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    Find The Amount Given That

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    GeorgeAru
    1. The Medicare levy is a payment made as part of our tax that pays for basic health care services. 2. The Medicare levy is 1.5% of taxable income, with allowances for people on low incomes. 3. Private health insurance provides a 30% rebate and exempts people from the 1% Medicare levy surcharge for those over the income threshold.

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    Find The Amount Given That

    Uploaded by

    GeorgeAru
    57 views8 pages
    1. The Medicare levy is a payment made as part of our tax that pays for basic health care services. 2. The Medicare levy is 1.5% of taxable income, with allowances for people on low incomes. 3. Private health insurance provides a 30% rebate and exempts people from the 1% Medicare levy surcharge for those over the income threshold.

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    Tax

    Original Title

    Taxation

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    1. The Medicare levy is a payment made as part of our tax that pays for basic health care services. 2. The Medicare levy is 1.5% of taxable income, with allowances for people on low incomes. 3. Private health insurance provides a 30% rebate and exempts people from the 1% Medicare levy surcharge for those over the income threshold.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    57 views8 pages

    Find The Amount Given That

    Uploaded by

    GeorgeAru
    1. The Medicare levy is a payment made as part of our tax that pays for basic health care services. 2. The Medicare levy is 1.5% of taxable income, with allowances for people on low incomes. 3. Private health insurance provides a 30% rebate and exempts people from the 1% Medicare levy surcharge for those over the income threshold.

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    © All Rights Reserved
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    Finding a percentage of a quantity

    Find: 42% of $4900 (0.42*4900 =2058)


    48% of $52 000

    1.5% of $67 500


    Increase or decrease by a percentage
    Increase $450 by 10% ( 450 + 0.1*450 = 495 )
    Increase $750 by 15%

    Decrease $600 by 12%


    Decrease $945 by 25%
    Writing one quantity as a percentage of another
    $45 as a percentage of $180 ( 45/180 = 0.25 = 25% )
    $52.50 as a percentage of $420
    $135 as a percentage of $90
    $48 as a percentage of $750
    Unitary method of percentages
    Find the amount given that

    a) 10% of the amount is $7.50 ( 10/100. x= 7.50 , so x = 7.50*10 = 75 )


    b) 40% of the amount is $560

    c) 110% of the amount is $275.


    Sketching straight lines

    Draw the graph of:


    y = 2x + 1
    y = 4x 2
    y = 5 x.

    1. A tax deduction is an amount of money deducted from gross income


    before tax is calculated.

    2. Tax deductions are allowed for work-related expenses as well as other


    expenses such as charity donations.
    3. A tax deduction can be claimed on:

    (a) The cost of expenses incurred while earning an income


    (b) Travel that is part of your job
    (c) Depreciation of equipment used in performing your job
    (d) Expenses associated with maintaining the premises used for your work
    (e) Miscellaneous other costs.
    Q.1 A large company employs Ken as a plumber. Ken claims deductions of
    $1400 to buy tools,$25 for gumboots, $200 for two pairs of work overalls, $5
    per week for dry-cleaning the
    overalls and $1.50 per week for work-related telephone calls. Calculate Kens
    total deductions.
    Q.2 Raylene is a computer programmer. As part of her job she uses her own
    car to travel to

    visit clients and to attend training seminars. Raylenes car is a 2.4 litre
    Mitsubishi Lancer,
    for which she is allowed a deduction of 51.9 c/km. Calculate the size of the tax
    deduction
    in a year where she travels 2547 km on work-related matters
    Q.3 Trevor is an accountant who works from home. He owns a personal
    computer that is used as part of his job. Trevor bought a new computer on 1
    July 2007 for $3200. Each year he
    is allowed a 33% deduction for the depreciation of the computer. Calculate the
    tax
    deduction allowed in:
    a the 200708 financial year
    b the 200809 financial year.
    Q.4 Wendy runs a confectionery shop in a shopping centre. She pays rent of
    $400 per week, has an electricity bill of $326 per quarter and a telephone bill
    of $276 per month. Calculate the deduction that Wendy is entitled to.

