Question 1: Which of the following is assessable income? Please justify your answer by referencing to Tax Law. (See slides of Session 2 and 3)

1. Salary and wages
2. Accommodation provided by employer that can be convertible to cash
3. Tips
4. Dividends
5. Personal gifts
6. Money received for giving up rights
7. Money received for winning an award
8. Refund from a shop for goods purchased and returned

Question 2

Frank is an accountant. He works for west union club and has received an annual salary of 80,000. He also earned a Christmas bonus of $2,000 In 2015/16 income year. During this year, he won a lotto of $200,000.

Required:

1. Determine the taxable income of Frank.
2. Calculate Tax payable (income tax and medicare levy (2% on total taxable income when taxable income is of $27,068 and over)