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TABL2751 Sample Calculation Questions For Quiz 1

The document provides two sample multiple choice questions regarding tax calculations for Australian residents. Question 1 asks to calculate the total tax liability for a person with an income of $127,000, deductions of $9,000, and a HELP debt of $7,800. The answer is $38,737. Question 2 asks to calculate the total tax liability for a person with an income of $43,000, deductions of $1,600, and a HELP debt of $16,500. The answer is $4,146.

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287 views2 pages

TABL2751 Sample Calculation Questions For Quiz 1

The document provides two sample multiple choice questions regarding tax calculations for Australian residents. Question 1 asks to calculate the total tax liability for a person with an income of $127,000, deductions of $9,000, and a HELP debt of $7,800. The answer is $38,737. Question 2 asks to calculate the total tax liability for a person with an income of $43,000, deductions of $1,600, and a HELP debt of $16,500. The answer is $4,146.

Uploaded by

Peper12345
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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TABL2751 T2, 2021

Sample calculation questions for Quiz 1 (multiple choice)

Question 1
Ana is an Australian resident for tax purposes. The following information relates to the year
ended 30 June 2021:

 She has assessable income of $127,000.


 She has $9,000 of allowable deductions.
 She has private patient hospital cover.
 She has a HELP debt of $7,800.

What will be her total tax liability to the ATO for the year ended 30 June 2021?
(a) $38,737

(b) $38,977

(c) $40,212

(d) $40,967

Question 2
Mitch is an Australian resident for tax purposes. The following information relates to the year
ended 30 June 2021:

 He has assessable income of $43,000.


 He has allowable deductions of $1,600.
 He does not have private health cover.
 He has a HELP debt of $16,500.

What will be his total tax liability to the ATO for the year ended 30 June 2021?
(a) $3,732

(b) $4,146

(c) $4,731

(d) $5,827
Calculation Question 1 Answer
(a) 38,737

This is calculated as follows:

 Taxable income = $127,000 - $9,000 = $118,000


 Tax: $5,092 + [($118,000 - $45,000) x 32.5%] = $28,817
 Medicare Levy: $118,000 x 2% = $2,360
 Medicare Levy Surcharge: Nil (She has private health (hospital) insurance)
 Low Income Tax Offset: Nil (Her taxable income is over $66,667.
 Low and Middle Income Tax Offset: $1,080 – ([$118,000 - $90,000) x 3%] = $240
 HELP Repayment: $7,800 (Note that her repayment rate is 8.5%. Based on her taxable
income, her repayment equals $10,030. However, remember, the maximum amount of
the HELP repayment is the amount owed. Therefore, her HELP repayment is capped at
$7,800).

Total tax liability: $28,817 + $2,360 - $240 + $7,800 = $38,737.

Calculation Question 2 Answer


(b) $4,146

This is calculated as follows:

 Taxable income = $43,000 - $1,600 = $41,400


 Tax: ($41,400 - $18,200) x 19% = $4,408
 Medicare Levy: $41,400 x 2% = $828
 Medicare Levy Surcharge: Nil (He doesn’t have private health cover, but his income is
below the $90,000 threshold for the Medicare Levy Surcharge).
 Low Income Tax Offset: $700 – ([$41,400 - $37,500] x 5%) = $505
 Low and Middle Income Tax Offset: $255 + ([41,400 - $37,000] x 7.5%) = $585
 HELP Repayment: NIL (His taxable income is below the HELP repayment threshold).

Total tax liability: $4,408 + $828 - $505 - $585 = $4,146

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