \text{\$51 667 plus 45 cents for each \$1 over \$180 000} \quad \\
\hline
\end{array}

Stephanie earns a gross annual salary of $96 000. She claims allowable tax deductions of $1250 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

\(\$23\,035\)

Show Worked Solution

\(\text{Taxable income}=96\,000-1250-350=$94\,400\)

\(\text{Income tax}=5092+0.325(94\,400-45\,000)=$21\,147\)

\(\text{Medicare Levy}=0.02 \times 94\,400=\$1888\)

\(\therefore \ \text{Total tax payable}=21\,147 + 1888= $23\,035\)

v1 Financial Maths, STD2 F1 2006 HSC 22 MC

This income tax table is used to calculate Daniel’s tax payable.

\begin{array}{|l|l|}
\hline
\rule{0pt}{2.5ex}\text{Taxable income} \rule[-1ex]{0pt}{0pt}& \quad \quad \quad \quad \quad \quad \quad \quad \text{Tax payable} \\
\hline
\rule{0pt}{2.5ex}\text{\$0 - \$11 000}\rule[-1ex]{0pt}{0pt}& \text{Nil} \\
\hline
\rule{0pt}{2.5ex}\text{\$11 001 - \$42 400} \rule[-1ex]{0pt}{0pt}& \text{20 cents for each \$1 over \$11 000} \\
\hline
\rule{0pt}{2.5ex}\text{\$42 401 - \$78 800} \rule[-1ex]{0pt}{0pt}& \text{\$6280 plus 33 cents for each \$1 over \$42 400} \\
\hline
\rule{0pt}{2.5ex}\text{\$78 801 - \$108 400} \rule[-1ex]{0pt}{0pt}& \text{\$18 292 plus 37 cents for each \$1 over \$78 800} \\
\hline
\rule{0pt}{2.5ex}\text{\$108 401 and over} \rule[-1ex]{0pt}{0pt}& \text{\$31 316 plus 48 cents for each \$1 over \$108 400}\quad\\
\hline
\end{array}

Daniel’s taxable income increases from $45 000 to $80 000.

What percentage of his increase will he pay in additional tax?

  1. 22.7%
  2. 25.5%
  3. 33.1%
  4. 40.6%
Show Answers Only

\(C\)

Show Worked Solution

\(\text{Tax on}\ \$45\,000=6280+0.33\times(45\,000-42\,400)=\$7138\)

\(\text{Tax on} \ \$80\,000=18\,292+0.37 \times (80\,000-78\,800)=\$18\,736\)

\(\text{Extra tax}=18\,736-7138=$11\,598\)

\(\therefore \ \text{% of income increase paid in tax}\)

\(=\dfrac{11\,598}{35\,000} \times 100\)

\(=33.14\%\)
 

\(\Rightarrow C\)