Wages and Salaries

LEARNING OBJECTIVE:
Students will be able to calculate wages and salaries.

PRIOR LEARNING: NEW KNOWLEDGE:

- know the number work - wages and Salaries
from Stage 3

A MORE PRECISE number of weeks per year

(using for 4 years (including a leap year) = (365+365+365+366)/4 = 365.25 is found by:

BUT we will work with 52 weeks for ALL our questions.

There are 26 FORTNIGHTS in a year (a “fortnight” means “14 nights” and is equal to 2 weeks).

NOTE: a month is NOT exactly 4 weeks (some months are 30 or 31 days).

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USE: 1 year = 52 weeks = 26 fortnights = 12 months.

Example 2A: Sarah has a monthly income of $6200. What is this as a fortnightly income? (answer to
nearest cent).

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Example 3A: Peter earns $3500 per fortnight, how much does he earn in a year?

2024 Standard Textbook - Ex 8:01 Q1 all, Q3, Q4, Q6 a b, Q7, Q9 a c, Q10 all, Q14, Q16, Q17, Q18
(answer $3507.69)

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 Overtime Pay
LEARNING OBJECTIVE:
Students will be able to calculate the pay for overtime work

PRIOR LEARNING: NEW KNOWLEDGE:

- know the number work - overtime
from Stage 3

Working out of standard normal hours might be working into the evening or working on weekends.

Some other “Penalty Rates” include “two-and-a-half” (X 2.5) or “triple time” (X 3). These sort of
HIGHER overtime rates might be paid for someone working on Christmas Day.

Recently, the Federal Government has tightened up on penalty rates in the hospitality industry
(working on weekends sometimes gained ‘overtime’ rates of pay but this is not as common as it used
to be in this area of employ).

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HARDER type of question:

Write a ‘let’ statement and solve algebraically.

Let x be the hourly rate of pay.

2024 Standard Textbook: Ex 8-02 Q1 a c e, Q2, Q4, Q5, Q6, Q7, Q8 a c f, Q9 b d f, Q10 a c e,
TECHNOLOGY ACTIVITY page 317/639 (email your completed Excel Spreadsheet to your teacher)

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Commission, Piecework and Leave Loading
LEARNING OBJECTIVE:
Students will be able to calculate commission, piecework and leave loading.

PRIOR LEARNING: NEW KNOWLEDGE:

- know the number work - commission
from Stage 3 - piecework
- leave loading

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Example 9A:

$700 000

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Example 10A:

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Example 10B

Example 11A:

(a) $42 400 p.a. (“p.a.” means “per annum” (per year)).

(b) $6750 per month.

(c) $1095 per week (use 1 year = 52 weeks).

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Example 12A:

2024 Standard Textbook Ex 8-03:

Commission: Q1, Q2, Q3, Q4, Q5, Q6, Q7. Piecework: Q8 a b c, Q9 all, Q10.

Royalties: Q11, Q12, Q14. Annual Leave Loading: Q15, Q16, Q20. Bonuses: Q19.

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 Income Tax
LEARNING OBJECTIVE:
Students will be able to calculate income tax from a tax table.

PRIOR LEARNING: NEW KNOWLEDGE:

- know the number work - income tax
from Stage 3

Anyone who earns more than $18 200 in a financial year (1st July to 30th June) must pay INCOME TAX
to the federal government.

Income includes money earned from a job or interest earned from bank accounts. Your GROSS
INCOME is money earned BEFORE TAX and other deductions are taken out.

The government uses this money paid in tax to fund public infrastructures such as schools, hospitals,
roads and the defence forces.

Not ALL your income is taxed. There are allowable deductions such as work-related expenses (e.g.
uniforms or travel expenses) or donations to charities. You are take off these deductions BEFORE
you are taxed. This is called the TAXABLE INCOME.

Taxable Income = Gross Income – Allowable Deductions

(rounded DOWN to the nearest dollar)

The more the person earns, the higher the rate of tax to be paid. The table below shows how all
Australian Individual Residents tax is calculated for this financial year (2022-23).

NOTE: the tax brackets MAY change slightly from some financial years to another.

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Example 1: Use the tax table above to calculate the tax payable on a taxable income of:

$14 000:

Tax =

$25 000:

Tax =

$60 000:

Tax =

$140 000:

Tax =

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$200 000:

Tax =

$2 000 000:

Tax

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 Example 3: Last financial year, Phoebe earned
Example 2: Last financial year, Joseph earned a a gross income from her job of $123 000. She
gross income from his job of $75 000. He also also earned $1900.25 in interest on her share
gained $1400 in bank interest. Joseph was portfolio. She bought office supplies for her
allowed $880.13 in work-related deductions work for $3403.78 as well paid for her uniform
and he also gave $300 to registered charities. for $667.80. All of these are allowable
deductions for her tax.
(a) What was Joseph’s taxable income?
(a) What was Phoebe’s taxable income?

(b) Using the tax table above, calculate the

(b) Using the tax table above, calculate the tax that Phoebe must pay on the
tax that Joseph must pay on the taxable taxable income.
income.

2024 Standard Textbook Ex 8-04 Q1 to Q10 (all). NOTE: the textbook uses a tax table as for 2022-23
above.

Use this tax table in the textbook to do your calculations and then check your answers from the
textbook.

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Pay As You Go (PAYG) Tax and Net Pay
LEARNING OBJECTIVE:
Students will be able to calculate the PAYG Tax and Net Pay

PRIOR LEARNING: NEW KNOWLEDGE:

- know the number work - income tax
from Stage 3 - gross and net pay

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2024 Standard Textbook (over 2 lessons) Ex 8-05 Q1, 2, 4, 6, 7, 9, 11 all, 12 all, 13 all, 14 all,
PowerPlus Q1 to 10.

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