Maths Standard Year 11 - Module 3 Financial Mathematics - Lessons 6 to 10
Deductions and net paySuperannuationTaxable incomeIncome tax from supplied rulesGST, budgets and household expenses
10 MC3 short answer25 min
0/10
Multiple Choice Score
Answer questions to see your score.
Part A - Multiple Choice
1A worker has gross pay of $1460. Deductions are PAYG tax $286.40, union fees $12.50 and health insurance $18.10. What is the net pay?
$317.00
$1 143.00
$1 155.60
$1 777.00
B. Total deductions $=286.40+12.50+18.10=317.00$. Net pay $=1460-317=1143.00$.
2An employer contributes superannuation at 11.5% of ordinary time earnings of $1280. What is the super contribution?
$11.50
$128.00
$147.20
$1 427.20
C. Super contribution $=0.115 \times 1280 = 147.20$.
3Which statement about employer superannuation is generally correct in a payslip question?
It is usually added to the worker's take-home pay.
It is usually an employer contribution to a super fund, separate from net pay.
It is always subtracted from gross pay as PAYG tax.
It is the same as a GST payment.
B. Employer super is paid to the super fund. It is not normally part of the worker's immediate take-home pay.
4Gross annual income is $72 400 and allowable deductions are $2850. What is taxable income?
$69 550
$72 400
$75 250
$2 850
A. Taxable income $=72400-2850=69550$.
5Which item is most likely to be treated as an allowable deduction in a simple school tax question?
A private holiday
New clothes for a party
Work-related tools required for the job
Weekly groceries
C. In these questions, allowable deductions are usually expenses directly connected to earning income.
6A supplied tax rule says: tax payable $= \$5092 + 0.325 \times$ the amount over $45 000. What is the tax payable on taxable income of $58 000?
$4 225
$9 317
$18 850
$23 942
B. Amount over $45 000 is $13 000$. Tax $=5092+0.325(13000)=5092+4225=9317$.
7Tax liability is $14 820 and PAYG withheld is $15 300. What is the final tax outcome?
Tax debt of $480
Tax refund of $480
Tax refund of $14 820
No refund or debt
B. PAYG withheld is greater than the liability, so the difference is a refund: $15300-14820=480$.
8A service costs $340 before GST. What is the GST-inclusive price?
$34.00
$306.00
$374.00
$3 740.00
C. Add 10% GST by multiplying by $1.10$: $340 \times 1.10 = 374$.
9A price of $242 includes GST. What is the GST component?
$22.00
$24.20
$220.00
$266.20
A. GST component from a GST-inclusive price is found by dividing by 11: $242 \div 11 = 22$.
10A monthly income is $5200 and monthly expenses are $4865. Which statement is correct?
There is a deficit of $335.
There is a surplus of $335.
There is a surplus of $4865.
The budget is balanced.
B. Surplus/deficit $= income - expenses = 5200 - 4865 = 335$. Positive means surplus.
Part B - Short Answer
1A worker earns gross weekly pay of $1680. Deductions are PAYG tax $322.00, union fees $18.00 and salary sacrifice super $60.00. Employer super is 11.5% of ordinary earnings.
a. Calculate total deductions from pay. 1 mark
b. Calculate net pay. 2 marks
c. Calculate the employer super contribution and explain why it is not added to net pay. 2 marks
Total deductions $=322+18+60=400$. Net pay $=1680-400=1280$. Employer super $=0.115 \times 1680 = 193.20$. Employer super is paid to the worker's super fund, not received as take-home pay.
2A taxpayer has salary income of $81 500, bank interest of $420 and allowable deductions of $2640. A supplied tax rule says tax payable $= \$5092 + 0.325 \times$ the amount over $45 000.
a. Calculate gross income. 1 mark
b. Calculate taxable income. 2 marks
c. Calculate tax payable using the supplied rule. 3 marks
Gross income $=81500+420=81920$. Taxable income $=81920-2640=79280$. Amount over $45000 is $34280$. Tax payable $=5092+0.325(34280)=5092+11141=16233$.
3A household has monthly net income of $6400. Monthly expenses are rent $2300, groceries $860, utilities $242 including GST, transport $510, insurance $190 and other expenses $720.
a. Calculate total monthly expenses. 2 marks
b. Find the monthly surplus or deficit. 2 marks
c. Find the GST component of the utilities bill. 1 mark
Total expenses $=2300+860+242+510+190+720=4822$. Surplus $=6400-4822=1578$, so the household has a monthly surplus of $1578. GST component of utilities $=242 \div 11 = 22$.
Use this checkpoint to decide whether Lessons 6-10 are secure before moving into interest and depreciation.