I need helpcalculating Alex and Rachel's after-tax income for the year ended June 30^th 2019.

Also, how can Alex and Rachel could reduce their tax liability through splitting their income?

Also, what is the effect this strategy would have had, if they had split income for the tax year ended 30 June 2019.

Name

Age

Gross annual salary

Employment

Alex William

50

$32,400

Alex took a break from the work for a year and has joined as Part time coach with local footy club on 1/1/2019.

Rachel William

52

$102,200

Architect, employed as commercial/ residential surveyor with a local firm

The William's only 16 years son attends a State Secondary College.

Asset and Liabilities

Assets (Ownership)

Purchase price $

Current valuation

$

Liability (Ownership)

Current valuation $

Home and Contents (Joint)

700,000

----

Mortgage

235,000

Cars (Joint)

Toyota Yaris: 17,000

BMW X1 58,000

----

Credit cards (Joint)

Includes the annual interest cost

6,500

Bank Account:

NAB Savings Account (Joint)

15,000 as on 1/7/2018

Investments:

WisdomTree (Australia and New Zealand) Debt Fund - (Rachel) 11,000

Dicker Data Ltd Shares 4,000 - (Rachel)12000

Galaxy Resources Limited Shares 7000- (Rachel) 15750

Superannuation- (Rachel) 400000

Superannuation- (Alex) 550000

Income

Income type (ownership)

Amount p.a.

Joint saving bank account of Alex and Rachel with NAB: Interest 1.5% p.a.

$440

WisdomTree (Australia and New Zealand) Debt Fund (Rachel)

$780

Dicker Data Ltd Shares- Dividend - (Rachel)

$1,470

+ $630 Imputation credit

Galaxy Resources Limited Dividend - (Rachel)

$910

+ $390 Imputation credit

The William couple would like to know their net earnings after paying tax for the year ended 30^th June 2019. They would also like advice on how to reduce their tax liability in the future.

10 months ago, Rachel invested in equity.She bought 4,000 shares of Dicker Data Ltd at $3.00 per share and 7,000 shares in Galaxy Resources Limited at $2.25 per share. While she is happy about her decision to purchase Dicker Data Ltd, she regrets purchasing Galaxy Resources Limited shares that has come down to $ 1.30 per share. She wants to sell her Dicker Data Ltd shares (expected sale price $7.00 per share) to lock in her profit and has come to you for advice.She does not expect any significant change in share price of both the firms in the coming 1 year.

Alex is concerned about his superannuation.He would like to know how much return his superannuation is making.He has scaled down his coaching job in recent year. He was aggressive investor at young age i.e. in initial years of job but with increasing age and less remaining years of work life he has redefine himself as a conservative investor and is stressed observing the frequent change in value of superannuation portfolio. In due course he intends to initiate phased retirement,whereby he continues working with a reduced workload, and eventually transition from full-time work to full-time retirement.

Alex and Rachel have decided to save additional money for their retirement. At the end of each year, they will invest any surplus money with 80% invested into Rachel's and 20% invested into Alex's investment. This is in line with Alex's intent to reduce his work in the coming years.

Expenses for year ended 30

^th

June 2019:

Itemised expenses per annum:

Travelling to and from work- $2,500 (Rachel) and $1,100 (Alex)

Australian Institute of Architects Membership Fees $1,060(Rachel)

Donations to registered Charity $1,750 (Alex)

Assets and Liabilities

Alex's Superannuation asset allocation

Investment

Asset Allocation

Performance p.a. after tax

Australian Shares

40%

3%

Cash & Fixed Interest

15%

1.4%

International Shares

35%

7%

Property

10%

3.10%