Question:

medicare levy: 2%

Medicare levy surcharge:

Tax rates:

Emma is a freelance graphic designer with an annual income of $85,000. She also has an additional $20,000 from a fixed income security investment she owns. Below are some key financial details for the 2022/23 tax year: - Freelance income: $85,000 - Investment income from a fixed income security: $20,000 - Deductible expenses: $10,000 for business equipment, $5,000 for business-related travel, and $2,000 for work clothes (non-deductible) - Capital gain from selling shares: $15,000 after taking into account any applicable concessions. - Capital loss carried forward from previous year: $3,000 - Private health insurance: None Q2 Part (a) What is Emma's taxable income for the 2022/23 financial year, and how much income tax will Sophie pay? Show your calculations of both taxable income and tax payable and include in your calculations where applicable, the Medicare Levy, the Medicare Levy Surcharge, Low Income Tax Offset. \begin{tabular}{|c|c|c|c|c|} \hline MLS rate & 0% & 1% & 1.25% & 1.5% \\ \hline Singles & $90,000 or less & \begin{tabular}{l} $90,001 \\ $105,000 \end{tabular} & \begin{tabular}{l} $105,001 \\ $140,000 \end{tabular} & \begin{tabular}{l} $140,001 or \\ more \end{tabular} \\ \hline Families * & \begin{tabular}{l} $180,000 or \\ less \end{tabular} & \begin{tabular}{l} $180,001 \\ $210,000 \end{tabular} & \begin{tabular}{l} $210,001 \\ $280,000 \end{tabular} & \begin{tabular}{l} $280,001 or \\ more \end{tabular} \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline Taxable income & Marginal Tox Rate & \\ \hline$0 to $18,200 & 08 & NH \\ \hline$18,20110$45,000 & 19%6 & $0+19% on excess over $18,200 \\ \hline$45,001 to $120,000 & 32.5% & $5,092+32,5% on excess ove $45,000 \\ \hline$120,001 to $180,000 & 3796 & $79,467+3796 on excess over $120,000 \\ \hline$180,001 and over & 458 & $51,667, 450 on excess over $180,000 \\ \hline \end{tabular}