Q19.11.15

(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. Calculate Meghans taxable income and

Particular	Amount $	Amount $
Income stream benefit from taxed superannuation fund	$17000
Gross wages	$22000
Fully franking dividends	$7000
Total taxable income		$46,000

b)Tax payable for 2017/2018 :

Taxable income is $46,000

Tax on taxable income = 3,572 + 32.5% * ($46,000 - 37,000) = 6,497

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

Less : superannuation tax offset = 2,550

Less : Privet health insurance tax offset = 3000 * 25.934% = 778.02

Less : 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 = 1218.02

Working on Lump sum tax offset :

Tax on taxable income = 3,572 + 32.5% * ($46,000 - 37,000) = 6,497

Less : Lump sum tax offset = 15% * 17,000 = 2,550

Total = 3947

my working for both parts can you check if they are right answered or wrong