Question

Dave paid PAYG tax of $7836 and had a taxable income of $34 589. Which of the

following is Dave's tax refund? Select A, B, C or D.

A - $2672.31
B - $4788.20
C - $6622.09
D - $4030.31

Answer 1

Using the information provided, we can calculate Dave's tax refund as follows:

First, we need to determine Dave's total tax liability based on his taxable income. Using the Australian Taxation Office (ATO) tax rates for the 2021-2022 financial year:

For the first $18,200 of taxable income, the tax rate is 0%

For taxable income between $18,201 and $45,000, the tax rate is 19 cents for each dollar over $18,200. This means Dave will pay $3,277.71 on the income between $18,201 and $34,589

Therefore, Dave's total tax liability is $3,277.71

Now we can calculate Dave's tax refund as follows:

Tax refund = PAYG tax paid - Total tax liability

Tax refund = $7,836 - $3,277.71

Tax refund = $4,558.29

Therefore, the correct answer is not one of the options provided. The closest option is option C - $6,622.09, which is off by $2,063.80. The correct answer is approximately $4,558.29.