Tax
What is tax?
A percentage of your income taken by the government to fund various services.
What is the percentage rate of GST in Australia?
10%
What is simple interest?
Interest which is calculated each year based off of the principal.
What is compound interest?
interest which is calculated each period based on the principal AND whatever interest has been accrued so far.
What is the standard percentage rate for the Medicare Levy applied to taxable income in Australia?
2%
What are deductions?
Deductions are costs or expenditures which do not contribute towards your taxable income.
If an item costs $100 before GST, what is the total price including GST?
$110
What is the formula for simple interest?
I = Prt
or
I = Prn
What is the formula for compound interest?
A = P(1+r/m)nm
Will also accept: A = P(1+r)n
True or False: The Medicare Levy applies to every Australian irrespective of income.
Fals
How do you determine your taxable income?
You subtract all deductions from your overall income.
A business sells a product for $220, including GST. What is the amount of GST included in the price?
$20
What type of growth does simple interest result in?
Linear growth
What type of growth does compound interest result in?
Exponential growth
Calculate the Medicare Levy for an individual with a taxable income of $50,000.
$1000
If someone earns $97,000 total income and their deductions total to $11,000, which tax bracket are they in?
The 3rd, $45,001 - $135,000
An invoice shows the amount payable as $330 including GST. What was the price before GST was added?
$30
What interest is earned on a principal of $4000, with a rate of 3% over 5 years.
$600
$3947.80
If someone pays $940 as a Medicare Levy, what is approximately their taxable income?
$47,000
Calculate the tax owed by an individual who has a taxable income of $47,500 dollars.
5038
A store sold 40 items at $55 each, including GST. What is the total GST collected from all items sold?
$200
What interest rate was applied to a principal of $7000 to earn an interest of $300 after 2 years?
2.14%
What is the total amount of money owed on a loan with a principal of $6000 and a rate of 8%, compounded monthly, and paid off over 4 years?
$8254
A couple has a combined taxable income of $160,000. If the Medicare Levy is charged at 2%, what is the total amount they must pay?
$3,200