Question

Calculate the income tax payable, ignoring the Medicare levy, for the following taxpayers for the year ended 30 June 2018:

(a) An Australian individual who is a resident with a taxable income of $15,000.

(b) ) An Australian individual who is a non-resident with a taxable income of $15,000.

(c) ) An Australian company with a taxable income of $15,000.

(d) ) An Australian individual who is a resident with a taxable income of $155,000.

(e) ) An Australian individual who is a non-resident with a taxable income of $155,000.

(f) An Australian company with a taxable income of $155,000.

(g) ) An Australian individual who is a resident with a taxable income of $255,000.

(h) ) An Australian individual who is a non-resident with a taxable income of $255,000.

(i) An Australian company with a taxable income of $255,000.

(j) An Australian company qualified as a “small business entity” with a taxable income of $100.

Answer 1

(a) Nil

(b) $4,875

(c)

(i) If the company comes in the category of small business(with a turnover of less than $10 million) tax rate is 27.5 %. Tax will be $4,125

(ii) Otherwise , the tax is 30% of taxable income . Tax will be $4,500.

(d) $19,822 + $0.37(155,000-87,001) = $44,981.63

(e) $28,275 + $0.37(155,000-87,001) = $53,434.63

(f)

(i) If the company comes in the category of small business(with a turnover of less than $10 million) tax rate is 27.5 %. Tax will be $42,625

(ii) Otherwise , the tax is 30% of taxable income . Tax will be $46,500.

(g) $54,232+$0.45(255,000-180,001) = $87,981.55

(h) $62,685 + $0.45(255,000-180,001) = $96,434.55

(i)

(i) If the company comes in the category of small business(with a turnover of less than $10 million) tax rate is 27.5 %. Tax will be $70,125

(ii) Otherwise , the tax is 30% of taxable income . Tax will be $76,500.

(j) For small businesses tax rate is 27.5% . Tax will be $27.50