Tax Payable

 

Taxable Income	Tax on taxable income
$0-$18200	Nil
$18201-$37000	19c for each $1 over $18200
$37001-$80000	$3572 plus 32c for each $1 over $37000

Use the tax table above to calculate the tax payable on taxable income of $72000.

Locate the row where the taxable income amount occurs

In this case 72000 occurs in the third row

Find the initial tax payable

From the table, the initial tax payable is 3572

Find the tax on excess income

Excess income is 72000 - 37000 = 35000
Tax on excess income is excess income * tax rate \[ \begin{align} \text{Tax on excess income} &= 35000 * 0.32 \\ &= 11200.00 \end{align}\ \]

Find the total tax payable

Total tax payable is initial tax payable plus tax on excess income \[ \begin{align} \text{Total tax payable} &= 3572 + 11200.00 \\ &= 14772.00 \end{align}\ \]

Important This is not a 'textbook on a screen' - this is an interactive learning system. Which means you have to 'act' to make it go.

Look through the options below and select the one you think is the best response. You will gain most benefit if you work the problem with pen and paper as you go, i.e. decide what you think is the correct option and write down what you think the result will be before you click. If the next step doesn't display, click another option.

 

What is first step when using a tax table?

==>>

Now You Try:

 

Find the tax rate
Locate the column where the taxable income amount occurs
Locate the row where the taxable income amount occurs