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Taxation
1)!
MIS85-B11i
In 1984, the Taxation Office published the following table for calculating weekly taxation
instalments on incomes greater than $751 per week.
Weekly earnings
$751 - $1276:
$1277 and over:
No General exemption
$355·65 plus 61 cents for each $1 of earnings in excess of $750.
$676·50 plus 60 cents for each $1 of earnings in excess of $1276.
Weekly earnings
$751 - $1441:
$1442 and over:
With General exemption
$276·72 plus 61 cents for each $1 of earnings in excess of $750.
$698·25 plus 60 cents for each $1 of earnings in excess of $1441.
Amounts so calculated should be rounded to the nearest 5 cents
2)!
Use this table to calculate the weekly taxation instalment for a person who claims a general
exemption and has a weekly income of $862.¤
« $345·04 »
MIS87-B11iii
Freddie receives an annual salary of $23 806. To calculate his fortnightly salary F his
14A
employer uses the formula F 
where A is his annual salary. Freddie receives a
365  25
1
holiday loading calculated at the rate of 17 % of his salary for the 4 weeks of his holiday.
2
a.
Calculate his holiday pay, before tax, to the nearest cent.
b.
After deductions his taxable income is $22 714. Use the table below to calculate
the tax payable.
Taxable income $
$1 - 4594
$4595 - 12 499
$12 500 - 19 499
$19 500 - 27 999
$28 000 - 34 999
$35 000 and over
3)!
4)!
Tax
NIL
NIL
$1976·25
$4076·25
$7986·25
$11 346·25
plus 25 cents for each $1 over $4595
plus 30 cents for each $1 over $12 500
plus 46 cents for each $1 over $19 500
plus 48 cents for each $1 over $28 000
plus 60 cents for each $1 over $35 000
« a) $2144·33 b) $5554·69 »
MIS90-B11c
Most pensions paid by Government departments are taxable. Special rebates operate in
relation to the taxation of pensioners' incomes. The maximum pensioner rebate is $430.
This reduces by 12·5 cents for every dollar earned in excess of $6892.
i.
A pensioner's total income for the year is $8200. Calculate the rebate payable.
ii.
What is the smallest income for which there is no rebate?¤
« i) $266·50 ii) $10·322 »
MIS93-B32a
The following table can be used to find the tax payable on various incomes.
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Taxable
income
5 251
17 650
20 600
20 700
35 000
36 000
50 000
Tax on the
Amount in
Column 1
Nil
2 542·00
3 264·75
3 294·25
8 799·75
9 224·75
15 734·75
Percentage Payable on
Income in Excess of
Amount in Column 1
20·5%
24·5%
29·5%
38·5%
42·5%
46·5%
47·0%
i.
ii.
5)!
Mr Allen's taxable income is $30 950. How much tax will he have to pay?
The GENeral Medicare Levy is 1·25% of taxable income. How much does the
Medicare Levy cost Mr Allen this year?
iii.
Ms Cook stated that if she reduced her income by one dollar, she would reduce her
tax by 42·5 cents. Between what two amounts of money was her taxable income?¤
« i) $7240·50 ii) $386·88 iii) $35 001 and $36 000. »
MIS94-B32a
The tables below give rates for income tax and the Medicare levy.
Taxable Income
$1 - $5 400
$5 401 - $20 700
$20 701 - $36 000
$36 001 - $50 000
$50 001 and over
Tax
Nil
Nil
$3060·00
$8 874·00
$15 314·00
plus 20 cents for each $1 over $5 400
plus 38 cents for each $1 over $20 700
plus 46 cents for each $1 over $36 000
plus 47 cents for each $1 over $50 000
Medicare Levy
If your taxable income is less than $11 888, your Medicare levy is nil.
If your taxable income is:
•
more than $11 887 but less than $12 681, your Medicare levy is 20 cents
for every dollar above $11 887;
•
more than $12 680, your Medicare levy is 1·25% of your taxable income.
i.
ii.
iii.
6)!
Ted's taxable income is $39 500. How much tax will he have to pay?
What will be Ted's Medicare levy?
Ted keeps $10 000 in a special bank account which pays interest at a rate of 5% per
annum. Ted has to pay tax on his interest at a rate of 46%.
How much does Ted earn, after tax, on this bank account in one year?¤
« i) $10 484 ii) $493·75 iii) $270 »
MIS95-B27d
The solid line on the graph shows the tax payable on taxable incomes up to $50 000 in
Australia in 1993. The broken line shows a possible 25% flat tax rate.
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16
15
14
13
12
Tax payable
(thousands
of
dollars)
11
10
9
8
7
6
5
4
3
2
1
0
0 5 10 15 20 25 30 35 40 45 50
Taxable income (thousands of dollars)
key
25% flat rate
1993 tax
i.
ii.
