Calculate the income tax payable,

1. Linley is an Australian resident for income tax purposes. She has taxable income of $277,000. She has been provided with a receipt for a work-related expense in the amount of $10,000. This expense will constitute an allowable deduction.

How much tax will Linley save for the 202021 income year (tax rates for 2020-21 are provided on page 2) as a result of the additional deduction? (4 marks)

2. Consider the information provided in part (a), in addition to her income of $277,000, Linley has received $5,000 as dividends, rents of property $10,000. What is the Linley tax liability as Australian resident for the 2020-21 income year? (3 marks)

Assume that Linley is foreign resident for Australian tax purpose with taxable Australian income for the 202021 income year Will the tax liability be same for part (a) and part (b) is the tax liability will be same if she is a foreign resident?