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Let's break down the problem step by step.

### Part (a) – Calculate Nick's Taxable Income for 2016–2017:

- **Nick's commission**: He earns 1% on total sales of $8.5 million.
  \[
  \text{Commission} = 1\% \times 8,500,000 = 0.01 \times 8,500,000 = 85,000
  \]

- **Other income**: Nick also earned $1,600 from bank interest.

  \[
  \text{Total Income} = 85,000 + 1,600 = 86,600
  \]

- **Deductions**: He has $800 in work expenses and $500 in tax-deductible donations.
  \[
  \text{Total Deductions} = 800 + 500 = 1,300
  \]

- **Taxable Income**:
  \[
  \text{Taxable Income} = 86,600 - 1,300 = 85,300
  \]

So, Nick's taxable income for the financial year 2016–2017 is **$85,300**.

### Part (b) – Calculate Tax Payable Using the Table:

Nick's taxable income of $85,300 falls in the range of $37,001 to $87,000.

The tax on this range is:
- First $37,000: taxed at a base of $3,572.
- Remaining income over $37,000: taxed at 32.5 cents for every dollar.

Remaining taxable amount:
\[
85,300 - 37,000 = 48,300
\]
Tax on the remaining $48,300:
\[
48,300 \times 0.325 = 15,697.50
\]

Total tax payable:
\[
\text{Total Tax} = 3,572 + 15,697.50 = 19,269.50
\]

So, the total tax payable by Nick for the financial year is **$19,269.50**.

---

Would you like more details on the calculation? Here are 5 related questions:

1. How would Nick's tax change if he had additional deductions?
2. What would happen if Nick's total income was above $87,000?
3. How are tax brackets different in other countries for similar income levels?
4. Can Nick benefit more from additional charitable donations for tax purposes?
5. How is bank interest taxed differently from commission income?

**Tip**: Keeping track of deductions like work-related expenses and donations can significantly reduce your taxable income.

Nick works as a real estate agent and receives a commission of 1% of all the sales he makes. In the financial year 2016-2017 he sold a total of $8.5 million dollars worth of homes. In addition, Nick also earned $1600 worth of interest from the bank, while spending $800 on work expenses and making $500 worth of donations that are tax deductible. Calculate Nick’s taxable income and use the provided table to determine his tax payable for the year.

Learn how to calculate Nick’s taxable income for 2016–2017 based on his real estate commission, bank interest, work expenses, and tax-deductible donations. This problem explores income taxation and deductions, along with detailed steps for computing the final tax payable using provided tax rates.

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