WorkSHEET 2.2
Taxation
Name: ___________________________
Note: A table of tax rates and the Medicare levy are included at the end of this Worksheet.
1
Calculate the income tax on $45 000.
Tax = $4200 + 0.3  ($45 000 – $34 000)
Tax = $7500
2
Francis has an annual income of $91 000. She
has to pay income tax and the Medicare levy
on this income. Calculate the total tax payable.
Tax = $18 000 + 0.4  ($91 000 – $80 000)
Tax = $22 400
Medicare levy = 1.5% of $91 000
Medicare levy = 0.015  $91 000
Medicare levy = $1365
Total tax = $22 400 + $1365
Total tax = $23 765
3
Irene earns $660 per week.
(a) Calculate Irene’s annual income.
(a) Annual income = 52  $660
Annual income = $34 320
(b)
Calculate the income tax on this annual
income.
(b) Tax = $4200 + 0.3  ($34 320 – $34 000)
Tax = $4296
(c)
Calculate the Medicare levy.
(c) Medicare levy = 1.5% of $34 320
Medicare levy = 0.015  $34 320
Medicare levy = $514.80
(d)
Calculate the total tax payable.
(d) Total annual tax = $4296 + $514.80
Total annual tax = $4810.80
(e)
Calculate the amount of tax to be
deducted weekly from Irene’s pay.
(e) Weekly tax = $4810.80  52
Weekly tax = $92.52
© John Wiley & Sons Australia, Ltd 2008
1
Maths Quest A Year 11 for Queensland 2e
4
WorkSHEET 2.2 Taxation
Karen earns $3600 per fortnight. Calculate the
PAYG tax owing on this fortnightly income.
(Remember to include the Medicare levy.)
Annual income = 26  $3600
Annual income = $93 600
Tax = $18 000 + 0.4  ($93 600 – $80 000)
Tax = $23 440
Medicare levy = 1.5% of $93 600
Medicare levy = 0.015  $93 600
Medicare levy = $1404
Total annual tax = $23 440 + $1404
Total annual tax = $24 844
Fortnightly tax = $24 844  26
Fortnightly tax = $955.54
5
Last year, Alan had a taxable income of
$108 450 and he paid $33 577 in PAYE tax.
Alan has no private health insurance and so
must pay the Medicare levy surcharge of an
extra 1% of gross pay. Determine the amount
of Alan’s tax refund or tax debt.
Tax = $18 000 + 0.4  ($108 450 – $80 000)
Tax = $29 380
Medicare levy (including surcharge)
Medicare levy = 2.5% of $108 450
Medicare levy = 0.025  $108 450
Medicare levy = $2711.25
Total tax = $29 380 + $2711.25
Total tax = $32 091.25
Refund = $33 577.00 – $32 091.25
Refund = $1485.75
6
Jeremy earned $57 200 from his salary and
$550 from bank interest. He had $1730 of tax
deductions and paid PAYG tax of $11 300.
Determine whether or not Jeremy has paid
sufficient tax.
Taxable income = $57 200 + $550 – $1730
Taxable income = $56 020
Tax = $4200 + 0.3  ($56 020 – $34 000)
Tax = $10 806
Medicare levy = 1.5% of $56 020
Medicare levy = 0.015  $56 020
Medicare levy = $840.30
Total tax = $10 806 + $840.30
Total tax = $11 646.30
Debt = $11 646.30 – $11 300
Debt = $346.30
© John Wiley & Sons Australia, Ltd 2008
2
Maths Quest A Year 11 for Queensland 2e
WorkSHEET 2.2 Taxation
7
The pre-GST price of a set of golf clubs is
$450. Calculate the GST payable on the
purchase of the golf clubs.
GST = 10% of $450
GST = 0.1  $450
GST = $45
8
The pre-GST price of a tennis racquet is $80.
Calculate the selling price including GST.
GST = 10% of $80
GST = 0.1  $80
GST = $8
Selling price = $80 + $8
Selling price = $88
9
A pizza meal costs $16.50 including GST.
Calculate the pre-GST price of the meal.
GST = 111 of $16.50
GST = $1.50
Cost pre-GST = $16.50 – $1.50
Cost pre-GST = $15
10
A VAT of 12.5% is levied in New Zealand.
Calculate the VAT paid if Georgia pays $90
(including VAT) for a day trip.
112.5% of cost = $90
Cost = $90  1.125
= $80
VAT = $10
© John Wiley & Sons Australia, Ltd 2008
3
Maths Quest A Year 11 for Queensland 2e
WorkSHEET 2.2 Taxation
Taxation rates
Taxable income
$0 – $6000
$6001 – $34 000
$34 001 – $80 000
$80 001 – $180 000
Over $180 000
Tax on this income
Nil
15c for each $1 over $6000
$4200 plus 30c for each $1 over $34 000
$18 000 plus 40c for each $1 over $80 000
$58 000 plus 45c for each $1 over $180 000
Medicare levy
The basic Medicare levy is 1.5% of taxable income.
The Medicare levy surcharge applies for those without private hospital cover.
The income threshold upon which families are charged the Medicare levy surcharge
(an extra 1% of gross income) is $150 000 per annum. This threshold changes
depending on the number of children in the family.
For a single person, the surcharge applies if their income exceeds $100 000 per annum.
© John Wiley & Sons Australia, Ltd 2008
4