Q1

(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:

a. Calculate Meghan's taxable income and

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

a) This is my answer for part a and its right answer

Income stream benefit from taxed superannuation fund

$17000

Gross wages

$22000

Fully franking dividends

$7000

Total taxable income

$46000

b)Tax payable for 2017/18 suppose tax rate is 30% :

Taxable income is $46,000

Tax on taxable income = 3,572 + 32.5% * ($46,000 - 37,000) =6497

Add : Medicare levy = 2% * $46,000= 920

Add : superannuation tax offset = I don't know how to work this part

Privet health insurance tax offset = 3000 * 21.612% = 648.36

Franking tax offset = 2100

Less : PAYG tax withheld = $1,500

Less : low tax income offset = 445 -(1.5%* (46,000-37,000)) = 310

Net tax payable =

Working on Lump sum tax offset :

Tax on taxable income = 3,572 + 32.5% * ($46,000 - 37,000) =6497

Less : Tax wages = 0+19%*(22,000 -18,200) = 722

Less : Lump sum tax offset this part I haven't finished because I go struggle on calculating the Lump sum tax offset