Question 1:

Craig, a journalist, is a resident individual Australian taxpayer who lives in Maryborough, which is located approximately 255 kilometres north of Brisbane.

Craig is married to Chantel who is also an Australian resident. They live together in their home in Maryborough. All of their children have grown up, left home and established their own lives.

Craig provides you with the following information in relation to his taxation affairs for the year ended 30 June 2022:

$

Gross salary (includes PAYG withholding tax of $20,624 deducted) 82,500

Interest income 620

Dividend - Billabong Limited (80% franked - taxed at 30%) 490

Tax agent fees paid to tax agent for preparing his tax return 678

Donations to endorsed DGRs 400

Craig also advises you that on 2 March 2022, he sold 600 Bluescope Steel Ltd shares for $12,400. He acquired these shares on 9 December 1991 for $6,200.

Craig also has capital losses carried forward of $1,600 in respect of the sale of 400 Sundance Resources Ltd shares in 2015.

Craigs wife, Chantel, has no taxable income and no adjusted taxable income whatsoever.

Craig and Chantel do not have private health insurance and Craig does not have any reportable fringe benefits and has not made any reportable employer superannuation contributions during the 2022 income year.

Required:

Calculate Craigs taxable income for the year ended 30 June 2022. Assume that Craig wishes to minimise his taxable income wherever possible.

(ii) Based on your answer to part (i), calculate Craig's tax payable/(tax refund) for the year ended 30 June 2022.

You will need to ascertain whether Craig qualifies for a zone tax offset for residing in Maryborough by referring to the zone tax offset facility on the ATO website.

The income tax rates for a resident individual for the year ended 30 June 2022 are as follows:

Resident Individual Tax Rates for 30 June 2022

Taxable Income	Tax Payable
$0 - $18,200	$Nil
$18,201 - $45,000	$Nil + 19% of excess over $18,200
$45,001 - $120,000	$5,092 + 32.5% of excess over $45,000
$120,001 - $180,000	$29,467 + 37% of excess over $120,000
$180,001 +	$51,667 + 45% of excess over $180,000