BLOCK 2 TRIMESTER 3 2018: TLAW 303 – TAXATION LAW – ASSIGNMENT QUESTIONS Assessment

BLOCK 2 TRIMESTER 3 2018: TLAW 303 – TAXATION LAW – ASSIGNMENT QUESTIONS
Assessment Details
Due date: 25th Jan 11:59PM
Weighting: 30%
Format: three income tax calculation questions. 10 marks each.
Objectives
Answer the following questions with reference to the relevant legislative provisions
operating in Australia concerning the calculation of income tax. Do not consider the
effects of legislation potentially applicable other than that specifically identified.
(There is no word limit)
Assessment Tasks
Question 1 10 Marks
Calculate the below for the following taxpayers for the year ended 30 June 2018:
• income tax payable (ignore the offset)
• Medicare levy
1 An Australian individual aged 25 years who is a resident with a taxable income of
$15,000. 2 marks
2 An Australian resident, eligible for a Seniors tax offset, with a taxable income of
$32,000. 2 marks
3 An Australian individual (45 years old) who is a resident with a taxable income of
$155,000 and he is holding no private health insurance throughout the whole year.
2 marks
4 An Australian company qualified as a “small business entity” with a taxable income of
$100. 2 marks
5 An Australian individual who is a non-resident with a taxable income of $255,000.
2 marks
Question 2 10 Marks
You client, Jeremy, has the following income and deductions for the financial year ended 30 June
2018:
Salary $32,000
Bank Interest $150
Allowable deductions for special work clothing $450
Employer-deducted PAYG $2,600
Income tax payable/refundable ?
Calculate Jeremy’s income tax payable or refundable for FY2018.
Question 3 10 Marks
During the current income year Rafael, a resident taxpayer, has the following income for the
financial year ended 30 June 2018:
Gross salary $68,000
PAYG tax withheld $15,100
Fully franked dividend $2,000
Unfranked dividend $1,000
Franked (60%) dividend $900
Deductions Nil
Taxable income ?
Calculate Rafael’s taxable income and tax payable for FY2018.