File - Mr HUMBLES 2014
advertisement
Financial Mathematics (FM3) Taxation Name ...................................................................... G. Georgiou 1 General Mathematics (Preliminary Course) | Taxation (FM3) Calculate the Amount of Allowable Deductions from Gross Income Calculate Taxable Income Calculate the Medicare Levy (Basic Levy only – see Tax Pack for details) Calculate the Amount of Pay As You Go (PAYG) Tax Payable or Refund Owing, using Current Tax Scales From FM1: Gross Income: A person’s pay before tax and other items are deducted. Deductions: Amounts taken out of a person’s gross pay. Net Income: A person’s gross pay minus tax minus deductions (aka take home pay). Allowable Tax Deductions: ............................................................................................. ........................................................................................................................................ ........................................................................................................................................ Taxable Income: ............................................................................................................. ........................................................................................................................................ ........................................................................................................................................ Medicare Levy: ............................................................................................................... ........................................................................................................................................ ........................................................................................................................................ Tax Payable: .................................................................................................................... ........................................................................................................................................ ........................................................................................................................................ Pay As You Earn Tax (PAYE Tax): ..................................................................................... ........................................................................................................................................ ........................................................................................................................................ 2 General Mathematics (Preliminary Course) | Taxation (FM3) Example 1 Debbie has a salary of $54 142 and her allowable tax deductions total $1163.90. During the financial year, she paid $13 495.22 in PAYE tax. Calculate her: (a) Taxable income. ........................................................................................................................................ ........................................................................................................................................ ........................................................................................................................................ (b) Income Tax Payable (using the tax table below). ........................................................................................................................................ ........................................................................................................................................ ........................................................................................................................................ ........................................................................................................................................ (c) Her tax refund. ........................................................................................................................................ ........................................................................................................................................ ........................................................................................................................................ 3 General Mathematics (Preliminary Course) | Taxation (FM3) Example 2 Sue has a taxable income of $48 270 and each week she pays $216.27 in PAYE tax. (a) Calculate her income tax payable (using the tax table below). ........................................................................................................................................ ........................................................................................................................................ ........................................................................................................................................ ........................................................................................................................................ (b) Calculate her Medicare levy (assuming the levy is 1.5% of a taxable income) and hence the total tax payable. ........................................................................................................................................ ........................................................................................................................................ ........................................................................................................................................ (c) Calculate the total amount of PAYE tax paid. ........................................................................................................................................ ........................................................................................................................................ (d) Can Sue claim a tax refund or will she have a tax debt? How much will this be? ........................................................................................................................................ ........................................................................................................................................ ........................................................................................................................................ 4 General Mathematics (Preliminary Course) | Taxation (FM3) H.S.C. Question (3) ........................................................................................................................................ ........................................................................................................................................ ........................................................................................................................................ ........................................................................................................................................ ........................................................................................................................................ ........................................................................................................................................ ........................................................................................................................................ ........................................................................................................................................ ........................................................................................................................................ ........................................................................................................................................ ........................................................................................................................................ ........................................................................................................................................ ........................................................................................................................................ 5 General Mathematics (Preliminary Course) | Taxation (FM3) Example 4 Taxable Income $0 - $5 500 $5 500 - $21 200 $21 201 - $39 400 $39 401 - $54 200 Over $54 200 Tax Payable Nil Nil plus 20c for each $1 over $5 500 $3 140 plus A for each $1 over $21 200 $9 146 plus 44 c for each $1 over $39 400 $15 658 plus 48c for each $1 over $54 200 (a) Sonia has a taxable income of $45 000. Use the table to calculate the tax on Sonia’s income. ........................................................................................................................................ ........................................................................................................................................ ........................................................................................................................................ (b) Sonia must also pay the Medicare levy of 1.5% of taxable income. Calculate the amount Sonia must pay for Medicare. ........................................................................................................................................ ........................................................................................................................................ ........................................................................................................................................ (c) 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? ........................................................................................................................................ ........................................................................................................................................ ........................................................................................................................................ (d) The 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? ........................................................................................................................................ ........................................................................................................................................ ........................................................................................................................................ ........................................................................................................................................ 6 General Mathematics (Preliminary Course) | Taxation (FM3) Example 4 Jill has a gross income of $48 270 and each week she pays $216.27 in PAYE tax. The deductions Jill has organised with her employer include health insurance of $20 a week and a Social Club Committee fee of $2 a week. Jill’s allowable tax deductions include $100 for the cleaning of her uniform, as well as $70 for the cost of driving to her training sessions. Her Medicare Levy is calculated at 1.5% of her taxable income. (a) Calculate Jill’s annual net income. ........................................................................................................................................ ........................................................................................................................................ (b) Calculate Jill’s taxable income. ........................................................................................................................................ ........................................................................................................................................ (c) Calculate Jill’s Medicare Levy. ........................................................................................................................................ ........................................................................................................................................ (d) Use the tax table below to calculate the amount of tax payable. ........................................................................................................................................ ........................................................................................................................................ ........................................................................................................................................ 