(ForeignPension)

Elizabeth Windsor is 59 years old. She is a resident taxpayer with private health insurance. She also received a government pension from the United Kingdom that is taxable in Australia but not in the United Kingdom. Elizabeth is subject to tax as an Australian residenttaxpayer but exempt from tax in the United Kingdom.

During the 2017/18 tax year, Elizabeth derived interest and unfranked dividends of$39,000 and also received $25,000 of pension.

Required:

a.Calculate Elizabeth's taxable income for the 2017/18 taxyear.

This is my answer for part a :

Receipt of Pension

$25000

Unfrank Dividend

$39000

Less deductibleamount- New Zealand pension

8% * $25,000= 2000

Total Taxable income

62000

b )Calculate Elizabeth's tax payable or refundable for the 2017/18 taxyear. I need help with this part

please show your working