Question

George Z was born in New York but now lives in Australia.

For the current tax year refer to George Z’s following information:

Salary from full time work $100,000

Salary from weekend work $16,000

Expenses due to work $5,000

Speeding fines incurred in his very fast company car while traveling to his full time work $1,000

A tax offset of $10,000

A HELP debt with a balance of $25,000

Private insurance premiums of $300 per month beginning. The policy was taken out on 1 January 2020.

The employer provided a company car to George Z for his full-time work and he pays for petrol on the weekends $50 per week for 52 weeks of the year.

Calculate: George Z’s total tax payable. Show all workings.

Answer 1

Answer- Calculation of Taxable Income

Salary from full time work	$100,000
Salary from weekend work	$16,000
	$116,000
Less: Expenses due to work	$5,000
Less: Travelling Expenses (50*52)	$2,600
	$108,400
Private Insurance Premium (300 *12)	3,600
	$104,800
Less: Repayment of Help Debt (7.5% of $25,000)	$1,875
Taxable Income	$102,925

Calculation of Tax Payable

Taxable Income $102,925

Tax Payable- $20,797+ 37% for each $1 over $90,000

=$20,797+ 37% ($102,925-90,000)

=$25,579.25

Tax Payable	$25,579.25
Less: Tax offset	$10,000
Net Tax Payable	$15,579.25