Comprehensive Individual Tax Return Michael Zack, a resident taxpayer aged 49, runs a sole trading business selling coffee machines. His business is registered for GST. He also works on a casual basis as a salesperson on weekends at Myer. He has a rental property in Gold Coast, Brisbane. Michael is taking care of his wife Susan Zack, who has lost one of her legs 2 years ago as a result of a car accident. Michael is solely taking care of Susan. They have no children.

Personal Information

Name: Michael Zack TFN: 300 001 000

Date of Birth: 15 July 1974

Address: 3 Dimple Street, Melbourne VIC 3358 Contact: 0456 587 987 (Work: 03 9578 3648)

Bank account: BSB 225887 Account 378458

Michael is not covered by a private hospital cover.

Spouse: Susan Zack

Date of Birth: 30 July 1989

Currently receives a disability pension from Centrelink $5,200 for the 2019 tax year.

She has no deductions to claim for the 2019 tax year.

Income/Expense Information:

Michael and Susan have a joint term deposit account at CBA. Total interest received from the joint account was $1,500 for the 2019 financial year.

Michael has paid $700 to a registered tax agent for preparing his tax return for 2018 tax year.

In addition to the above, the following information relates to his employment All expenses have been substantiated unless it states otherwise.

Regarding his employment

Employer: Myer Pty Ltd (ABN: 11 235 365 874)

Gross wages for the 1st of July 2018 to the 30th of June 2019: $9,800 (PAYG withheld: $400)

He also received $800 uniform allowance and $200 reimbursement from Myer for work-related items he purchased.

Michael received a car from the employer as a fringe benefit (showing as reportable in his PAYG summary, valued $60,000 not exempt from FBT)

Work-related allowable deductions to claim (telephone & stationery) $600.

Required:

1) Michael wishes to minimise his income tax for 2018/19. Calculate Michaels taxable income for 2018/19. You are required to enter income and deduction details where applicable