Q1

1. On 10 August 2017, Dennis paid $100 to Australia Post to lodge his income tax return via Tax Pack Express.

2. Daniel paid three PAYG tax instalments of $6,000 each in October 2017, January 2018 and April 2018.

3. On 24 August 2018, Wilson paid his tax agent a fee of $300 for preparing his 2017/18 income tax return during July 2018.

4. On 5 October 2017, Hope paid her cousin who is studying to be an accountant $200 to prepare her 2016/17 income taxreturn.

5. During the year, Jacqueline paid a total of $42,000 in payroll tax.

6. On 15 April 2018, Josh paid $13,600 in fringe benefits tax.

7. During the year, Krystal travelled a total of 400 kilometres in her 2,800cc Ford Falcon driving to her tax agent for meetings involving tax planning and attending to her income tax and fringe benefits tax returns. She did not use her car for any other work or business related trips during the year.

8. On 15 February 2018, Raelene paid $11,800 land tax on her business premises.

1. On 27 January 2018, Dirk paid $18,900 in NSW land tax on his familys holiday house. He did not use this property for business or producing rental income.

10. On 1 August 2017, Troy paid his solicitor $700 to prepare a submission to the Administrative Appeals Tribunal relating to his 2014 income tax assessment which Troy was disputing.

k. On 15 March 2018, Leonie paid $7,000 on her 2017 income tax assessment. This amount included $6,000 of income tax, $800 of penalties and $200 from the shortfall interest charge

Required: For each of the following resident individual taxpayers, calculate the amount that they would be entitled to claim as a deduction for the 2017/18 tax year:

how much can be claimed as deduction in each case of first question ( working out )

Referring specifice deductions under section 8-5

tax related expense

repairs

borrowing expense

eligibility to clam

superannuation contributions

This is my answer for the first question :

a) solution: Cost of managing tax affair can be claimed as deduction. Hence $100 can be claimed in respect of express post (b) Solution: Amount of PAYG tax instalment of $18000 will be reduced from tax payable and can be deducible from income. (c) Solution: TAX PREPARATION FEE IS ALLOWED AS DEDUCTION. Hence, such fee of $300 can be claimed as deduction (d) Solution: No deduction can be claimed in respect of tuition fee on behalf of cousion. (e) Solution: Payroll tax is not deductible to individual tax payers. (f) Solution: No deduction can be claimed by Josh in respect of Fringe Benefit tax. (g) Solution: No deduction can be claimed by individual tax payer in respect of car expenses used for business purposes. (h). Solution: Deduction in respect of land tax on business premises can be claimed from business income by individual tax payer. Hence $11800 can be claimed. (i) solution In the given case, No rental income has been generated and hence deduction in respect of NSW land tax cannot be claimed. (j) Solution: No deduction can be claimed by individual for solicitation fee. (k) Solution: No deduction can be claimed in respect of penalty. Accordingly deduction of $6200 can be claimed.

Q2

(Various offsets - refundable and non-refundable tax offsets)

Meghan Royal, is a resident taxpayer aged 57, had the following transactions for the 2017/18 tax year:

RECEIPTS
Income Stream Benefit from a taxed superannuation fund (no PAYG tax was withheld)	$ 17,000
Gross Wages (PAYG tax withheld $1,500)	22,000
Fully Franked Dividends	4,900
PAYMENTS
Private Health Insurance (reduced premium not taken)	3,000

Meghan did not have any deductions.

Meghan also wholly maintained her father Phillip for the whole year. Phillip did not have any adjusted taxable income and was not eligible for any government pensions.

Required:

1. Net tax payable for the 2017/18 tax year.

Referring beneficially tax offset

relatable benefit	Beneficiary offset calculation
37,000	15% * ( rebatable benefit 6000 )
Over 37000	15% *( rebatable benefit 6000 ) +15% * (rebatable benefit 37000)