QUESTION 1

1. Terri is visiting Australia from Canada a working holiday visa and earns $18,000 picking oranges in 2019/20. How much tax does Terri need to pay:

   		$ 0
   		$ 5,850
   		$ 6,210
   		$ 2,700
   		None of the above.

   QUESTION 2

2. Which of the following statements is not correct?

   		Statutory income is exempt only if it is made exempt by the Income Tax Assessment Act.
   		A taxpayer may be exempt from income tax on all of their transactions.
   		Income that is assessable under a provision cannot be exempt.
   		An amount of ordinary income is exempt if it is made exempt by a provision of the Income Tax Assessment Act.
   		None of the above.

   QUESTION 3

3. When a taxpayer ceases to be a resident for tax purposes in an income year, their tax free threshold for that year is:

   		Not changed but reduced to zero for the next income year.
   		Reduced to zero.
   		Reduced to a flat amount of $13,464.
   		Adjusted by adding to a flat base amount an additional amount for the months they remained a resident.

   QUESTION 4

4. The tax-free threshold for a foreign resident for all of 2019/20 is:

   		$0
   		$18,200
   		$37,000
   		$90,000
   		None of the above.

   QUESTION 5

5. Jim received a lump sum compensation for loss of earnings due to an accident. The sum received will be:

   		Assessable income.
   		Taxable income.
   		Capital gains.
   		Exempt income.
   		non-assessable non- exempt income.

   QUESTION 6

6. Income tax payable on taxable income of $42,000 in 2019/20 is:

   		$4,522
   		$5,197
   		$1,625
   		$13,650
   		None of the above.

   QUESTION 7

7. Which of the following calculations of taxable income is correct?

   		Assessable Income - Deductions = Taxable Income.
   		Assessable Income + Deductions = Taxable Income.
   		Assessable Income + Exempt Income - Deductions = Taxable Income.
   		Assessable Income - Exempt Income - Deductions = Taxable Income.
   		None of the above.

   QUESTION 8

8. Calculation of taxable Income does not include:

   		Medicare Levy Surcharge.
   		Statutory income.
   		Deductions.
   		Ordinary income.
   		All of the above are included in taxable income.

   QUESTION 9

9. Which of the following is correct?

   		Assessable Income = Ordinary Income - Statutory Income.
   		Assessable Income = Ordinary Income Deductions.
   		Assessable Income = Ordinary Income - Exempt Income.
   		Assessable Income = Ordinary Income + Statutory Income Exempt Income.
   		None of the above.

   QUESTION 10

10. Calculation of taxable income does not include:

    		Deductions.
    		Ordinary Income.
    		Exempt Income.
    		Statutory Income.
    		All of the above are included in taxable income.