Q19.11.15

(Variousoffsets-refundableandnon-refundabletaxoffsets)

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

RECEIPTS

Income Stream Benefit from a taxed superannuationfund (no PAYG tax waswithheld) $17,000

Gross Wages (PAYG tax withheld$1,500) 22,000

Fully FrankedDividends 4,900

PAYMENTS

Private Health Insurance (reduced premium nottaken) 3,000

Meghan did not have anydeductions.

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 governmentpensions.

Required:

a.Calculate Meghan's taxable income and

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

a)

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) =6497

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

Add : superannuation tax offset =

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

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)= 6,497

Lump sum tax offset = 15% * 17,000 but I am not sure about this amount which is 17,000

part a is right answer and pat b only Lump sum tax offset = 15% * I have to time it by amount which is I am not sure if it right amount or not .

Show me your working of the question .