Question 2 - Calculating income tax payable Total marks -20 Calculate Elizabeth and Kane's total tax liability (including Medicare). Their financial situation is as follows: . . Elizabeth's salary is $170,000 p.a. In addition to this, her employer pays the superannuation guarantee contribution on her behalf. Kane earns $90,000 salary as well as a taxable allowance of $30,000. His employer pays superannuation guarantee on his salary (but not the taxable allowance). Kane salary sacrifices an additional $12,000 to superannuation Kane and Elizabeth both earn rent from a jointly owned investment property of $20,000 pa (combined) and have an interest only loan of $150,000 (combined) on this property at an interest rate of 5% p.a. Elizabeth owns an Australian share portfolio valued at $50,000, paying 4% dividends, which is 70% franked . . . . Kane owns a cash management account valued at $50,000 paying 5% interest Kane has income protection insurance owned personally (non-superannuation) with an annual premium of $3,000 owned and paid by him personally Kane has a gross, nominal capital gain of $7,000 from the sale of shares owned for 2 years (this is before any CGT discount). Elizabeth donated $2,000 to a charity, which is a tax-deductible gift. Elizabeth and Kane have private hospital insurance cover in place. . . Calculate the tax payable for each of Elizabeth and Kane. Your response should include calculations to show! . . Assessable income Deductions Taxable income thun Calculate the tax payable for each of Elizabeth and Kane. Your response should include calculations to show: . . Assessable income Deductions Taxable income Income tax payable Medicare levy Tax offsets Final income tax payable . . . . Round all figures to the nearest whole dollar Use the following table as a guide. You may need to add rows to complete your answer. Show your workings. Full marks will not be awarded if workings are not provided. Kane - Type answers in this column Elizabeth - Type answers in this column Income Salary Allowance Other income Dividends Salary Allowance Other income Dividends Imputation credits Capital gain Less Exempt Income Assessable Income Less: Deductions Work related expenses Disallowed deductions Taxable Income Income tax payable Less Tax Offsets Imputation credit Income Tax Payable Plus: Medicare Levy Plus: Medicare Levy Surcharge Total Income Tax Payable Question 2 - Calculating income tax payable Total marks -20 Calculate Elizabeth and Kane's total tax liability (including Medicare). Their financial situation is as follows: . . Elizabeth's salary is $170,000 p.a. In addition to this, her employer pays the superannuation guarantee contribution on her behalf. Kane earns $90,000 salary as well as a taxable allowance of $30,000. His employer pays superannuation guarantee on his salary (but not the taxable allowance). Kane salary sacrifices an additional $12,000 to superannuation Kane and Elizabeth both earn rent from a jointly owned investment property of $20,000 pa (combined) and have an interest only loan of $150,000 (combined) on this property at an interest rate of 5% p.a. Elizabeth owns an Australian share portfolio valued at $50,000, paying 4% dividends, which is 70% franked . . . . Kane owns a cash management account valued at $50,000 paying 5% interest Kane has income protection insurance owned personally (non-superannuation) with an annual premium of $3,000 owned and paid by him personally Kane has a gross, nominal capital gain of $7,000 from the sale of shares owned for 2 years (this is before any CGT discount). Elizabeth donated $2,000 to a charity, which is a tax-deductible gift. Elizabeth and Kane have private hospital insurance cover in place. . . Calculate the tax payable for each of Elizabeth and Kane. Your response should include calculations to show! . . Assessable income Deductions Taxable income thun Calculate the tax payable for each of Elizabeth and Kane. Your response should include calculations to show: . . Assessable income Deductions Taxable income Income tax payable Medicare levy Tax offsets Final income tax payable . . . . Round all figures to the nearest whole dollar Use the following table as a guide. You may need to add rows to complete your answer. Show your workings. Full marks will not be awarded if workings are not provided. Kane - Type answers in this column Elizabeth - Type answers in this column Income Salary Allowance Other income Dividends Salary Allowance Other income Dividends Imputation credits Capital gain Less Exempt Income Assessable Income Less: Deductions Work related expenses Disallowed deductions Taxable Income Income tax payable Less Tax Offsets Imputation credit Income Tax Payable Plus: Medicare Levy Plus: Medicare Levy Surcharge Total Income Tax Payable