Earning and Managing Money

Question 1

Define

Salary

Answer 1

Payment for a year’s work, divided into equal payments at regular intervals (weekly, fortnightly, etc.)

Question 2

Wage

Answer 2

Pay calculated on an hourly basis, usually paid weekly of fortnightly.

Question 3

Define

Leave/Holiday Loading

Answer 3

An amount givern to workers at the start of a holiday, to assist with holiday expenses. It is usually 17.5% of the normal pay for the weeks taken off.

Question 4

Define

Bonus

Answer 4

An additional amount paid to a worker, often calculated as a percentage of normal pay.

Question 5

Define

Casual Pay

Answer 5

Similar to wages, but with no set hours and no sick leave, holiday loading, etc.

Question 6

Define

Overtime

Answer 6

An increased hourly rate of pay recived when somebody works outside their ‘normal’ hours.

Question 7

Define

Special Allowances

Answer 7

Additional pay recieved by workers who must work in dangerous or inhospitable conditions, or to cover expenses.

Question 8

Define

Commision

Answer 8

Commission is a method of pay open to salespeople such as real estate agents. It is where you are paid a percentage of the value of the goods you sell. You may be paid a small wage, known as a retainer, in addition to the commission.

Question 9

Define

Piecework

Answer 9

This is where people are paid for each piece of work they complete. Examples include contractors, shearers etc. Some artists may also be paid through piecework. There is no sick leave of holiday pay, and a need to provide your own superannuation, etc.

Question 10

Define

Gross Income

Answer 10

The total amount you earn

Question 11

Define

Taxable Income

Answer 11

The amount you pay tax on

Question 12

Define

Net Income

Answer 12

The income you have left over after tax and other deductions are removed.

Question 13

Define

Tax deductions

Answer 13

Expenses, usually related to work or charity, which you do not need to pay tax on.

Question 14

Taxable income formula

Answer 14

Taxable Income = Gross Income - Allowable Deductions

Question 15

Define

Post-Tax Deductions

Answer 15

Regular amounts of money taken
out of pay after the tax has been calculated. - for instance, income tax, insurance, mortgage/rent

Question 16

How do you calculate tax?

Answer 16

1. Find the correct tax bracket.
2. Find the difference between the taxable income and the lower value of the tax bracket (the last figure in the row).
3. Multiply this answer by the bracket’s marginal tax rate (the percentage value, which is sometimes given as cents).
4. Add the initial tax, if applicable (the first value in the row).

Question 17

Define

Medicare
Levy

Answer 17

An additional 2% of your taxable income, with exemptions for low income earners, which helps to cover the cost of our universal health care system.