Question 1 (10 Marks)

Jahid (a mechanic) paid for the following items during the current tax year (2019-2020) and has approached you asking which of them are deductible from his salary income. He is a single tax resident for the year:

• Protective shoes and sunglasses with the cost of $600 all together
• Non-compulsory uniforms with the cost of $300
• Compulsory uniforms with the cost of $700

Explain in detail (using a table for all the items above) with relevant tax laws and cases.

Kindly use the four sections below for each case in your table.

1. Facts of the scenario
2. Relevant laws and cases
3. Application of laws and cases
4. Conclusion

10 marks

QUESTION 2 - (15 MARKS)

Calculate Total Assessable Income, Taxable Income, Tax Liability, Medicare Levy and Medicare Levy Surcharge, if applicable, for the tax payer (Jenny) with information below:

• Jenny is a resident single mom with one dependent child (7 years old) tax payer of Australia for the tax year 2019-2020
• Her Taxable Salary earned is $120,000 (Including tax withheld) having no private health insurance.
• Jenny has a student loan outstanding for his previous studies at Queensland University of $32,000.
• Jennys employer pays superannuation guarantee charge of 9.5% on top of her salary to her nominated fund.
• Jenny earned a passive income of $5,000 from the investments in shares in the same tax year.