Roadkill

For a school assignment we are asked to work out the tax for a family of 3. But im not sure if i should find the tax on the total income of both parents together or seperate. Considering they both fall into different tax brackets.The first parent earns $67 000 (Annual - before tax)Second earns $40 000 (Annual - before tax)Total $107 000Were told to use the tax brackets from the 'Australian Taxation Office'. http://www.ato.gov.au/individuals/content.asp?doc=/content/12333.htm&mnu=5464&mfp=001/002So, do i have to work them out individually or can i do it as a couple? But then does it make a difference that they fall in different tax brackets?

Lazarus6012

I am assuming you are doing this for the 2007-08 year. The tax system in Australia is worked out individually so you treat each person separate.First person earning $67000 would pay $14700 plus $1005 medicare levy which is $15705 in total.Second person earning $40000 would pay $6600 plus $600 medicare levy being $7200 in total. If they have no health insurance then you would add another 1% each to their tax but you did not say that was in the question.You don't work them out together as you would put the total income into a higher bracket overall as well as missing out on the tax free threshhold for one partner etc.

fredl

use the 107k