Part A

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Rachel is a resident for Australian tax purposes and has private health insurance. She holds 500 shares in ABC Pty. Ltd. The company paid a fully franked dividend of $20 per share on 15 June and has a corporate tax rate of 30%. Assume that during the current income year Rachel also has an annual salary of $50,000. What is Rachel's net tax payable or net refund for the current income year?

10 marks

You should note the following from the ATO's website (Australian Taxation Office. 2024. Tax rates Australian resident. https://www.ato.gov.au/tax-rates-and-codes/tax-rates-australian-residents):

"Taxable Income

Tax on this income

0-$18,200

Nil

$18,201-$45,000

19c for each $1 over $18,200

$45,001-$120,000

$5,092 plus 32.5c for each $1 over $45,000

$120,001-$180,000

$29,467 plus 37c for each $1 over $120,000

$180,001 and over

$51,667 plus 45c for each $1 over $180,000"