Assume that Johnstone and Joleen Straw each own 50 of the issued shares in the company The Straws are to be assessed for taxation purposes in the current financial year as a small business on the cash basis The company is to be assessed for taxation purposes in the current financial year as a small business, on the cash basis The company contributed $20,000 into a superannuation fund on Johnstone's behalf, which is a taxation deduction to the company For the purpose of this case study, ignore the impact of the commissions paid or incurred on the superannuation contributions paid into the superannuation fund for Johnstone All net profits of the company after tax for the year ended 30th June in the current year are paid as dividends to Johnstone and Joleen (for the purposes of any case study questions you should assume that the dividends are paid to Johnstone and Joleen in the current income taxation year and that the company tax was also paid in the current year, prior to the payment of dividends) Note that the dividends are paid rather than the salary amounts Using Microsoft Excel calculate the tax payable for both Johnstone and Joleen for the year ending on the 30th of June of the current year, knowing that the Straw's operate in a partnership called J J Straw Motors A written partnership agreement provides that income losses will be shared equally Summarize the total tax and Medicare levy paid under this scenario Calculate the total tax payable by the Company or company and trust structure and Johnstone and Joleen for the year ending on the 30th of June of the current year, on the assumption that the partnership was incorporated into a private company, J J Straw Motors Pty Ltd at the beginning of the current financial tax year Summarise the total tax and Medicare levy paid under this scenario Case Study (1) Case Study Johnstone and Joleen Straw are the operators of a motor mechanic workshop in your local area, currently operating in the form of a partnership called 'J J Straw Motors' They have two children Samantha who is 18 and Jed who is 16 Johnstone was born in Australia and Joleen was born overseas and is from a different cultural heritage to you Both Johnstone and Joleen enjoy the traditions of Joleen's culture Joleen is a great cook and is renowned for making traditional dishes which her friends love They are concerned about a number of issues and risks they face in business Accounting data for the year ended the 30th of June of the current year Income Gross Sales Less Consumables Gross Profit Expenditure Accounting Fees Advertising Bank fees Depreciation $ 395,000 105 000 290,000 5,000 5,000 2,500 4,575 Hire of equipment 750 Interest business 2,000 Insurance including workers compensation 6,500 Motor vehicle expenses (100 business use) 21,500 Other deductible expenses 8,850 Printing Stationery 750 Rents and outgoings 25,000 Superannuation 8,850 Wages staff (excluding the Straws) 95,000 Total Expenditure 186,275

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Posted on Mar 16, 2024

Assume that:

Johnstone and Joleen Straw each own 50% of the issued shares in the company. The Straws are to be assessed for taxation purposes in the current financial year as a small business on the cash basis.
The company is to be assessed for taxation purposes in the current financial year as a small business, on the cash basis.
The company contributed $20,000 into a superannuation fund on Johnstone's behalf, which is a taxation deduction to the company. For the purpose of this case study, ignore the impact of the commissions paid or incurred on the superannuation contributions paid into the superannuation fund for Johnstone.
All net profits of the company after tax for the year ended 30th June in the current year are paid as dividends to Johnstone and Joleen (for the purposes of any case study questions you should assume that the dividends are paid to Johnstone and Joleen in the current income taxation year and that the company tax was also paid in the current year, prior to the payment of dividends). Note that the dividends are paid rather than the salary amounts.

Using Microsoft Excel calculate the tax payable for both Johnstone and Joleen for the year ending on the 30th of June of the current year, knowing that the Straw's operate in a partnership called J & J Straw Motors. A written partnership agreement provides that income/losses will be shared equally. Summarize the total tax and Medicare levy paid under this scenario.
Calculate the total tax payable by the Company or company and trust structure and Johnstone and Joleen for the year ending on the 30th of June of the current year, on the assumption that the partnership was incorporated into a private company, J & J Straw Motors Pty. Ltd. at the beginning of the current financial tax year. Summarise the total tax and Medicare levy paid under this scenario.