smc-831-10-Tax Tables

Financial Maths, STD2 F1 2023 HSC 37

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

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

A person with a taxable income of $90 000 pays 25.8% of that income in tax (excluding any levies).

What is the value of `X` in the table? (3 marks)

Show Answers Only

`44\ text{cents}`

Show Worked Solution

`text{Tax paid}\ =90\ 000 xx 0.258=$23\ 220`

`text{Equating with tax payable formula in the table:}`

`23\ 220`	`=18\ 292+X(90\ 000-78\ 800)`
`X(11\ 200)`	`=23\ 220-18\ 292`
`X`	`=4928/(11\ 200)`
	`=0.44\ text{dollars}`
	`=44\ text{cents}`

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)

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`$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 2020 HSC 20

The table shows the income tax rates for the 2019 – 2020 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 – \$37 000}\rule[-1ex]{0pt}{0pt} & \text{19 cents for each \$1 over \$18 200}\\
\hline
\rule{0pt}{2.5ex}\text{\$37 001 – \$90 000}\rule[-1ex]{0pt}{0pt} & \text{\$3572 plus 32.5 cents for each \$1 over \$37 000}\\
\hline
\rule{0pt}{2.5ex}\text{\$90 001 – \$180 000}\rule[-1ex]{0pt}{0pt} & \text{\$20 797 plus 37 cents for each \$1 over \$90 000}\\
\hline
\rule{0pt}{2.5ex}\text{\$180 001 and over}\rule[-1ex]{0pt}{0pt} & \text{\$54 097 plus 45 cents for each \$1 over \$180 000}\\
\hline
\end{array}

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)

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`$3111.40`

Show Worked Solution

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

`text(Tax payable on $122 680)`

`=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 2019 HSC 32

The table shows the income tax rates for the 2018-2019 financial year.

The Medicare levy is calculated as 2% of taxable income.

For the 2018-2019 financial year, Charlie pays a Medicare levy of $1934.80.

Calculate the tax payable on Charlie's taxable income. (3 marks)

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`$23\ 290.80`

Show Worked Solution

`text(2% taxable income)`	`= 1934.80`
`text(taxable income)`	`= 1934.80/0.02`
	`= $96\ 740`

`:.\ text(Tax payable)`	`= 20\ 797 + 0.37 xx (96\ 740 – 90\ 000)`
	`= 20\ 797 + 2493.80`
	`= $23\ 290.80`

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`.

Use the table to calculate the tax payable by Luke this year. (2 marks)

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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)

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`$26\ 038`
`$10\ 584`

Show Worked Solution

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

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

ii. `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.

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

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`$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`
	`= $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.

Determine Theo’s taxable income. (1 mark)

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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}\text{\$0 – \$18 200}\rule[-1ex]{0pt}{0pt} & \text{Nil}\\
\hline
\rule{0pt}{2.5ex}\text{\$18 201 – \$37 000}\rule[-1ex]{0pt}{0pt} & \text{19 cents for each \$1 over \$18 200}\\
\hline
\rule{0pt}{2.5ex}\text{\$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}\text{\$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}\text{\$180 001 and over}\rule[-1ex]{0pt}{0pt} & \text{\$54 547 plus 45 cents for each \$1 over \$180 000}\\
\hline
\end{array}

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

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`$80\ 021`
`$17\ 554.77`
`$1369.81\ text(refund)`

Show Worked Solution

i. `text(Taxable income)`

`= 82\ 521 + 10\ 920-13\ 420`

`= $80\ 021`

ii. `text(Tax payable)`

`= 17\ 547 + (80\ 021-80\ 000) xx 0.37`

`= $17\ 554.77`

iii. `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 2006 HSC 22 MC

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

Evelyn’s taxable income increases from $50 000 to $80 000.

What percentage of her increase will she pay in additional tax?

`text(15.25%)`
`text(40.7%)`
`text(43.5%)`
`text(52%)`

Show Answers Only

`B`

Show Worked Solution

`text(Tax on $50 000)`	`= 2500 + 0.35 xx (50\ 000-45\ 000)`
	`= 2500 + 1750`
	`= $4250`

`text(Tax on $80 000)`	`= 11\ 250 + 0.52 xx (80\ 000-70\ 000)`
	`= 11\ 250 + 5200`
	`= $16\ 450`

`:.\ text(Extra tax)`	`= 16\ 450-4250`
	`= $12\ 200`

`:.\ text(% Increase paid in tax)`

`= (12\ 200) / (30\ 000) xx 100`

`=\ text(40.66… %)`

`=> B`

Financial Maths, STD2 F1 2004 HSC 10 MC

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

$8310.40
$9 109.60
$9 110.00
$10 310.40

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`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.

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)

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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)

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

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`text(9.1%)`
`$41\ 145`
`$8443.50`

Show Worked Solution

i.	`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(%)`

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

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

iii.	`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?

$5424.40
$10 824.40
$16 224.40
$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`

Algebra, STD2 A2 2010 HSC 27c

The graph shows tax payable against taxable income, in thousands of dollars.

2010 27c

Use the graph to find the tax payable on a taxable income of $21 000. (1 mark)

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Use suitable points from the graph to show that the gradient of the section of the graph marked `A` is `1/3`. (1 mark)

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How much of each dollar earned between $21 000 and $39 000 is payable in tax? (1 mark)

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Write an equation that could be used to calculate the tax payable, `T`, in terms of the taxable income, `I`, for taxable incomes between $21 000 and $39 000. (2 marks)

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`$3000\ \ \ text{(from graph)}`
`1/3`
`33 1/3\ text(cents per dollar earned)`
`text(Tax payable on)\ I = 1/3 I\-4000`

Show Worked Solution

`text(Income on)\ $21\ 000=$3000\ \ \ text{(from graph)}`

ii. `text(Using the points)\ (21,3)\ text(and)\ (39,9)`

♦♦ Mean mark 25%

`text(Gradient at)\ A`	`= (y_2\-y_1)/(x_2\ -x_1)`
	`= (9000-3000)/(39\ 000 -21\ 000)`
	`= 6000/(18\ 000)`
	`= 1/3\ \ \ \ \ text(… as required)`

iii. `text(The gradient represents the tax applicable to each dollar)`

♦♦♦ Mean mark 12%!
MARKER’S COMMENT: Interpreting gradients is an examiner favourite, so make sure you are confident in this area.

`text(Tax)`	` = 1/3\ text(of each dollar earned)`
	` = 33 1/3\ text(cents per dollar earned)`

iv. `text( Tax payable up to $21 000 = $3000)`

`text(Tax payable on income between $21 000 and $39 000)`

♦♦♦ Mean mark 15%.
STRATEGY: The earlier parts of this question direct students to the most efficient way to solve this question. Make sure earlier parts of a question are front and centre of your mind when devising strategy.

` = 1/3 (I\-21\ 000)`

`:.\ text(Tax payable on)\ \ I`	`= 3000 + 1/3 (I\-21\ 000)`
	`= 3000 + 1/3 I\-7000`
	`= 1/3 I\-4000`

Financial Maths, STD2 F1 2013 HSC 27b

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

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)

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`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`
	`= $1209.50`

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