Question

Michael is an electrician who received a salary of $97540 during the 2017-2018 financial year. Michael’s total allowable deductions for work expenses totalled $2595 Use the tax table (2017-2018 tax table on the internet) calculate Michael’s tax payable.
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Answer 1

Answer:

$21,651.65

Step-by-step explanation:  

Michael received 97,540

Deductions is 2595  

So Michael will pay tax on the amount:

97540 - 2595 = $94,945  

According to 2017 - 2018 tax table, we need to look at the bracket in which $94,945 falls on.

The rule is:  

$87,001 - $180,000  ---  $19,822 plus 37c for each $1 over $90,000  

$19,822 already have to pay

and $0.37 for every dollar OVER 90,000  

Hence, 94,945 - 90,000 = 4945 (have to pay 0.37 per $1)  So, the amount is:

0.37 * 4945 = $1829.65  

So, total tax amount payable is:

$1829.65 + $19,822 = $21,651.65