TAXATION LAW- AUSTRALIA

QUESTION 2 (10 MARKS) Anushka (an Australian Tax resident) works as an employee for a child care centre, Brilliant Kids Pty Ltd, on a permanent part-time basis while she runs her business as a day carer for her own customers. Meanwhile, she invested some of her extra cash in some shares on the ASX and in an Australian private company. Listed below is the summary of her earnings for the year ended 30 June 2020. Particulars Net Salary Received from Brilliant Kids for the year (Tax paid by company to ATO during the year is $29,000) $ 81,000 Net Business Profit as a sole trader (Day Carer) 30,000 Allowable Deductions on Employment (Uniforms, Laundry, Shoes) 5,000 Fully Franked Dividend Unfranked Dividend from a private company 7,000 1 200 Required: Calculate Anushka's taxable income and net tax payable (Ignore Medicare Levy and Medicare Levy Surcharge if any). (Please use the following table to complete your response to this question in the spaces provided) Answer Particulars Net Salary Received Add Back Tax Paid Net Business Profit Fully Franked Dividend Add Back Franking Credit Unfranked Dividend Assessable Income (Allowable Deductions) Taxable income Tax Payable Less Refundable Tax Offsets PAYG Withholding Franking Credits Net Tax Payable Total Marks Marks 0.5 mark 0.5 mark 0.5 mark 0.5 mark 1 mark 0.5 mark 1 mark 0.5 mark 1 mark 2 marks 0.5 mark 0.5 mark 1 mark 10 marks