Income tax and net pay
Calculate gross annual income from weekly, fortnightly or monthly wages, find income tax payable using a tax bracket table, and determine net annual income and net weekly pay after deductions.
Worked examples
Finding gross annual income from a weekly wage
Straightforward
Problem
Priya earns per week. Calculate her gross annual income.
1
Identify the number of weeks in a year.
There are weeks in a year.
2
Multiply the weekly wage by .
Answer
Calculating income tax from a bracket table
Moderate
Problem
Ben has a taxable income of per year. Using the tax table below, calculate his annual income tax.
| Taxable income | Tax payable |
|---|---|
| Nil | |
| c for each over | |
| plus c for each over |
1
Identify which bracket the income falls in.
is between and , so use the third row of the table.
2
Find the amount of income above .
3
Apply the bracket formula: base tax plus c per dollar above .
Answer
Finding net weekly pay after tax and deductions
Challenging
Problem
Natalie earns per fortnight. She has in allowable deductions. Using the tax table below, find her net weekly pay after income tax and deductions.
| Taxable income | Tax payable |
|---|---|
| Nil | |
| c for each over | |
| plus c for each over |
1
Calculate gross annual income from the fortnightly wage.
2
Identify the correct tax bracket and calculate income tax.
falls in the – bracket.
Amount over
Amount over
3
Subtract income tax and deductions to find net annual income.
4
Divide by to find net weekly pay.
Answer
Practise
Q1·Straightforward
Priya earns per week. Calculate her gross annual income.
Explanation
Q2·Straightforward
Liam earns per fortnight. Calculate his gross annual income.
Explanation
Q3·Straightforward
Mei earns per week. Calculate her gross annual income.
Explanation
Q4·Straightforward
Daniel earns per fortnight. Calculate his gross annual income.
Explanation
Q5·Moderate
James has a taxable income of per year. Using the tax table below, calculate his annual income tax.
| Taxable income | Tax payable |
|---|---|
| Nil | |
| c for each over |
Explanation
The income of falls in the – bracket.
Amount over
Amount over
Q6·Moderate
Sarah has a taxable income of per year. Using the tax table below, calculate her annual income tax.
| Taxable income | Tax payable |
|---|---|
| Nil | |
| c for each over | |
| plus c for each over |
Explanation
The income of falls in the – bracket.
Amount over
Amount over
Q7·Moderate
Chen has a taxable income of per year. Using the tax table below, calculate his annual income tax.
| Taxable income | Tax payable |
|---|---|
| Nil | |
| c for each over |
Explanation
The income of falls in the – bracket.
Amount over
Amount over
Q8·Moderate
Aisha has a taxable income of per year. Using the tax table below, calculate her annual income tax.
| Taxable income | Tax payable |
|---|---|
| Nil | |
| c for each over | |
| plus c for each over |
Explanation
The income of falls in the – bracket.
Amount over
Amount over
Q9·Challenging
Madison earns per week. She has in allowable deductions. Using the tax table below, calculate her net weekly pay after income tax and deductions. Give your answer to the nearest cent.
| Taxable income | Tax payable |
|---|---|
| Nil | |
| c for each over |
Explanation
Gross annual income
The income falls in the – bracket.
Net annual income
The income falls in the – bracket.
Net annual income
Q10·Challenging
Tom earns per week. He has in allowable deductions. Using the tax table below, calculate his net weekly pay after income tax and deductions.
| Taxable income | Tax payable |
|---|---|
| Nil | |
| c for each over | |
| plus c for each over |
Explanation
Gross annual income
The income falls in the – bracket.
Net annual income
The income falls in the – bracket.
Net annual income
Q11·Challenging
Grace earns per fortnight. She has in allowable deductions. Using the tax table below, calculate her net weekly pay after income tax and deductions. Give your answer to the nearest cent.
| Taxable income | Tax payable |
|---|---|
| Nil | |
| c for each over | |
| plus c for each over |
Explanation
Gross annual income
The income falls in the – bracket.
Net annual income
The income falls in the – bracket.
Net annual income
Q12·Challenging
Marcus earns per fortnight. He has in allowable deductions for work-related expenses and union fees. Using the tax table below, calculate his net weekly pay after income tax and deductions. Give your answer to the nearest cent.
| Taxable income | Tax payable |
|---|---|
| Nil | |
| c for each over | |
| plus c for each over |
Explanation
Gross annual income
The income falls in the – bracket.
Net annual income
The income falls in the – bracket.
Net annual income
Open Math
Income tax and net pay
Number · MA5-FIN-C-01
Name:
Date:
Q1Straightforward
Priya earns per week. Calculate her gross annual income.
Q2Straightforward
Liam earns per fortnight. Calculate his gross annual income.
Q3Straightforward
Mei earns per week. Calculate her gross annual income.
Q4Straightforward
Daniel earns per fortnight. Calculate his gross annual income.
Q5Moderate
James has a taxable income of per year. Using the tax table below, calculate his annual income tax.
| Taxable income | Tax payable |
|---|---|
| Nil | |
| c for each over |
Q6Moderate
Sarah has a taxable income of per year. Using the tax table below, calculate her annual income tax.
| Taxable income | Tax payable |
|---|---|
| Nil | |
| c for each over | |
| plus c for each over |
Q7Moderate
Chen has a taxable income of per year. Using the tax table below, calculate his annual income tax.
| Taxable income | Tax payable |
|---|---|
| Nil | |
| c for each over |
Q8Moderate
Aisha has a taxable income of per year. Using the tax table below, calculate her annual income tax.
| Taxable income | Tax payable |
|---|---|
| Nil | |
| c for each over | |
| plus c for each over |
Q9Challenging
Madison earns per week. She has in allowable deductions. Using the tax table below, calculate her net weekly pay after income tax and deductions. Give your answer to the nearest cent.
| Taxable income | Tax payable |
|---|---|
| Nil | |
| c for each over |
Q10Challenging
Tom earns per week. He has in allowable deductions. Using the tax table below, calculate his net weekly pay after income tax and deductions.
| Taxable income | Tax payable |
|---|---|
| Nil | |
| c for each over | |
| plus c for each over |
Q11Challenging
Grace earns per fortnight. She has in allowable deductions. Using the tax table below, calculate her net weekly pay after income tax and deductions. Give your answer to the nearest cent.
| Taxable income | Tax payable |
|---|---|
| Nil | |
| c for each over | |
| plus c for each over |
Q12Challenging
Marcus earns per fortnight. He has in allowable deductions for work-related expenses and union fees. Using the tax table below, calculate his net weekly pay after income tax and deductions. Give your answer to the nearest cent.
| Taxable income | Tax payable |
|---|---|
| Nil | |
| c for each over | |
| plus c for each over |
Worked solutions and answers at openmath.au/year-10/earning-money/income-tax-and-net-pay