Question

During the current income year Rafael, a resident taxpayer, has a gross salary of $68,000 (PAYG tax withheld $15,100), a fully franked dividend of $2,000, an unfranked dividend of $1,000, and a 60% franked dividend of $900.
There are no deductions. Calculate Rafael’s taxable income and tax payable

Calculation of Rafael’s taxable income by applying the statutory formula under s 4-15 ITAA 1997

- Calculation of Rafael’s tax liability per the ITRA 1986

- Calculation of the Medicare levy

- Calculation of Rafael’s Franking tax offset and PAYG tax withheld

- Calculation of income tax payable or refundable by applying the method in s 4-10 ITAA 1997

Answer 1