Question

Julie lives in the country of Snowland. Calculate her assessable income given that:

she earns a salary of $40,000 per year;

she has $22,000 in a 1 year term deposit which will earn interest at the rate of 5% per year; and

she has study expenses of $2,000 per year that are an allowable deduction.

Your answer should be calculated to the nearest dollar ($ 0dp).

Answer 1

This is the gross income of a taxpayer before any deduction.

Assessable income = Salary + Interest on deposit

                                    = 40,000 + (22,000 × 0.05)

                                    = 40,000 + 1,100

                                    = $41,100 (Answer)