(a) Steven is a thirty-year-old Australian resident for tax purposes.  He is single with no dependants and resides permanently in Newcastle. Steven’s Payment Summary for the year ended 30 June 2021 showed the following details:

in addition Steven received a fully franked dividend from an ASX listed (Non- Small Business Taxpayer) Company of $4,000 and had a net rental loss of $6,500. Steven has no private hospital cover during the year and at 30 June 2021 had an accumulated HELP (HECS) debt of $18,250. Steven had no other income or allowable deductions for the year.

Required:
Calculate the net tax payable/refundable by Steven with respect to the year ended 30 June 2021.

(b) Nigel Banner has volunteered to work for a charity helping homeless people in Sydney. Nigel will work for the charity without pay for a period of six months. During this period Nigel will live off his personal savings. In appreciation of Nigel’s selfless act his long term employer, Banman Pty Ltd, has generously offered to pay him a fortnightly payment equal to one half of his previous wage for the period he is with the charity.

Required
With reference to case law, advise Nigel whether he will be assessable on the amounts received from Banman Pty Ltd during his absence.

 

Gross Salary Reportable Fringe Benefits Reportable Employer Superannuation Contributions PAYG Deducted $ 92,500 4,100 5,900 30,000