The expenditure and receipts for Jake Costanza for 2019/20 tax-year comprise the following:

Receipts: $

• Salary 192,000
• Car expenses reimbursed by the employer (cents per kilometre basis) 3,400
• Entertainment allowance from employer 2,000
• Employer paid holiday 5,000

Expenses: $

• Car expenses (using cents per kilometre rate) 3,200
• Entertainment expenses incurred on employers business 1,000
• Interest paid on bank loan used to buy shares in a listed company 750
• Donation made to the Arthritis Foundation 250
• Dental expenses on behalf of self and family 1,800
• Medical expenses on behalf of family net of any refund 8,200

Required:

Based on the above information prepare a statement of taxable income for Jake Costanza assuming he is a resident of Australia for 2019/20 tax year and calculate his tax payable including any Medicare Levy but ignoring any tax offsets. Discuss how you arrived at your answer referring to relevant legislation.