    1. Taxable income is the income on which your tax is calculated.


    2. To calculate taxable income, add income from all sources and subtract
    all tax deductions.

    Q.5 Fernando earns a gross salary of $45 900 per year. His tax deductions
    total $2145.75.
    Calculate Fernandos taxable income.
    Q.6 Michael is a carpet layer who earned a gross pay of $34 500 during the
    200708 financial
    year. Michael also earned $278.50 for working as a polling officer during a
    State election and received $148.63 in interest from his bank accounts.
    Michaels total tax deductions for the year were $1846.30. Calculate Michaels
    taxable income.
    Q.7 Waynes gross fortnightly pay is $1156.60. He has tax deductions of $5
    per week for dry-cleaning his work uniform, $50 per month in work-related
    travel expenses and $348 per year in union dues. Waynes taxable income is:
    .
    a) $28 863.60 b) $29 653 c) $29 668.60 d) $60 143.20

    Q. Murray works as a full-time jackeroo and plays two evenings per week in a
    band. Murray earns $471.52 per week from his full-time job and $118.53 per
    week from playing in the band. During the year Murray also earned $87.52 in
    interest from his bank accounts.

    a Calculate Murrays total gross income.


    b It is 15 km from the property where Murray works to the club where he
    plays. When someone has two jobs, the cost of travel between jobs is tax
    deductable. If Murray is allowed a tax deduction of 45.7 c/km for travel,
    calculate the travel deduction that he is
    entitled to claim.
    c If Murray has other tax deductions of $948.50, calculate his taxable income.

    Calculating taxable income Using Excel Spreadsheet

    Medicare levy
    Medicare is Australias national health care scheme. As part of our tax, we
    pay the Medicare levy. In return for this, Medicare pays for basic health

    care services, such as visits to your local doctor, x-rays and pathology. The
    basic Medicare levy is 1.5% of taxable income. This is the rate that the
    majority of people pay. People who are on low incomes do not pay any
    Medicare levy or pay the levy at a reduced rate.
    Q.1 Calculate the Medicare levy for a person with an annual taxable income of
    $44 300.

    In Australia the government encourages people to take out private health insurance
    in addition to Medicare. This is to take the pressure off the public health system.
    They encourage people to do this in two ways.
    1. The government provides a 30% rebate (refund) on the cost of the private
    health insurance.
    2. People on higher incomes who do not have private health insurance are
    charged the Medicare levy surcharge. This surcharge is a further 1% of taxable
    income.

    The income threshold upon which families are charged the Medicare levy surcharge
    is shown by the table below.

    Q.2 Calculate the total Medicare levy (including surcharge) paid by a person
    who has two children, no private health insurance and a taxable income of
    $164 000 per annum.

    1. The Medicare

    levy is a payment

    made as part of

    our tax that pays for

    basic

    care services.

    health

    2. The Medicare levy is 1.5% of taxable income.

    3. Allowances are made for people on low incomes who do not have to pay
    the levy or pay it at a reduced rate.

    CALCULATING TAX

    From the table we can see that there are five tax brackets.
    Bracket 1. People who earn less than $6000 per year pay no tax.
    Bracket 2. People who earn between $6001 and $30 000 pay 15c for every dollar
    over $6000.
    Bracket 3. People who earn between $30 001 and $80 000 pay $3600 plus 30c for
    every dollar over $30 000.

    Bracket 4. People who earn between $80 001 and $180 000 pay $18 600 plus 40c for
    every dollar over $80 000.
    Bracket 5. People who earn over $180 000 pay $58 600 plus 45c for every dollar
    over $180 000.
    Q.1 Calculate the annual tax payable on a taxable income of $36 600.
    Q.2 Trevor earns a gross wage of $772.70 per week. Calculate the amount of
    PAYE (weekly basis) tax that is deducted by his employer. [ 1 year 52
    weeks ]

    Q.3 Christian has a taxable income of $85 000 per year.


    a Calculate the income tax that Christian must pay.
    b Calculate the Medicare levy for Christian if he is in
    a private health fund.
    c Calculate Christians total tax for the year.

    Calculating GST and VAT


    When you purchase most items you must pay the GST on that item. GST stands for
    Goods and Services Tax. The GST is a tax amounting to 10% of the purchase price
    of that item.
    Q.1 A cricket bat has a pre-GST price of $127.50. Calculate the GST payable on
    the purchase
    of the bat.
    Q.2 The Besenko family goes to McDonalds for lunch. The cost of the meal
    before GST is
    $19.80. How much will the Besenkos have to pay for the meal, including the
    GST?
    Q.3 Calculate the pre-tax price of a car that costs $31 350, including GST.
    Q.4 New Zealand has a VAT levied at a rate of 12.5%. Vanessa goes on
    holidays to New Zealand and rents a car for five days at a rate of NZ$56.50
    per day (before VAT). Calculate the total cost of renting the car including the
    VAT.

    Graphing tax functions


    We can draw linear graphs to display the tax payable. This is possible for both the
    GST and income tax.

    Draw a set of axes with the price on


    the horizontal axis and GST on the
    vertical axis, as shown.
    a Calculate the GST payable on
    items that cost:
    i) $100 ii) $200 iii) $500.
    b Join these points with a straight
    line to show the GST function.

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