7)!
What was the tax payable on an income of $4000 in 1993?
Bernie's taxable income in 1993 was $15 000. What was the tax payable on his
income?
iii.
Kerry's taxable income in 1993 was $5000 more than Bernie's. How much more
tax did Kerry pay than Bernie?
iv.
How many cents in the dollar did Kerry pay in tax on the $5000?
v.
The broken line on the graph represents a flat tax rate of 25%. Suppose that the
taxation system changed to a flat tax rate of 25%. In what range of incomes would
more tax be paid under this new system?¤
« i) Zero ii) $1800 iii) $1200 iv) 24 cents in the dollar v) All incomes less than $37 000 »
MIS96-B27d
For the 1994-95 financial year, Claudia’s taxable income was $49 540.
i.
Calculate the tax on her income using the table below.
Taxable income range
$20 701 - $38 000
$38 001 - $50 000
$50 000 and over
Tax payable
$3060 plus 34c for each $1 over $20 700
$8942 plus 43c for each $1 over $38 000
$14 102 plus 47c for each $1 over $50 000
¤©BOARD OF STUDIES NSW 1984 - 2006
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ii.
8)!
The total amount of tax that Claudia had to pay is the amount calculated in part (i)
plus the Medicare levy. The Medicare levy was 1·5% of taxable income.
Calculate the total amount of tax that Claudia paid.
iii.
During the 1994-95 financial year, tax instalments of $573·30 per fortnight were
deducted from Claudia’s salary.
Calculate the refund Claudia received for the 1994-95 financial year.
iv.
For the 1995-96 financial year, Claudia’s taxable income increased by $3148.
Using the above table, calculate how much more tax (including the Medicare levy)
Claudia had to pay for 1995-96.¤
« i) $13 904·20 ii) $14 647·30 iii) $258·50 iv) $1508·38 »
MIS97-B27d
The table below gives the personal income tax rates.
Taxable Income
$0 - $5400
$5401 - $20 700
$20 701 - $38 000
$38 001 - $50 000
Over $50 000
i.
ii.
Tax payable
Nil
$0 plus 20c for each $1 over $5400
$3060 plus 34c for each $1 over $20 700
$8942 plus 43c for each $1 over $38 000
$14 102 plus 47c for each $1 over $50 000
Tax bracket
A
B
C
D
E
Find the tax payable on a taxable income of $60 000.
The graph of the taxable income against tax payable has been started below. Using
the values in the table, and your answer in part (i), complete the graph.
¤©BOARD OF STUDIES NSW 1984 - 2006
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20
19
18
17
16
15
14
13
12
11
10
Tax payable
(thousands of dollars)
9
8
7
6
5
4
3
2
1
0
iii.
0
5
10
15
20
25 30 35 40
Taxable income
(thousands of dollars)
45
50
55
60
Rosemary pays $11 400 in tax. From your graph, read off the value of her taxable
income.
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iv.
v.
What percentage of her taxable income is paid as tax?
Stefan pays 20% of his taxable income in tax. Which tax bracket (A, B, C, D or E
from the table) applies to his taxable income?
20
19
18
17
16
15
14
13
12
Tax payable
(thousands of dollars) 11
10
9
8
7
6
5
4
3
2
1
0
0
5 10 15 20 25 30 35 40 45 50 55 60
Taxable income
(thousands of dollars)
« i) $18 802 ii)
iii) $43 500 iv) 26·2% (to 1 dp) v) B »
9)!
MIS99-27c
The table below gives personal income tax rates.
Taxable Income
$0 – $5500
$5501 – $21 200
$21 201 – $39 400
$39 401 – $54 200
Over $54 200
i.
Tax Payable
Nil
Nil plus 20 cents for each $1 over $5500
$3140 plus A for each $1 over $21 200
$9146 plus 44 cents for each $1 over $39 400
$15 658 plus 48 cents for each $1 over $54 200
Sonia has a taxable income of $45 000. Use the table to calculate the tax on Sonia’s
income.
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ii.
10)!
Sonia must also pay the Medicare levy of 1·5% of taxable income. Calculate the
amount Sonia must pay for Medicare.
iii.
Throughout the year Sonia has $460 tax per fortnight deducted from her salary.
How much does Sonia owe the tax department at the end of the financial year?
iv.
This table was designed so that a person with a taxable income of $35 000 would
pay 22% of that income in tax (not including the Medicare levy). What is the value
of A in the table?¤
« i) $11 610 ii) $675 iii) $325 iv) 33 cents »
GEN01-10
The table shows personal income tax rates.
Taxable income
$0 - $6 000
$6 001 - $20 000
$20 001 - $50 000
$50 001 - $60 000
$60 001 and over
11)!
12)!
13)!
