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.

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