Destiny Childs is a 57-year-old, single, resident taxpayer. She has appointed you as her tax agent and provided you with the following information for the 2019/20 tax year: Net Business Income $ 42,000 Gross Wages (no PAYG tax withheld) $ 10,000 Assessable portion of Net Capital Gain $ 33,000 Net Loss from Rental Property ($ 22,000) Reportable fringe benefits $ 7,000 Destiny does not have any dependents and was NOT covered by private hospital health insurance. 

 

REQUIRED: 

(a) Who would you consult if you required advice and guidance to determine any income tax related issues? 

 

(b) Using the Excel template provided by your firm, calculate Destiny's net tax payable or refundable for the 2019/20 tax year. Clearly show all workings for each component of your calculation.

 

my answer 

(b) Calculate Destiny's net tax payable or refundable for the 2019/20 tax year
Note- Please show all workings where necessary
Please write your workings/explanations and answers in Blue cells
Destiny Childs is a 57 year-old, single, a resident taxpayer
Receipt Items	Receipt Amount ($)	Write your Reasons or Workings (if applicable)	Enter receipt amount here $
Assessable Income
Net Business Income	42,000	Assessable income	42,000
Gross Wages (no PAYG tax withheld)	10,000	Assessable income	10,000
Assessable portion of Net Capital Gain	33,000	Assessable income	33,000
Net Loss from Rental Property	(22,000)	will be claimed	-22,000
Reportable fringe benefits	7,000	Not an assessable income (reported under income test)	-
Total Assessable Income			63000
Deduction Items	Expense Amount $	Write your Reasons or Workings (if applicable)	Enter deduction amount here $
Less: Deductions  (May not be required)
Total Deductions			0
TAXABLE INCOME			63000
Tax on taxable income		$3572+32.5%(63000-37000)	12,022.00
Add: Medicare Levy (if applicable)		2% of taxable income	1,260.00
Add: Medicare Levy Surcharge (if applicable)		63000+7000+22000>90,000	700.00
Less: Tax Offsets (If any)
Less: Low Income Tax Offset  (if applicable)		445-1.5%(63000-37000)	-55.00
Less: Low-Middle Income Tax Offset  (if applicable)			-                             1,080.00
Less: PAYG tax withheld			-
TAX PAYABLE / (REFUNDABLE)			12,847.00

 

 

assessor comment below: 

Question 1(b)

Calculation of tax payable/ refundable

Tax payable/ refundable is incorrect, please revise: Consider Small Business Income Tax offset-refer chapter 6 (you may insert a row under Tax offsets)