Question

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 per the ITRA 1986
- Calculation of the Medicare levy
- Calculation of Rafael’s Franking tax offset and PAYG tax withheld
- Calculation of income tax payable or refundable by applying the method in s 4-10 ITAA
1997

Answer 1

Particulars	Amount ($)
Gross Salary Received	78000
Add: Fully Franked Dividend plus Franking credit thereof (2000 + 2000*30/70)	2857
Add: Unfranked Dividend	2000
Add: 50% Franked Dividend plus franking credit thereof (700 + 700*50%*30/70)	850
Total Taxable income	83707

Particulars	Amount ($)
Total Taxable Income	83707
Tax On total income ( 3572 + 32.5% {83707-37000})	18752 (approx)
Add: 2% Medicare levy	375
Tax Payable	19127
Less: PAYG Withhold tax	(16500)
Less: Franking Credits ( 857 +150)	(1007)
Net Tax Payable	1620