Year 9: Financial mathematics - Income and tax

What is Income?

Income is the money you earn. It can come from:

• Part-time jobs: Wages or hourly rates.
• Pocket money: Regular payments from parents.
• Gifts: Money given as presents.
• Interest earned: Money earned from savings accounts.

Calculating Income

Simple Calculation: Total income = Wages + Pocket Money + Interest Earned.

Example: You earn $50 in wages and $20 in pocket money. Your total income is $70.

Understanding Tax

Tax is money the government takes from your income. It's used to fund public services like schools, hospitals, and roads.

Tax Rates: Australia uses a progressive tax system. This means the more you earn, the higher the tax rate.

Example: - Income under $18,200: 0% tax - Income between $18,200 and $45,000: 19% tax

Calculating Tax

Tax Calculation: Tax = Income x Tax Rate.

Example: If you earn $30,000 and the tax rate is 19%, your tax is $5,700.

Net Income

Net Income = Total Income - Tax Paid. This is the money you actually take home.

Disclaimer: This is a simplified guide. Always consult with a financial advisor for personalized advice.