Jason is a sole trader in the architecture industry. Jason recently hired a 3D model designer, Sarah, to help him with the growing business.

At the end of the year Jason has provided the following information:

Sales revenue:	$ 280,000
Wages (Sarah):	$ 52,500
Other deductible expenses:	$ 112,500
Net income before tax:	$ 115,000

For the year ending 30 June 2021, Jason has no other sources of income or losses carried forward. He was covered by a private health insurance for the full year.

Jason's tax liability = (Marked as correct based on my answer in the assessment) Total Tax Liability:

Tax Payable + Medicare Levy - Small Business Tax Offset - Low and Middle Income Tax Offset

= $27,842 + $2,300 - $1,000 - $330

= $28,812

1. If Jason withdrew $5,500 from the net income before tax and then paid the amount to his own superannuation fund, what would be the tax impact of this transaction?

Show your workings.

If Jason withdrew $5,500 from his net income before tax and directed it to his superannuation fund, the tax impact would involve claiming this amount as a tax deduction initially. Subsequently, the $5,500 would be classified as a concessional contribution, subject to a 15% tax rate.

The tax amount would be calculated as follows: 15% x $5,500 = $825. This $825 would then be claimed as a tax deduction.

This was marked as incorrect on my assessment, with feedback only of "You didn't calculate the tax liability correctly." Does the total tax liability need to be recalculated perhaps?

Please assist!

Thank you~! <3