Question

Erin, a resident taxpayer, has a taxable income of $53,000 for the year ended 30 June...

Erin, a resident taxpayer, has a taxable income of $53,000 for the year ended 30 June 2020, with PAYG tax of $12,000 deducted by her employer. She has no dependants and is not entitled to any tax offsets/rebates. What will be Erin’s net tax payable or refundable for the year ended 30 June 2020? (include Medicare levy where appropriate but ignore any offsets):

a. $2,168.00 refund

b. $2,980.50 refund

c. $2,234.50 payable

d. $1,834.50 refund

e.$13,150.00 refund

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Answer #1

Computation of Net IncomeTaxpayable /(refundable) of Erin for the year ended 30 June 2020

Net tax Payable/(refundable)=Gross Tax on Taxable Income+MedicareLevy-TaxOffsets

Gross Tax on Taxable Income=

0-$18200 0% 18200*0 0
$18201-$37000 19% (37000-18201)*19% $3572
$37001-$53000 32.5% (53000-37001)*32.5% $5200
Total Gross Tax $8772

Medicare Levy= $53000X2% = $1060

Net Tax Payable/(Refundable)=$8772+$1060-$12000

=($2168)

Therefore, Answer is Option A,($2168.00) Refundable

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