Emma Louise Johnson lives at 85 Overton Way, Leederville, 6978, with her husband Robert David Johnson....

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Emma Louise Johnson lives at 85 Overton Way, Leederville, 6978, with her husband Robert David Johnson. The couple bought the house in 2020, financing it with a loan from the Commonwealth Bank, and they are currently paying off their mortgage. Emma's tax file number is 974 928 674 and her date of birth is 2 June 1997. Her contact phone number is 0412 345678. Robert's tax file number is 967 584 791 and his date of birth is 27 February 1995. Emma works as a teacher at Seacrest High School. Robert is an IT manager. They currently have no children. Information provided by Emma for the preparation of her 2022 tax return A Emma's payment summary for the year ended 30 June 2022 shows the following information: Payer: Department of Education (ABN 81 485 759 863) Salary Total tax withheld Reportable employer superannuation contributions $95,287 $23,400 $6,000 Robert's taxable income is $138,000. He has reportable superannuation contributions of $9,000 and a reportable fringe benefits amount of $3,200. B Emma provides you with receipts for the following items, which she is seeking to claim as deductions. Her work at the school includes time spent assisting with physical education classes and coaching the Year 7 and 8 netball teams. Teacher Registration Board of WA - annual fee (paid 22/02/22) Gym membership - 12 months (paid 02/07/21) Cross-trainer shoes (for sports days) Sports clothes Sunscreen expenses Hats C Emma has receipts for the following donations during the year: Princess Margaret Hospital Amnesty International The Royal Australasian College of Surgeons $250 $75 $30 $90 $780 $245 $130 $28 $22 She also gave $100 to a struggling pensioner living in her street, and estimated that she spent a further $100 on buskers throughout the year. D Emma and Robert have an investment property located at 180 Montrose Way, Morley, which is rented out to a long-term tenant. Emma and Robert have engaged Professionals Property Managers to manage the property on their behalf. The fees paid to the property managers include things like collecting the rent, conducting regular property inspections, and arranging any necessary maintenance work. The following items relate to the rental property during the financial year: Rent received ($380 per week) Property management fees (Professionals Property Managers) Council rates Water service charges Landlord insurance Interest paid on mortgage Pest control costs $19,760 $1,575 $1,260 $1,230 $1,162 $18,264 $1,400 Repairs and maintenance $2,030 The pest control costs were incurred when termites were discovered in the front yard and underneath the floorboards in main bedroom of the house. The repairs and maintenance expenditure included two items: (i) cost paid to a plumber to fix a leak underneath the bathroom sink ($430); and (ii) cost paid to a tradesman to replace of the front wooden picket fence that was damaged by termites with a Colorbond steel fence ($1,600). E In addition to their mortgage-related accounts at the Commonwealth Bank, Emma and Robert have a joint bank account at Westpac Bank. The details are as follows: k: Westpac Bank No: 831-292 Account No: 34965721 Account Name: R.D. & E.L. Johnson During the financial year, the account earned gross interest of $360.00. As Emma and Robert had not notified the bank of their tax file numbers, tax of $169.20 was withheld by the bank. If Emma is due to receive a tax refund this year, she would like it to be paid into the Westpac bank account. F During the year, Emma sold some of her shares through an online broker. The following table summarises the number of shares sold and the selling price: Company Marri Corporation Ltd Date sold 27 March 2022 No of shares sold Selling price per share 1,000 $9.00 Coral Corporation Ltd Coral Corporation Ltd 13 October 2021 3 May 2022 400 $14.00 200 $13.00 Emma had purchased 2,000 shares in Marri Corporation Ltd on 12 March 2012 for $4.50 per share. Brokerage fees amounted to $29.95. Emma had purchased 700 shares in Coral Corporation Ltd on 22 May 2016 at a cost of $15 per share. Brokerage amounted to $32.55. Brokerage for each sales transaction was $29.95. G Emma received two dividend payments from her shareholding in Marri Corporation Ltd during the year: a final fully franked dividend of 32 cents per share (paid on 14 September 2021), and an interim dividend of 26 cents per share franked to 80% (paid on 15 March 2022). Coral Corporation Ltd paid no dividends. Neither company is a base rate entity. H Emma paid private health insurance premiums totalling $1,440 for the year to HXF Insurance. Extract