Question
Q5.3.5 (Taxable income from Australian and foreign sources) Yvette Jankic, a resident single taxpayer aged 31, worked in New Zealand from 1 July 2017 until
Q5.3.5
(Taxable income from Australian and foreign sources)
Yvette Jankic, a resident single taxpayer aged 31, worked in New Zealand from 1 July 2017 until 15 November 2017 and has provided the following information for the 2017/18 tax year:
Receipts
$
Interest (net of TFN tax withheld $490)
510
Interest from United Kingdom (net of withholding tax $300)
2,700
Dividend from the U.S. state of Georgia (net of withholding tax $2,100)
3,900
Gross salary - Australian employment (PAYG tax $5,285 withheld)
21,000
Reportable fringe benefit as per PAYG Summary
6,252
Net salary - New Zealand employment (tax withheld $2,540)
12,650
Bonus from Australian Employer for exceptional performance
2,000
Payments
$
Interest and Dividend deductions relating to United Kingdom and Georgia investments
250
Work-related deductions relating to Australian employment
300
Note - Yvette does not have private health insurance.
a.Calculate Yvette's taxable income for the 2017/18 tax year.
Interest (Australia)$1,000
Interest (United Kingdom)$3,000
Dividend (USA)$6,000
Gross Salary - Australia$21,000
Gross Salary - New Zealand$15,190
Bonus from Australian Employer$2,000
Assessable Income$48,190
(Reportable Fringe Benefit is not included)
Less Deductions :
- Interest and Dividend Reductions from UK and USA$250
- Work related deductions relating to Aust. employment$300
Total deduction is$550
Total Taxable Income$47,640
Can you check if i done the both parts correct
b.Calculate Yvette's net tax payable or refundable for the 2017/18 tax year.
Tax payable is:
Tax on $47,640 ($3,572 + 32.5% x ($47,640 - $37,000)$ 7,030
Less: Low-Income Tax Offset ($445 - 1.5% x ($47,640 - $37,000))$285.40
$ 6,744.60
Add: Medicare Levy - 2% * $47,640$952.80
$ 7,697.40
Less: PAYG instalments tax withheld $5,285
Net TFN tax withheld Withholding (Tax on Australian Interest) $490
Foreign Income Tax Offset - limit$4,940
$10,715.00
Tax Refundable($ 3,017.60)
*Foreign Income Tax Offset
Tax on $47,640 ($3,572 + 32.5% x ($47,640 - $37,000)$7,030
Less Tax on $23,700 (19% x ($23,700 - $18,200)$1,045
$5,985
However as Total Foreign Tax Paid is:
Withholding Tax on UK Interest is $300
Withholding Tax on USA Dividend is $2,100
Tax on New Zealand Employment is $2,540
Total Foreign Tax Paid$4,940
So we can only claim this amount as Foreign Income Tax Offset = ($4,940)
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