7 General Mathematics (Preliminary Course) | Taxation (FM3) (e) Can Jill claim a tax refund or will she owe more tax? Justify your answer with calculations. ........................................................................................................................................ ........................................................................................................................................ ........................................................................................................................................ Activity 8 Ex 4.07 Q 1, 3, 4 Ex 4.08 Q 1, 2, 3, 4, 5 General Mathematics (Preliminary Course) | Taxation (FM3) 1. Calculate the total amount of money you earned in the financial year (July to June). PAYE Tax your contributions to tax, taken from your pay. 2. Subtract your allowable tax deductions from your total income (1) to determine your Taxable Income. Total Tax Payable is what you owe the government 6. Compare your total tax payable (5) to your PAYE tax to determine whether a tax refund is entitled or a tax debt is owed. 9 3. Use a tax table to determine your Income Tax Payable on your taxable income (2). 5. Total tax payable = income tax payable (3) + Medicare levy (4) General Mathematics (Preliminary Course) | Taxation (FM3) 4. Calculate the Medicare levy at a rate of 1.5% of the taxable income (2) Calculate the Goods and Services Tax (GST) Payable on a Range of Goods and Services GST is a tax on Goods and Services in Australia. It is calculated at 10% of the item’s value. Most items, excluding what the government defines as essentials have a GST on them. Example 5 A haircut costs $16.50 GST exclusive. What is the value after the 10% GST is charged? ........................................................................................................................................ ........................................................................................................................................ ........................................................................................................................................ ........................................................................................................................................ Example 6 In an Australian store the GST on a product is $2.20. Find the original price of the product with GST included. ........................................................................................................................................ ........................................................................................................................................ ........................................................................................................................................ ........................................................................................................................................ Example 7 A portable CD player was bought for €763.18 after GST was added to it. What was the original price of the CD player? ......................................................................................................................................... ......................................................................................................................................... ........................................................................................................................................ ........................................................................................................................................ 10 General Mathematics (Preliminary Course) | Taxation (FM3) H.S.C. Question (8) ........................................................................................................................................ ........................................................................................................................................ ........................................................................................................................................ H.S.C. Question (9) ........................................................................................................................................ ........................................................................................................................................ ......................................................................................................................................... Activity 11 Ex 4.09 Q 1, 4, 5, 13, 16, 18 General Mathematics (Preliminary Course) | Taxation (FM3) Create and Interpret Graphs to Illustrate and Describe Different Tax Rates Example 10 Use the table of values and axes below to draw a graph showing the GST payable for prices ranging from $0 – $100. Cost of item (GST exclusive) 0 10 20 30 40 50 GST Cost of item (GST exclusive) 60 70 80 90 100 GST 12 General Mathematics (Preliminary Course) | Taxation (FM3) Example 11 Construct a graph showing taxable income versus income tax payable for taxable income values of $0 – $60 000 inclusive. Use the table of values and axes below to draw this graph. Taxable Income 0 6000 20 000 50 000 60 000 Tax Payable 13 General Mathematics (Preliminary Course) | Taxation (FM3) Example 12 ........................................................................................................................................ ........................................................................................................................................ ........................................................................................................................................ 14 General Mathematics (Preliminary Course) | Taxation (FM3) ........................................................................................................................................ ........................................................................................................................................ ........................................................................................................................................ ........................................................................................................................................ ........................................................................................................................................ ........................................................................................................................................ ........................................................................................................................................ ........................................................................................................................................ ........................................................................................................................................ ........................................................................................................................................ ........................................................................................................................................ ........................................................................................................................................ ........................................................................................................................................ ........................................................................................................................................ ........................................................................................................................................ ........................................................................................................................................ ........................................................................................................................................ ........................................................................................................................................ ........................................................................................................................................ ........................................................................................................................................ ........................................................................................................................................ ........................................................................................................................................ Activity 15 Ex 4.10 Q 1, 3, 5, 7 General Mathematics (Preliminary Course) | Taxation (FM3) Literacy 1. Explain the difference between an allowable tax deduction and a deduction. ........................................................................................................................................ ........................................................................................................................................ ........................................................................................................................................ 2. Explain the difference between net income and taxable income. ........................................................................................................................................ ........................................................................................................................................ ........................................................................................................................................ 3. Explain the term PAYE tax. ........................................................................................................................................ ........................................................................................................................................ ........................................................................................................................................ 4. What do the terms ‘GST inclusive’ and ‘GST exclusive’ mean? ........................................................................................................................................ ........................................................................................................................................ ........................................................................................................................................ 5. If you were asked to calculate the Medicare Levy (charged at 1.5% of a taxable income) of a given gross income, explain the steps you would take to do so. ........................................................................................................................................ ........................................................................................................................................ ........................................................................................................................................ ........................................................................................................................................ 16 General Mathematics (Preliminary Course) | Taxation (FM3)
