Dr Ross Smith, an Australian tax resident, works for a large private hospital. He also owns several patents for medical devices that he designed when he studied medicine in the 1990s. At the end of the 2017-2018 income year, Dr Smiths employer issues him with a Payment Summary detailing the following:

Gross salary, $325,000.

PAYG deducted, $95,000.

Reportable fringe benefits, $30,000.

During 2017-2018 income year, Dr Smith issued invoices totalling $20,000 to four businesses for royalties owing to him. The royalties related to long-standing contracts that allow these businesses to manufacture medical devices using his patents. As at 30 June 2018, $2,500 of the invoices remained unpaid. He also received an equivalent $6,270 in interest from a bank term deposit that he held with a bank in Kenya. This amount was paid into his bank account on 1 June 2018 after the bank in Kenya deducted withholding tax equivalent to $500. There is no tax treaty between Australia and Kenya. During the income year, Dr Smith also received:

$550 in unfranked dividends.

A fully franked dividend of $700 from ZPT Ltd, the largest property development company in Australia. A partially franked (80%) dividend of $1,400 from Mini Combs Pty Ltd, a small private company with a turnover of $8 million. Dividends of $4,000 from British Telecom Plc.

The dividends were paid to him tax free.

$7,500 for speaking at a medical conference in Perth.

he does not have any private patient hospital insurance. He is single.

You are required to:

Calculate Dr Smiths taxable income and taxes payable for the 2017-2018 income year. Your answer should reference relevant sections of the Income Tax Assessment Acts, relevant case law or rulings from the Australian Taxation Office. Show all calculations and provide reasons for your answers.