Question

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

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.

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

Show your working

Homework Answers

Answer #1

CALCULATION OF TAXABLE INCOMEOF SELINA:

NET SALARY - $55000

FULLY FRANKED DIVIDEND INCLUDING CREDITS- $14000

UNFRANKED DIVIDEND- $900

GROSS INTEREST- $1800

TOTAL- $71700

DEDUCTIONS NIL

TAXABLE INCOME - $71700

Your taxable income: $71,700
Income tax payable: $14,849
Medicare levy payable: $1,434
Your income after tax & Medicare levy: $55,417
Your marginal tax rate: 32.5%

This means for an annual income of $71,700 you pay:

No tax on income between $1 - $18,200 $0
19c for every dollar between $18,201 - $37,000 $3,572
32.5c for every dollar between $37,001 - $87,000 $11,277
Income tax payable $14,849

INCOME TAX PAYABLE /REFUNDALE OF SELINA FOR YEAR2017/2018:

INCOME TAX PAYABLE- $14849

Less: PAYG TAX WITHHELD $18000

NET TAX REFUNDABLE $3151

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
During the 2017/18 tax year, Selina Matterson (a single resident taxpayer, aged 41) has the following...
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...
During the 2017/18 tax year, Selina Matterson (a single resident taxpayer, aged 41) has the following...
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...
During the 2017/18 tax year, Selina Matterson (a single resident taxpayer, aged 41) has the following...
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...
In Australia, during the current income year Ricky who is a resident taxpayer, has the following:...
In Australia, during the current income year Ricky who is a resident taxpayer, has the following: • a gross salary of $78,000 (PAYG tax withheld $16,500), • a fully franked dividend of $2,000, • an unfranked dividend of $2,000, and • a 50% franked dividend of $700. • no deductions. • Calculate his 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...
During the current income year Rafael, a resident taxpayer, has a gross salary of $68,000 (PAYG...
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 -...
In Australia, during the current income year Ricky who is a resident taxpayer, has the following:...
In Australia, during the current income year Ricky who is a resident taxpayer, has the following: • a gross salary of $78,000 (PAYG tax withheld $16,500), • a fully franked dividend of $2,000, • an unfranked dividend of $2,000, and • a 50% franked dividend of $700. • no deductions. • Calculate his taxable income and tax payable
(Various offsets - refundable and non-refundable tax offsets) Meghan Royal, is a resident taxpayer aged 57,...
(Various offsets - refundable and non-refundable tax offsets) Meghan Royal, is a resident taxpayer aged 57, had the following transactions for the 2017/18 tax year: RECEIPTS Income Stream Benefit from a taxed superannuation fund (no PAYG tax was withheld) $ 17,000 Gross Wages (PAYG tax withheld $1,500) 22,000 Fully Franked Dividends 4,900 PAYMENTS Private Health Insurance (reduced premium not taken) 3,000 Meghan did not have any deductions. Meghan also wholly maintained her father Phillip for the whole year. Phillip did...
suoerannaution company got gbe following amounts in the 2017/18 tax year unfranked from listed company 12450...
suoerannaution company got gbe following amounts in the 2017/18 tax year unfranked from listed company 12450 franked dividend from listed (fully ftanked comosmy tax rate 30%) 20300 interest from at call deposit (net of 4900 tfn withheld). 5100 proceeds ftom redemption of term deposit (includes principal of 50000) interest from investment segregated to meet the payment of current income stream benefits 35000 calculate the funds assessable income from investments
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
Anushka (an Australian Tax resident) works as an employee for a child care centre, Brilliant Kids...
Anushka (an Australian Tax resident) works as an employee for a child care centre, Brilliant Kids Pty Ltd, on a permanent part-time basis while she runs her business as a day carer for her own customers. Meanwhile, she invested some of her extra cash in some shares on the ASX and in an Australian private company. Listed below is the summary of her earnings for the year ended 30 June 2020. Particulars $ Net Salary Received from Brilliant Kids for...