Taxation
1) Find the net weekly take-­‐home pay in each of the following. a) Betty receives a wage of $1538 a week and has deductions of $337 for tax and $138 for superannuation b) Jim receives $711 a week and has $68 deducted for tax c) Jack’s wage is $927 a week and he has $157 deducted for tax $27 deducted for Health Insurance and $10.30 deducted for union fees 2) The tax table below allows taxpayers to work out their tax payable Use the table to find the tax payable on taxable incomes of a) $9870 b) $39600 c) $83500 d) $200 000 3) Jill earns $48 000 each year as a shop assistant and an extra $1500 from a part time job. a) Calculate her annual salary b) Use the tax table to find the income tax payable c) What is his annual net income after tax d) What is her approximate fortnightly net income to the nearest cent after tax? ANSWERS Question 1 a) $1538 – $337 – $138 = $1063 b) $711 – $68 = $643 c) $927 – $157 – $27 -­‐ $10.30 = $732.70 Question 2 a) Nil b) $3572 + 0.325 x ($39 600 – $37 000) = $4417 c) $17 547 + 0.37 x ($83 500 – $80 000) = $18842 d) $54547 + 0.45 x (200 000 – 180 000) = $63 547 Question 4 a) Annual salary = $48 000 + $1500 = $49 500 b) Tax payable = 3572 + 0.325($49 500 – 37 000) = $7634.50 c) Annual net income after tax = $49 500 – $7634.50 = $41 865.59 d) Approximate fortnightly net income after tax = $41 865.59 ÷ 26 = $1610.22