1. **State the problem:** We need to determine if James has paid too much tax or not enough by comparing the total tax he owes with the amount his employer has already sent to the ATO. 2. **Recall previous results:** - Taxable income: $93,600$ - Tax payable (from part b): Calculate using the tax table. - Medicare levy (from part c): 2% of taxable income. 3. **Calculate tax payable:** Since $93,600$ is between $45,001$ and $200,000$, use the formula: $$\text{Tax} = 5092 + 0.30 \times (93,600 - 45,000)$$ Calculate the difference: $$93,600 - 45,000 = 48,600$$ Calculate the tax on the difference: $$0.30 \times 48,600 = 14,580$$ Add the base tax: $$5092 + 14,580 = 19,672$$ 4. **Calculate Medicare levy:** $$\text{Medicare levy} = 0.02 \times 93,600 = 1,872$$ 5. **Calculate total tax payable:** $$19,672 + 1,872 = 21,544$$ 6. **Compare with tax paid:** James's employer sent $20,000$ to the ATO. 7. **Calculate refund or liability:** $$\text{Difference} = 20,000 - 21,544 = -1,544$$ Since the difference is negative, James has underpaid tax by $1,544$ and owes this amount to the ATO. **Final answer:** James owes $1,544$ more in tax to the ATO.