Question

During the 2017/18 tax year, Selina Matterson (a single resident taxpayer, aged 41) has the following receipts:

• Net salary (after $18,000 PAYG tax withheld) $55,000
• Fully franked dividend from PPP Ltd $9,800 (with franking credit $4,200)
• Unfranked dividend from QQQ Ltd $900
• Net interest received $954 (after $846 no TFN tax withheld)
• Selina had no deductions
• She was covered by private hospital insurance

Required:

Calculate Selina’s taxable income for the 2017/18 tax year.

Calculate Selina’s net tax payable/refundable (including Medicare Levy) for the 2017/18 tax year.

important Notes : 1) We should only include the  Gross interest (rather than net interest) in part a

2) Dividends and franking credit

Show your working step by step

Answer 1

a)

b)

Calculate the Selina's taxable income for the 2017/18 tax year:

Particulars	Amount
Taxable Income	85,500
Tax [3,572 + 32.5% * (85,500 – 37,000)]	19,334.5
Add: Medicare Levy (85,500 * 2%)	1,710
Less: Interest tax withheld	(846)
Less: Franking credit	(4,200)
Tax Payable	15,998.5