Michelle, a single nurse at the local hospital (with no dependants) received $105,000 in wages and a $5,000 fully franked dividend. She has work related expenses of $2,000 and is also undertaking a floristry course as she enjoys making floral arrangements for her home and friends. She paid $1,000 for this floristry course.

Michelle has no private health insurance.

Calculate the tax payable for Michelle.

Your response should include calculations to show:

Assessable income

Deductions

Taxable income

Income tax payable

Medicare levy

Tax offsets

Final income tax payable/refundable

Round all figures to the nearest whole dollar.

Use the following table as a guide. You may need to add rows to complete your answer.

Show your workings. Full marks will not be awarded if workings are not provided.

	Type your answers below
Income
Salary
Allowance
Other income
Dividends
Imputation credits
Capital gain
Less Exempt Income
Assessable Income
Less: Deductions
Work related expenses
Disallowed deductions
Taxable Income
Income tax payable
Less Tax Offsets
Imputation credit
Income Tax Payable
Plus: Medicare Levy
Plus: Medicare Levy Surcharge
Total Income Tax Payable