Notes
1. Susan collects stamps and sold one on ebay for $400 in the relevant year. She has not ever sold any other stamps
2. Susan also has shares in BHP under the dividend reinvestment plan. She was paid $4000 in fully franked dividends.
3. The car loan was taken out on 21/3/21. The loan is for 6 years
Question 5 (20 marks) Consider the information for the 2020/21 income year for Susan Black a resident Australian individual office worker $ Amount Item Gross Wages Clothing Allowance Melbourne Cup Winnings Reportable Fringe Benefit Award from softball team as most valuable player Child Maintenance payments from ex spouse Personal injury Accident compensation Loss of income insurance payments Loan from bank to buy car Sale of stamp - see note 1 45 000 1 000 10 000 5 000 250 12 500 25 000 5 000 45 000 400 $ Amount Item Work related deductions Loan application fee - car Interest on car loan Interest on investment loan for BHP shares Donation to Liberal Party Nice outfit to wear to work meetings Vet bills for sick cat Doctor's fees for sick certificates Tax agent fee for 2020/21 year paid on 9/12/21 350 415 800 1 250 2 500 3 000 1 750 240 570 Required Complete the following table for Susan and determine which items are assessable and which are deductible with reference to the relevant legislation and or case law principles (15 marks) Item Assessable? Deductible? Explanation Gross Wages Clothing Allowance Melbourne Cup Winnings Reportable Fringe Benefit Award from softball team as most valuable player Child Maintenance payments from ex spouse Personal injury Accident compensation Loss of income insurance payments Loan from bank to buy car Sale of stamp Work related deductions Loan application fee-car Interest on car loan Interest on investment loan for BHP shares Donation to Liberal Party Nice outfit to wear to work meetings Vet bills for sick cat Doctor's fees for sick certificates Tax agent fee for 2020/21 year paid on 9/12/21 Total Calculate the balance of Susan's assessment (5 marks) Assessable income Minus Allowable deductions = Taxable income Tax payable on taxable income Minus non refundable tax offsets - Net tax payable Plus Medicare Levy 2% Minus refundable tax offsets = Total amount of tax payable Minus Tax Credits (PAYG tax paid) = Refund Due or Amount Owing Question 5 (20 marks) Consider the information for the 2020/21 income year for Susan Black a resident Australian individual office worker $ Amount Item Gross Wages Clothing Allowance Melbourne Cup Winnings Reportable Fringe Benefit Award from softball team as most valuable player Child Maintenance payments from ex spouse Personal injury Accident compensation Loss of income insurance payments Loan from bank to buy car Sale of stamp - see note 1 45 000 1 000 10 000 5 000 250 12 500 25 000 5 000 45 000 400 $ Amount Item Work related deductions Loan application fee - car Interest on car loan Interest on investment loan for BHP shares Donation to Liberal Party Nice outfit to wear to work meetings Vet bills for sick cat Doctor's fees for sick certificates Tax agent fee for 2020/21 year paid on 9/12/21 350 415 800 1 250 2 500 3 000 1 750 240 570 Required Complete the following table for Susan and determine which items are assessable and which are deductible with reference to the relevant legislation and or case law principles (15 marks) Item Assessable? Deductible? Explanation Gross Wages Clothing Allowance Melbourne Cup Winnings Reportable Fringe Benefit Award from softball team as most valuable player Child Maintenance payments from ex spouse Personal injury Accident compensation Loss of income insurance payments Loan from bank to buy car Sale of stamp Work related deductions Loan application fee-car Interest on car loan Interest on investment loan for BHP shares Donation to Liberal Party Nice outfit to wear to work meetings Vet bills for sick cat Doctor's fees for sick certificates Tax agent fee for 2020/21 year paid on 9/12/21 Total Calculate the balance of Susan's assessment (5 marks) Assessable income Minus Allowable deductions = Taxable income Tax payable on taxable income Minus non refundable tax offsets - Net tax payable Plus Medicare Levy 2% Minus refundable tax offsets = Total amount of tax payable Minus Tax Credits (PAYG tax paid) = Refund Due or Amount Owing
