Maths Standard Year 11 - Module 3 - Lesson 7

Taxable Income and Allowable Deductions

Use this worksheet after reading the lesson to practise the key ideas and prove you can meet the success criteria.

Name

Date

Class

1. Key Ideas

Calculate taxable income by identifying gross income and subtracting only the deductions that are genuinely allowable.

The formula: taxable income = gross income − allowable deductions
Why tax is applied to taxable income, not gross income

2. Success Criteria

By the end, you should be able to:

The formula: taxable income = gross income − allowable deductions
That gross income includes all assessable income (salary, interest, rental income)
Examples of allowable and non-allowable deductions

3. Key Terms

Taxable IncomeGross income minus allowable deductions — the amount on which tax is calculated.

Gross IncomeTotal income from all sources before any deductions.

Allowable DeductionWork-related expenses that can be subtracted from gross income to reduce taxable income.

Tax OffsetA reduction in the amount of tax payable, also called a tax rebate.

Medicare LevyA 2% levy on taxable income to fund the public health system.

4. Activity: Build the Lesson Map

Use the lesson to complete the table. Keep answers brief but specific.

Prompt	Your answer
Main concept
Important example
Common mistake to avoid
How this links to the next lesson

5. Short Answer Questions

1. Explain this lesson goal in your own words: "The formula: taxable income = gross income − allowable deductions". Use one specific example from the lesson.

Band 32 marks

2. Apply this idea to a new example: "That gross income includes all assessable income (salary, interest, rental income)". Show your reasoning clearly.

Band 43 marks

3. Analyse why this idea matters for understanding Taxable Income and Allowable Deductions: "Examples of allowable and non-allowable deductions".

Band 54 marks

6. Extend: Apply the Idea

Band 5/65 marks

A student gives a memorised answer about Taxable Income and Allowable Deductions but does not use evidence or reasoning.

Improve the answer by writing a stronger response that uses accurate terminology, a relevant example and a clear explanation.

7. Multiple Choice

1. What is the best first step when answering a question about Taxable Income and Allowable Deductions?

A. Identify the key concept being tested

B. Write every fact from memory

C. Ignore the command word

D. Skip examples and evidence

2. Which answer would show stronger understanding of Taxable Income and Allowable Deductions?

A. An answer with accurate terms and reasoning

B. A copied definition only

C. A single-word response

D. An answer with no example

3. What should you do if a question asks you to explain?

A. Link the idea to a reason or cause

B. List unrelated facts

C. Only draw a diagram

D. Write the shortest possible answer

8. Success Criteria Proof

Finish with evidence that you can do each success criterion.

Success criterion 1

Prove that you can: The formula: taxable income = gross income − allowable deductions