It was estimated that the Australian Government would make $72 620 million revenue from the Goods and Services tax (GST) in the 2020–21 financial year.This being based on the GST percentage of 10%.If the government increased the GST percentage to 15%, what would have been the predicted revenue in the 2020–21 financial year?A. $10 893 millionB. $36 310 millionC. $108 930 millionD. $145 240 million
Question
It was estimated that the Australian Government would make 10 893 millionB. 108 930 millionD. $145 240 million
Solution
To solve this problem, we first need to understand that the original revenue of $72,620 million is based on a GST of 10%.
If the GST is increased to 15%, that's an increase of 50% (because 15 is 50% more than 10).
So, to find the new revenue, we need to increase the original revenue by 50%.
Here's how to do it:
Step 1: Convert the percentage increase to a decimal. 50% = 0.5
Step 2: Multiply the original revenue by the decimal. 36,310 million
Step 3: Add the result to the original revenue. 36,310 million = $108,930 million
So, if the Australian Government had increased the GST to 15%, the predicted revenue for the 2020-21 financial year would have been $108,930 million.
Therefore, the correct answer is C. $108,930 million.
Similar Questions
Suppose the income tax schedule in Australia is:IncomeTax on this income0-$20,000None$20,000 and above30 cents per dollar of income over $20,000 Your income in 2022 was $30,000. Inflation between 2022 and 2023 is 10% and your pre-tax income rises between 2022 and 2023 at the inflation rate.Group of answer choicesYour after-tax income increases by less than 10%Your after-tax income is unchanged.Your after-tax income increases by 10%Your after-tax income increases by more than 10%
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