Tax on this income
Nil
17 cents for each $1 over $6 000
$2 380 plus 30 cents for each $1 over $20 000
$11 380 plus 42 cents for each $1 over $50 000
$15 580 plus 47 cents for each $1 over $60 000
Sandra has a grass income of $60 780 and deductions that total $2420. What is the tax
payable on Sandra’s taxable income?
(A) $13 526·60 (B) $14 891·20 (C) $15 946·60 (D) $17 084·00¤
«B »
GEN01-27a
George buys a television for $574·20, including 10% GST. What is the value of the GST
component? ¤
« $52∙20 »
GEN02-23a
Jordan’s gross pay is $1500 per fortnight.
i.
Fortnightly deductions from Jordan’s gross pay are:
 $266·17 for tax;
 $7·88 for union fees;
 $16·25 for private health insurance.
Calculate his fortnightly net pay.
1
ii.
Jordan is paid an annual leave loading of 17 % of 4 weeks' gross pay. Calculate
2
his annual leave loading.
iii.
Jordan visits Italy on his holidays. He pays 180 euros for a pair of boots. This price
includes a value added tax of 20%.
1. What is the price of the boots before the tax was added?
2. How much is 180 euros in Australian dollars if $A1 is worth 0·58 euros? ¤
« i) $1206∙70 ii) $525 iii) 1) 150 euros 2) $310∙34 »
GEN03-20
Iliana buys several items at the supermarket. The docket for her purchases is shown.
¤©BOARD OF STUDIES NSW 1984 - 2006
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XYZ SUPERMARKET
27/04/03
Milk 1 L
*Pepsi 125 L
*Disinfectant
*Tea Tree Oil
Spinach
Soup
12.53
$119
$129
$723
$413
$164
$157
Total
$1705
10% GST Included
In Cost of Taxable Items
* = Taxable Items
What is the amount of GST included in the total?
(A) $115
(B) $127
(C) $155
(D) $171¤
«A »
14)!
GEN03-24b
Vicki earns a taxable income of $58 624 from their job with an insurance company. She
pays $14 41080 tax on this income.
i.
Vicki has a second job which pays $900 gross income per month. What is Vicki’s
total annual taxable income from both jobs, assuming that she has no allowable tax
deductions?
ii.
Use the tax table below to calculate the total tax payable on her income from both
jobs.
Taxable income
$0 - $6000
$6001 - $22 000
$22 001 - $55 000
$55 001 - $66 000
$66 001 and over
Tax payable
NIL
18 cents for each $1 over $6000
$2880 plus 30 cents for each $1 over $22 000
$12 780 plus 45 cents for each $1 over $55 000
$17 730 plus 48 cents for each $1 over $66 000
Show that Vicki's monthly net income from her second job is $48644.
Vicki plans to take a holiday in two years time which she estimates will cost
$12 000. At the end of each month, Vicki invests the net income from her second
job in an account which pays 4% per annum, compounded monthly. Will she have
enough in this account, immediately after the twenty-fourth payment, to pay for her
holiday? Justify your answer with calculations.¤
« i) $69 424 ii) $19 373∙52 ii) Proof iv) Yes. She will have $12 133∙21 in her account »
GEN04-10
Using the tax table, determine the tax payable on a taxable income if $47 000
iii.
iv.
15)!
¤©BOARD OF STUDIES NSW 1984 - 2006
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Taxable income
$0 - $6000
$6001 - $22 000
$22 001 - $45 000
$45 001 - $60 000
$60 001 and over
(A) $831040
16)!
17)!
18)!
Tax on this income
NIL
16 cents for each $1 over $6000
$2560 plus 25 cents for each $1 over $22 000
$8310 plus 40 cents for each $1 over $45 000
$14 310 plus 48 cents for each $1 over $60 000
(B) $910960
(C) $911000
(D) $10 31040¤
« C »
GEN04-17
Rita purchased a camera for $880 while on holidays in Australia. This price included 10%
GST. When she left Australia she received a refund of the GST. What was Rita’s refund?
(A) $80
(B) $88
(C) $792
(D) $800¤
« A »
Gen05-6
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?
(A) $750
(B) $825
(C) $900
(D) $975¤
« B »
Gen06-22
This income tax table is used to calculate Evelyn’s tax payable.
Taxable Income
$0 - $20 000
$20 001 - $45 000
$45 001 - $70 000
$70 001 and above
Tax on Taxable Income
Nil
Nil plus 10 cents for each $1 over $20 000
$2500 plus 35 cents for each $1 over $45 000
$11 250 plus 52 cents for each $1 over $70 000
Evelyn’s taxable income increases from $50 000 to $80 000. What percentage of her
increase will she pay in additional tax?
(A) 1525%
(B) 407%
(C) 435%
(D) 52%¤
« B »
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