Question

For the 2020/21 financial year, the tax-free threshold is $18,200. How much tax will an employee earning $692 per fortnight pay per year?

a. $0.19 per $1
b. $6,920
c. $212
d. $0

Answer 1

The employee earning $692 per fortnight will pay $0 in tax per year.

Step-by-step explanation:

To calculate the tax an employee will pay per year, we need to determine their annual earnings first. The employee earns $692 per fortnight, so we can multiply this amount by 26 to get the annual earnings. $692 * 26 = $17,992.

Since the tax-free threshold for the 2020/21 financial year is $18,200, the employee's earnings are below the threshold. As a result, they won't have to pay any tax.

The correct answer is d. $0.