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TAXATION

TAXATION. What is tax? Who gets taxed? Where does the tax money go?. TAXATION. What is tax? Who gets taxed? Where does the tax money go? Types of tax? Income Tax (you & me) Medicare levy tax. Goods and Services Tax. TAXATION. Individual Tax rates (2013 – 2014).

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TAXATION

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  1. TAXATION • What is tax? • Who gets taxed? • Where does the tax money go?

  2. TAXATION • What is tax? • Who gets taxed? • Where does the tax money go? • Types of tax? Income Tax (you & me) Medicare levy tax. Goods and Services Tax

  3. TAXATION • Individual Tax rates (2013 – 2014)

  4. TAXATION • Example of calculating income tax. Someone earns $75,000 0 - $18,200 $0 $18,200 – 37,000 $3,572 = (37000-18200) x 19% $37,000 – 80,000 $12,350=(75000-37000)x 32.5% Total Tax on $75,000 income $15,922

  5. TAXATION • Income Tax Return • Accountant • Income Earned: $115,000 • Less • Expenses (cost incurred in producing income) • Car expenses $1000 • Memberships $630 • Stationary $150 • Laundry $150 • Education $530 • Accomodation $1200 • TOTAL EXPENSES$3,660 • TOTAL NET INCOME111,340

  6. TAXATION • Income Tax Return • TOTAL NET INCOME111,340 Tax (0 – 18,300) x 0% 0 (18,300 – 37,000) x 19% 3,572 (37,000 – 80,000) x 32.5% 13,974 (80,000 – 111,340) x 37% 11,595 TOTAL TAX PAYABLE $29,141 TOTAL NET TAKE HOME PAY $82,169

  7. TAXATION Superannuation Superannuation in Australia refers to the arrangements which people make in Australia to have funds available for them in retirement. Superannuation is a requirement for all employers to pay on behalf of workers in Australia with a minimum of 9.25% of an employees salary being contributed into a chosen superannuation fund. An employee must earn a minimum of $450 per month for an employer to contribute superannuation on their behalf. Superannuation can not be accessed by an employee until they are 55 yrs old with restrictions or 65yr old without restrictions (currently)

  8. TAXATION Activity 1. You are 3rd year apprentice Your current situation: • You get $550 per week Gross pay • Your expenses incurred are $7 per week to produce income • Calculate • Your yearly salary • Your yearly expenses • Your yearly tax payable • Your yearly take home pay

  9. TAXATION Activity 2 • You are a elite sports person • Your current situation: • You get $4500 per week Gross pay • Your expenses incurred for the year are $ 10,400 to produce your income • List what type of expenses a sports person may incurr in producing their income. • Calculate • Your yearly salary • Your yearly expenses • Your yearly tax payable • Your yearly take home pay

  10. TAXATION Activity 3 • Think about your desired career job. • Research: • How will you find this job (what will you do to beat others wanting the same job) • Are there many of your chosen jobs out there • How much does it earn (as a junior and when fully qualified) • What expenses might you incur • How much superannuation will you receive in a year • How much will you earn over a life time? • How much superannuation will you have when you retire?

  11. TAXATION What are some questions you have about money and finances? How much will I earn? Cars? Moving out of home (renting/buying) Saving / investing (making your money work for you) Taxes? Running your own business? Travelling?

  12. TAXATION Things to think about when you begin to earn money? • How much will I earn? • How much tax will I pay? • How much will my expenses be? What are they? • How much will I have left over to spend on me? • How much should I save? • How much will my car cost? • How much will it cost me to move out?

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