Question 2

Part a) Matilda is an Australian resident and has a taxable income of $65,000 for the 2018/19 financial year. What will be the nominal amount of tax payable for the 2018/19 financial year?

[4 marks]

Part b) Fitzroy Pty Ltd is an Australian company. During the 2018/19 financial year Fitzroy Pty Ltd had income of $4,000,000 and deductions of $500,000. What is the total tax payable for Fitzroy Pty Ltd for the 2018/19 financial year?

[4 marks]

Part c) Johnny Sack has assessable income of $80,000 in the 2018/19 financial year. He has $4,000 worth of deductions he can claim. By how much will the $4,000 worth of deductions reduce Johnnys nominal tax payable?

[4 marks]

Part d) Briefly explain PAYG withholding and who it applies to.