Question 1:

Explain the meaning of the following terms and, if possible, identify them in the 1997 Act:

1. gross income;
2. exempt income;
3. assessable income;
4. deductions;
5. taxable income;
6. basic income tax liability / gross tax payable;
7. tax offsets and rebates;
8. creditsi
9. net tax payable.

Question 2

Edward Smith, an Australian resident individual, received the following cash dividends:

• $246,720 (franked to 50%) from XYZ Ltd on 1 February 2019;
• $14,000 (unfranked) from ABC Ltd on 1 March 2019;
• $4,900 (fully franked) from DEF Ltd on 1 May 2019

Required:

What is his assessable income (rounded to the nearest dollar)?