All of the facts in this scenario relate to the 20202021 income year of Ruth Forrest, aged 36. Ruth is married to Tom Forrest. Ruth and Tom are Australian resident individuals. Both are employed by The University of Queensland. This is the summary of the Single Touch Payroll data that The University of Queensland uploaded to their individual ATO profiles:

	Ruth	Tom
Gross salary	$98,000	$116,000
PAYG withheld and remitted to the ATO	$28,654	$23,900
Reportable fringe benefits	$1,400	$0

This is the other information relevant to Ruths 20202021 income year:

• Ruth and Tom do not have private health cover.
• Tom has no other assessable income or deductions.
• Ruths HELP debt balance from her undergraduate journalism studies totals $12,500.
• On 1 July 2020 Ruth borrows $30,000 from her bank to purchase 320 Commonwealth Bank shares. During the 20202021 income year, she pays $1,950 in interest on this loan.
• Ruth receives the following dividend advice statement from the Commonwealth Bank:

Commonwealth Bank Ltd				Dividend advice statement
Ruth Forrest 1 Australia Street, St Lucia, QLD, 4067		Security holder reference number 699 234 678		Dividend payment date 30 April 2021
Interim Fully franked dividends for the period ending 31 December 2020 Franked at a tax rate of 30%
Class description	Dividend rate per ordinary share	Number of ordinary shares	Franking credits	Unfranked amount	Franked amount
Ordinary shares	295 cents	320	$404.57	$0	$944.00
TFN quoted	Dividend paid into security holders nominated bank account				$944.00

1. What is the value of Ruths Medicare Levy due for the 20202021 income year?

		$1,960.00
		$1,986.98
		$1,947.98
		$0

2. What is the value of Ruths taxable income for the 20202021 income year?

		$97,399
		$98,944
		$98,000
		$96,994
		$99,349

3. What would the correct income tax treatment of the dividends be if Ruth elected not to receive the money, but used the funds to purchase four (4) more Commonwealth Bank shares under the companys dividend reinvestment plan?

		The dividends will not be assessable income to her as she has no receipt
		The dividends will be statutory income to her using the provisions of s 44 ITAA36
		The dividends will be classified as a deemed dividend using the provisions of Div 7A ITAA36
		The dividends will be treated as a capital receipt as she uses the funds to purchase new Commonwealth Bank shares

4. What is the total value of Ruths tax offsets for the 20202021 income year?

		$29,916.60
		$404.57
		$28,654.00
		$29,058.57
		$1,262.60