The firm has a new personal tax client, Mary Jones (Mary), who is a resident individual taxpayer During your initial meeting with Mary, you learn that she works for Musik Pty Ltd (Musik), an independent music promotion company For the income year ended 30 June 2022, Mary received the following sources of income Gross salary of $150,000 (excluding superannuation) from Musik Tax withheld on this income was $54,000 Cash prize of $300 from an instant lotto ticket Net foreign dividend received in cash of $3,500 Foreign taxes withheld on the dividend were $575 Net dividend of $7,000 received from her CBA shares held These dividends were franked at 100 Net dividend of $35,000 received from her AGL shares held These dividends were franked at 50 Mary sold ANZ shares for $6,000 on 1 March 2022 She purchased these shares on 5 May 2021 for $5,600 Mary sold BHP shares for $1,900 on 4 January 2022 She purchased the shares on 1 July 1984 for $600 Mary is the sole beneficiary of two unit trusts, Trust 1 Trust 2 Trust 1 has net income of $6,000 and Trust 2 has a net loss of $4,000 For the income year ended 30 June 2022, Mary incurred the following sources of expenses Interest paid on loan for personal residence of $16,000 Fees paid to her previous tax agent for the preparation of her 2021 income tax return of $1,500 Bank fees paid on paid in relation to foreign dividends received of $100 Work related memberships and subscriptions that relate directly to earning her assessable income of $1,200 Mary also incurred $500 of depreciation in the 2022 financial year for a laptop used 50 for work related purposes which was purchased on 31 May 2021 Using the above information calculate Mary's taxable income Once the taxable income has been calculated, calculate Mary's tax payable refundable for the 2022 financial year Consider any impact of the Medicare levy, the low income tax offset, and the low and middle income tax offset Taxable income ($) Tax payable ($) 0 18,200 Nil 18,201 45,000 Nil 19 of excess over $18,200 45,001 120,000 5,092 32 5 of excess over $45,000 120,001 180,000 29,467 37 of excess over $120,000 180,001 51,667 45 of excess over $180,000

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Posted on Nov 15, 2024

The firm has a new personal tax client, Mary Jones (Mary), who is a resident individual taxpayer.

During your initial meeting with Mary, you learn that she works for Musik Pty Ltd (Musik), an independent music promotion company.

For the income year ended 30 June 2022, Mary received the following sources of income:

Gross salary of $150,000 (excluding superannuation) from Musik. Tax withheld on this income was $54,000
Cash prize of $300 from an instant lotto ticket.
Net foreign dividend received in cash of $3,500. Foreign taxes withheld on the dividend were $575
Net dividend of $7,000 received from her CBA shares held. These dividends were franked at 100%.
Net dividend of $35,000 received from her AGL shares held. These dividends were franked at 50%.
Mary sold ANZ shares for $6,000 on 1 March 2022. She purchased these shares on 5 May 2021 for $5,600.
Mary sold BHP shares for $1,900 on 4 January 2022. She purchased the shares on 1 July 1984 for $600.
Mary is the sole beneficiary of two-unit trusts, Trust 1 & Trust 2. Trust 1 has net income of $6,000 and Trust 2 has a net loss of $4,000.

For the income year ended 30 June 2022, Mary incurred the following sources of expenses:

Interest paid on loan for personal residence of $16,000.
Fees paid to her previous tax agent for the preparation of her 2021 income tax return of $1,500.
Bank fees paid on paid in relation to foreign dividends received of $100.
Work related memberships and subscriptions that relate directly to earning her assessable income of $1,200.
Mary also incurred $500 of depreciation in the 2022 financial year for a laptop used 50% for work related purposes which was purchased on 31 May 2021.

Using the above information calculate Mary's taxable income.
Once the taxable income has been calculated, calculate Mary's tax payable/refundable for the 2022 financial year. Consider any impact of the Medicare levy, the low-income tax offset, and the low- and middle-income tax offset.