Question 26

Bilbo has taxable income of $70,000. Which of the following could be true for Bilbo given the tax rates are: 0% $1-$18200; 19% $18,201 - $37,000; 32.5% $37,001 - $90,000

		A tax deduction of $1000 is worth $1000 to him
		A tax offset of $1000 is worth $1000 to him
		A tax offset of $1000 is worth $325 to him
		A tax deduction of $1000 is worth $1325 to him

Question 2

Which of the following would result in a bigger reduction in the tax paid by George who currently earns $45,000 if the tax rates were:

$0 - $18,200 Nil; $18,201 - $37,000 19%; $37,001-$90,000 32.5%. Medicare Levy 2%

		None of these
		If George was able to exclude $1000 of income from his taxable income
		If the tax-free threshold increased by $1000
		If the Medicare levy dropped to 1%

Question 3

The full Medicare Levy is payable by taxpayers once your income is higher than a threshold. Once your income is above this you pay 2% of:

		None of these
		The amount above the threshold less the tax-free threshold
		All of your taxable income
		The amount above this threshold