QUESTION 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:

1. $ 0
2. $ 5,850
3. $ 6,210
4. $ 2,700
5. None of the above.

QUESTION 2

Which of the following statements is not correct?

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

QUESTION 3

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

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

QUESTION 4

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

1. $0
2. $18,200
3. $37,000
4. $90,000
5. None of the above.

QUESTION 5

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

1. Assessable income.
2. Taxable income.
3. Capital gains.
4. Exempt income.
5. non-assessable non- exempt income.

QUESTION 6

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

1. $4,522
2. $5,197
3. $1,625
4. $13,650
5. None of the above.

QUESTION 7

Which of the following calculations of taxable income is correct?

1. Assessable Income - Deductions = Taxable Income.
2. Assessable Income + Deductions = Taxable Income.
3. Assessable Income + Exempt Income - Deductions = Taxable Income.
4. Assessable Income - Exempt Income - Deductions = Taxable Income.
5. None of the above.

QUESTION 8

Calculation of taxable Income does not include:

1. Medicare Levy Surcharge.
2. Statutory income.
3. Deductions.
4. Ordinary income.
5. All of the above are included in taxable income.

QUESTION 9

Which of the following is correct?

1. Assessable Income = Ordinary Income - Statutory Income.
2. Assessable Income = Ordinary Income - Deductions.
3. Assessable Income = Ordinary Income - Exempt Income.
4. Assessable Income = Ordinary Income + Statutory Income - Exempt Income.
5. None of the above.

QUESTION 10

Calculation of taxable income does not include:

1. Deductions.
2. Ordinary Income.
3. Exempt Income.
4. Statutory Income.
5. All of the above are included in taxable income.