Question 4 Jill is an Australian resident for tax purposes. She has assessable income of $500,000. She has deductions of $100,000 and franking credit offsets of $30,000. What is Jill's tax payable for the 2019-2020 income year? [We will deal with the franking credit offset later in the unit] Question 5 Linley is an Australian resident for income tax purposes. She has taxable income of $277,000. She has been provided with a receipt for an expense in the amount of $10,000. This expense will constitute a deduction. How much tax will Jacqueline save for the 2019-2020 income year? How much tax will she save if the $10,000 was an offset? Question 6 Acme Pty Ltd has determined that its assessable income for the year is $100,000 and it has deductions of $30,000. What is Acme's tax payable for the 2019-2020 income year? Assume that Acme's turnover is in excess of $50 million. Question 7 Calculate the following for the year ending 30 June 2019 on a taxable income of $15,000, $23,000 and $40,000 for a single Australian resident taxpayer who is not entitled to the seniors and pensioners tax offset: Income tax payable Low income rebate (s159N) and the low- and middle-income tax offset (s 61-105) Medicare levy Question 8 Calculate the Medicare levy surcharge payable (if any) for the year ending 30 June 2019 on the following taxable income amounts of a single Australian resident taxpayer who does not have private health insurance for the entire year: (i) $50,000 (ii) $100,000 Question 9 Following on from Question 5, Linley has a HELP debt of $25,000. How much of the HELP debt would she be required to repay for the 2019-2020 income year? Question 10 Part 1 Explain the meaning of: (a) Exempt income (b) Non-assessable non-exempt income (NANE). Give examples of each. Part II Fred Smith is a student at the University of Canberra. He is going to China to study for a semester as part of his degree. He has received a $15,000 scholarship from the University of Canberra to assist him with his expenses whilst in China. Is the scholarship exempt income? What other information is required for you to decide? What sections in the ITAA do you need to look at? (Hint: read section 11-15 of the ITAA 1997 and look for a type of income that relates to education. Then go to the section that provides for the exemption (section 51-10). Look for an item in the Table in section 51- 10 that relates to the facts in the question.) What is the item in the Table? Question 11 (brief discussion) (a) Why do taxpayers have to lodge a tax return? (b) What is an assessment? What is the Commissioner required to do when making an assessment? (c) How does the self-assessment system operate in Australia