from Emma's private health insurance statement: Emma has not elected to receive any entitlement to a private health insurance tax offset in the form of reduced premiums throughout the year. I In October 2021, Emma paid a registered tax agent $240 to prepare and lodge her 2021 income tax return. Your premiums eligible Health insurer ID Membership number for Australian Government rebate Your Australian Government rebate received Benefit code Other adult beneficiaries for the policy B HXF C R258137 J $1,080 K $0 L 30 B HXF R258137 J $360 K so L 31 Step 1: Step 2: Sample income tax calculation Assessable income Salary WithHeld PAYG Derived Rent Net capital gain Received Div from share hold of company Franking Credit Benefit from being Beneficiary of family trust Deduction Training Depreication Repair Investment property Accountant fee Franking credit offset in relation of the partly franked dividend he received Calculate assessable income Salary: s6-5 ITAA97 $0 Rent: s 6-5 ITAA97 $0 Medicare Levy (Full 2% levy if taxable income exceed 29,206) 0.02 0(Salary + Rent Net Cap gain + Benefit from Trust) Net capital gain: s 102-5 ITAA97 0 Dividend: $44(1) ITAA36 $0 Franking Credit: s 207-20 ITAA97 $0 Medicare Levy Surcharge (assuming his income for surcharge purposes was 190,000 or Taxable income + FBT + Trust paid) Trust amount: s 97 ITAA36 $0 Surcharge rate at which more than 140,000 Total assessable income $0 Calculate deductions Self-education seminar: s 8-1 ITAA97 Computer depreciation: s 40-25 ITAA97 HELP loan assuming he has 20,000 HELP debt Repairs: $25-10 ITAA97 Tax-related expenses: s 25-5 ITAA97 Total deductions $0 Step 3: Calculate taxable income (step 1 - Step 2) $0 Step 4: Calculate basic income tax liability on $190,000 of 0.45 taxable income at the 2021/22 as its resident 51667 individual tax rates 180000 (51,667 + 45% on excess over 180,000) Step 5: Step 6: Step 7: Step 8: Step 9: Calculate tax offsets Franking credit tax offset: s 207-20 ITAA97 Total tax offsets Calculate income tax liability after substracting tax offsets (Step 4-Step 5) Add Medicare Levy Subtract credit for PAYG withheld by employer Calculate total outstanding tax liability (Step 6+Step 7-Step 8) 22 222 Repayment income (Taxable income + Total Net investment loss + Reportable FBT + Exempt foreign income + Reportable Super Contribution Rate derived from his repayment income category Required to pay Carried forward to next financial year Emma Louise Johnson lives at 85 Overton Way, Leederville, 6978, with her husband Robert David Johnson. The couple bought the house in 2020, financing it with a loan from the Commonwealth Bank, and they are currently paying off their mortgage. Emma's tax file number is 974 928 674 and her date of birth is 2 June 1997. Her contact phone number is 0412 345678. Robert's tax file number is 967 584 791 and his date of birth is 27 February 1995. Emma works as a teacher at Seacrest High School. Robert is an IT manager. They currently have no children. Information provided by Emma for the preparation of her 2022 tax return A Emma's payment summary for the year ended 30 June 2022 shows the following information: Payer: Department of Education (ABN 81 485 759 863) Salary Total tax withheld Reportable employer superannuation contributions $95,287 $23,400 $6,000 Robert's taxable income is $138,000. He has reportable superannuation contributions of $9,000 and a reportable fringe benefits amount of $3,200. B Emma provides you with receipts for the following items, which she is seeking to claim as deductions. Her work at the school includes time spent assisting with physical education classes and coaching the Year 7 and 8 netball teams. Teacher Registration Board of WA - annual fee (paid 22/02/22) Gym membership - 12 months (paid 02/07/21) Cross-trainer shoes (for sports days) Sports clothes Sunscreen expenses Hats C Emma has receipts for the following donations during the year: Princess Margaret Hospital Amnesty International The Royal Australasian College of Surgeons $250 $75 $30 $90 $780 $245 $130 $28 $22 She also gave $100 to a struggling pensioner living in her street, and estimated that she spent a further $100 on buskers throughout the year. D Emma and Robert have an investment property located at 180 Montrose Way, Morley, which is rented out to a long-term tenant. Emma and Robert have engaged Professionals Property Managers to manage the property on their behalf. The fees paid to the property managers include things like collecting the rent, conducting regular property inspections, and arranging any necessary maintenance work. The following items relate to the rental property during the financial year: Rent received ($380 per week) Property management fees (Professionals Property Managers) Council rates Water service charges Landlord insurance Interest paid on mortgage Pest control costs $19,760 $1,575 $1,260 $1,230 $1,162 $18,264 $1,400 Repairs and maintenance $2,030 The pest control costs were incurred when termites were discovered in the front yard and underneath the floorboards in main bedroom of the house. The repairs and maintenance expenditure included two items: (i) cost paid to a plumber to fix a leak underneath the bathroom sink ($430); and (ii) cost paid to a tradesman to replace of the front wooden picket fence that was damaged by termites with a Colorbond steel fence ($1,600). E In addition to their mortgage-related accounts at the Commonwealth Bank, Emma and Robert have a joint bank account at Westpac Bank. The details are as follows: k: Westpac Bank No: 831-292 Account No: 34965721 Account Name: R.D. & E.L. Johnson During the financial year, the account earned gross interest of $360.00. As Emma and Robert had not notified the bank of their tax file numbers, tax of $169.20 was withheld by the bank. If Emma is due to receive a tax refund this year, she would like it to be paid into the Westpac bank account. F During the year, Emma sold some of her shares through an online broker. The following table summarises the number of shares sold and the selling price: Company Marri Corporation Ltd Date sold 27 March 2022 No of shares sold Selling price per share 1,000 $9.00 Coral Corporation Ltd Coral Corporation Ltd 13 October 2021 3 May 2022 400 $14.00 200 $13.00 Emma had purchased 2,000 shares in Marri Corporation Ltd on 12 March 2012 for $4.50 per share. Brokerage fees amounted to $29.95. Emma had purchased 700 shares in Coral Corporation Ltd on 22 May 2016 at a cost of $15 per share. Brokerage amounted to $32.55. Brokerage for each sales transaction was $29.95. G Emma received two dividend payments from her shareholding in Marri Corporation Ltd during the year: a final fully franked dividend of 32 cents per share (paid on 14 September 2021), and an interim dividend of 26 cents per share franked to 80% (paid on 15 March 2022). Coral Corporation Ltd paid no dividends. Neither company is a base rate entity. H Emma paid private health insurance premiums totalling $1,440 for the year to HXF Insurance. Extract from Emma's private health insurance statement: Emma has not elected to receive any entitlement to a private health insurance tax offset in the form of reduced premiums throughout the year. I In October 2021, Emma paid a registered tax agent $240 to prepare and lodge her 2021 income tax return. Your premiums eligible Health insurer ID Membership number for Australian Government rebate Your Australian Government rebate received Benefit code Other adult beneficiaries for the policy B HXF C R258137 J $1,080 K $0 L 30 B HXF R258137 J $360 K so L 31 Step 1: Step 2: Sample income tax calculation Assessable income Salary WithHeld PAYG Derived Rent Net capital gain Received Div from share hold of company Franking Credit Benefit from being Beneficiary of family trust Deduction Training Depreication Repair Investment property Accountant fee Franking credit offset in relation of the partly franked dividend he received Calculate assessable income Salary: s6-5 ITAA97 $0 Rent: s 6-5 ITAA97 $0 Medicare Levy (Full 2% levy if taxable income exceed 29,206) 0.02 0(Salary + Rent Net Cap gain + Benefit from Trust) Net capital gain: s 102-5 ITAA97 0 Dividend: $44(1) ITAA36 $0 Franking Credit: s 207-20 ITAA97 $0 Medicare Levy Surcharge (assuming his income for surcharge purposes was 190,000 or Taxable income + FBT + Trust paid) Trust amount: s 97 ITAA36 $0 Surcharge rate at which more than 140,000 Total assessable income $0 Calculate deductions Self-education seminar: s 8-1 ITAA97 Computer depreciation: s 40-25 ITAA97 HELP loan assuming he has 20,000 HELP debt Repairs: $25-10 ITAA97 Tax-related expenses: s 25-5 ITAA97 Total deductions $0 Step 3: Calculate taxable income (step 1 - Step 2) $0 Step 4: Calculate basic income tax liability on $190,000 of 0.45 taxable income at the 2021/22 as its resident 51667 individual tax rates 180000 (51,667 + 45% on excess over 180,000) Step 5: Step 6: Step 7: Step 8: Step 9: Calculate tax offsets Franking credit tax offset: s 207-20 ITAA97 Total tax offsets Calculate income tax liability after substracting tax offsets (Step 4-Step 5) Add Medicare Levy Subtract credit for PAYG withheld by employer Calculate total outstanding tax liability (Step 6+Step 7-Step 8) 22 222 Repayment income (Taxable income + Total Net investment loss + Reportable FBT + Exempt foreign income + Reportable Super Contribution Rate derived from his repayment income category Required to pay Carried forward to next financial year