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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)

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 2011 HSC 23a

Aiden has a gross salary of $61 480. He has tax deductions of $400 for professional memberships, $1800 in work-related travel, and $500 in charitable donations.

The Medicare levy is 1.5% of his taxable income.

Calculate Aiden’s Medicare levy.   (3 marks)

Show Answers Only

`$882.60`

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)` `=400 + 1800 + 500`
  `=$2700`
`text(Taxable)` `= \ \text(Gross Income – deductions)`
  `=61\ 480-2700`
  `=$58\ 780`
`text(Medicare Levy)` `=\ text(1.5%)\ xx 58\ 780`
  `=$882.60`

`:.\ text(Aiden’s Medicare levy is)\ $882.60`

v1 Financial Maths, STD2 F1 2005 HSC 6 MC

Leo’s gross income last year was $48 000. He had allowable tax deductions of $3000. Leo paid 1.5% of his taxable income for the Medicare levy.

How much was Leo’s Medicare levy?

  1. $600
  2. $635
  3. $675
  4. $720
Show Answers Only

`C`

Show Worked Solution
`text(Taxable income)` `= \text(Gross income)-\text(Deductions)`
  `= 48\ 000-3000`
  `= $45\ 000`
   
`:. \ \text(Medicare Levy)` `= 1.5\% × 45\ 000`
  `= $675`

 
`=> C`

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.
 

 
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`
  `= $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}\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}

  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
  1. `$80\ 021`
  2. `$17\ 554.77`
  3. `$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 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 – 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`
  `= $1209.50`

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