1. INCOME TAX
When you are paid a salary, an amount will be deducted and sent to the government to pay for facilities. This is called income tax, and the amount you pay depends on how much you earn.This amount is not a set percentage, but increases as the amount you earn increases, according to a classification of tax subdivisions.
Example:John’s gross salary is $ per year.
a How much does he pay in income tax?
b If he is given a raise of $5000 per year, how much of this will he actually receive?
Solution:
Tax on first $6000 = 0
Tax on $6001 − $ =( ) × 17 = × 17 = $2652
Tax on $ − $ = ( ) × 30 = × 30 = $7239
Total tax = = $ 9891

2. b.If John will get $5000 pay rise the he will still be on the same classification
He will receive: 5000 × 70 = $ 3500
100
Capital gains tax
Capital gains tax (CGT) is the tax paid on any profit you make from an investment. In that
sense, it is a component of your income tax. The profit made from an investment is called a capital gain.
Example:Daisy buys shares for $ in October and sells them for $ in March of the next year. If her salary for that financial year is $82 390, how much capital gains tax will she pay on the profit she makes on the shares?
Solution: Profit = Sale price - Purchase ptice = − = $28 000
Capital gains tax = × 42 = $11 760
100
Goods and services tax
The goods and services tax (GST) is a tax of 10% which is added to the price of most goods
(including cars) and services (such as insurance).

3. Example: a If the cost of electricity supplied in one quarter is $288
Example: a If the cost of electricity supplied in one quarter is $288.50, how much GST will be added to the bill?
b If the selling price of a washing machine is $990, how much of this is GST?
Solution: a GST = × 10/100 = $28.85
b New price with GST =990
Original price = ?
We use the formula: New price = original price × percentage increase
990 = original price × 110/100
original price = 990 × 100 = $900
110
GST = = $90
Stamp duty
Stamp duty is a term commonly used to describe the duty or tax charged by the government on
various commercial transactions. This includes the purchase of land, houses, motor vehicles,
life insurance and livestock. Currently stamp duty on property is payable according to the
table.

4. Example:Brett buys a house for $480 000
Example:Brett buys a house for $ What is the value of the stamp duty payable on this purchase?
Solution: Excess = = $
Stamp duty = × 6/100 = $24 460