Question

Answer the following multiple choice questions by selecting the most appropriate answer in each case. 1.1 Based on the following information, what is the tax liability of a single, resident taxpayer for the 2017-2018 income year:  Gross salary from employment, $50,000.  PAYG withheld from gross salary by employer, $8,000.  Interest received from a bank savings account, $450.  The taxpayer has sufficient private patient hospital insurance.  The taxpayer is 29 years old.

a. $8,000.00 refund b. $709.00 tax payable c. $952.25 tax payable d. $56.75 refund

1.2 Hamilton is single and a resident taxpayer. During the 2017-2018 income year, he earns royalties of $6,000 from a source in the United Arab Emirates. Assuming there is no tax treaty between Australia and the United Arab Emirates and that royalties are not taxed in the United Arab Emirates:

a. Hamilton will not be liable for tax on the royalties since it has a source outside of Australia.

b. Hamilton will be eligible to claim a foreign income tax offset for the royalties, against his taxes payable in Australia.

c. Hamilton will include the royalties in his taxable income in Australia.

d. Since there is no tax treaty between Australia and the United Arab Emirates, Hamilton will only have to declare the royalties to the tax authorities in the United Arab Emirates.

Also need the cauculation process, thank u very much

Answer 1

1. Option B 709 tax payable

Total taxable income = 50000+450 = 50450

Base income:	$50450.00
Tax on income:	$7943.25
Medicare Levy:	$1009.00
Low Income Tax Offset:	$(243.25)
Total tax:	$8709.00

Therefore total tax is 8709, from it PAYG withheld will be deducted that is 8709-8000= 709 is tax payable.

2. Answer is option B

Foreign income you receive as an Australian resident may be taxed in both Australia and the country from which you received it. If you have paid foreign tax in another country on foreign income you received, you may be entitled to an Australian foreign income tax offset.