Mathematics • Year 10 • Unit 1 • Lesson 3

Budgets & GST — Skill Drill

Build fluency with the three tools from Lesson 3: the budget balance (Savings = Income − Expenses), adding 10% GST (× 1.10), and stripping GST from a total (÷ 11). One step at a time — fully worked example, guided practice, then independent problems.

Build · I Do / We Do / You Do

1. I do — fully worked example

Read every line. Each step has a short reason on the right so you can see why, not just what.

Problem. A new phone costs $1,099 including GST. Find the GST amount and the pre-GST (before-tax) price.

Step 1 — Spot the rule.

The shelf price ($1,099) already includes 10% GST → use ÷ 11 to extract the GST portion.

Reason: a GST-inclusive total is 110% of pre-GST. GST as a fraction of total is 10/110 = 1/11.

Step 2 — Divide the total by 11 to get the GST amount.

GST = $1,099 ÷ 11 = $99.91 (to nearest cent)

Reason: division by 11 gives the GST portion of any GST-inclusive total.

Step 3 — Subtract GST from the total to get the pre-GST price.

Pre-GST = $1,099 − $99.91 = $999.09

Reason: total = pre-GST + GST, so pre-GST = total − GST.

Step 4 — Check (alternative method).

Pre-GST = $1,099 ÷ 1.10 = $999.09 ✓

Reason: dividing the total by 1.10 strips off the 10% mark-up. Same answer.

Answer: GST = $99.91, pre-GST price = $999.09.

Stuck? Revisit lesson § "GST in Australia" — Worked Example 2.

2. We do — fill in the missing steps

Same structure as Section 1, but with the working faded. Fill in each blank. 4 marks

Problem. Riley earns $2,400 per month. Essential expenses are $1,400 and discretionary expenses are $600. Find Riley's monthly savings and savings percentage.

Step 1 — Spot the rule: Savings = Income − ________________________.

Step 2 — Add the two expense categories:

Total expenses = $1,400 + $______ = $______

Step 3 — Apply the savings formula:

Savings = $2,400 − $______ = $______

Step 4 — Find savings as a percentage of income:

Savings % = $______ ÷ $2,400 × 100 = ______ %

Step 5 — Check against the 50/30/20 rule:

Is ______% close to the 20% savings target? Yes / No (circle one)

Stuck? Revisit lesson § "Creating a Personal Budget" — Worked Example 1.

3. You do — independent practice

Show your working in the space under each problem. The first four are foundation (single step). The middle two are standard (two steps). The last two are extension (multi-step in syllabus).

Foundation — single step

3.1 A laptop costs $1,320 including GST. Find the GST amount.    1 mark

3.2 A tradesperson quotes $450 plus GST. Find the total amount the customer pays.    1 mark

3.3 A restaurant bill is $88 including GST. How much GST was charged?    1 mark

3.4 Income is $1,800 per month and total expenses are $1,550. Calculate the monthly savings.    1 mark

Standard — combine two steps

3.5 Tahlia earns $3,200 per month. Her essential expenses are $1,950 and discretionary expenses are $850. Calculate her monthly savings and savings percentage.    2 marks

3.6 A tablet is advertised as "$649 plus GST". Find the GST and the GST-inclusive total.    2 marks

Extension — push your thinking

3.7 Apply the 50/30/20 rule to a weekly income of $1,150. Find the dollar amount for needs, wants and savings.    3 marks

3.8 An electrician's invoice shows: parts $220 (pre-GST), labour $480 (pre-GST). Calculate the GST charged and the total amount owing.    2 marks

Stuck on 3.8? Add parts and labour first, then × 1.10 (or × 0.10 for GST alone).

How did this worksheet feel?

What I'll revisit before next class:

Answers — Do not peek before attempting

Section 2 — We do (faded Riley's budget)

Step 1: Savings = Income − Total expenses.
Step 2: Total expenses = $1,400 + $600 = $2,000.
Step 3: Savings = $2,400 − $2,000 = $400.
Step 4: Savings % = $400 ÷ $2,400 × 100 = 16.7% (1 dp).
Step 5: No — 16.7% is below the 20% target. Riley is saving less than the rule recommends.

3.1 — Laptop GST

GST = $1,320 ÷ 11 = $120.

3.2 — Tradesperson's total

Total = $450 × 1.10 = $495.

3.3 — Restaurant GST

GST = $88 ÷ 11 = $8.00.

3.4 — Monthly savings

Savings = $1,800 − $1,550 = $250.

3.5 — Tahlia's budget

Total expenses = $1,950 + $850 = $2,800. Savings = $3,200 − $2,800 = $400.
Savings % = $400 ÷ $3,200 × 100 = 12.5%.
Below the 20% target — she could try to cut discretionary expenses.

3.6 — Tablet GST and total

GST = $649 × 0.10 = $64.90.
Total = $649 + $64.90 = $713.90 (or $649 × 1.10).

3.7 — 50/30/20 rule on $1,150

Needs (50%) = 0.50 × $1,150 = $575.
Wants (30%) = 0.30 × $1,150 = $345.
Savings (20%) = 0.20 × $1,150 = $230.
Check: $575 + $345 + $230 = $1,150 ✓.

3.8 — Electrician's invoice

Pre-GST subtotal = $220 + $480 = $700.
GST = $700 × 0.10 = $70.
Total owing = $700 + $70 = $770 (or $700 × 1.10).