(Variousoffsets-refundableandnon-refundabletaxoffsets)

Meghan Royal, is a resident taxpayer aged 57, had the following transactions for the 2017/18 taxyear:

RECEIPTS

Income Stream Benefit from a taxed superannuationfund

(no PAYG tax waswithheld)

$17,000

Gross Wages (PAYG tax withheld$1,500)

22,000

Fully FrankedDividends

4,900

PAYMENTS

Private Health Insurance (reduced premium nottaken)

3,000

Meghan did not have anydeductions.

Meghan also wholly maintained her father Phillip for the whole year. Phillip did not have any adjusted taxable income and was not eligible for any governmentpensions.

Required:

a.Calculate Meghan's taxable income and

b.Net tax payable for the 2017/18taxyear.

a)This is my answer for part a and its right answer

Income stream benefit from taxed superannuation fund$17000

Gross wages$22000

Fully franking dividends$7000

Total taxable income$46000

b) Net tax payable for the 2017/18taxyear.

Taxable income is$46,000

Tax on taxable income = 3,572 + 32.5% * ($46,000- 37,000) =6497

Add : Medicare levy= 2% *$46,000=920

Add : superannuation tax offset = I don't know how to work this part

Privet health insurance tax offset= 3000 * 21.612% = 648.36

Franking tax offset = 2100

Less :PAYG tax withheld =$1,500

Less : low tax income offset = 445 -(1.5%* (46,000-37,000)) =310

Net tax payable =

Working on Lump sum tax offset :

Tax on taxable income =3,572 + 32.5% * ($46,000- 37,000) =6497

Less : Tax wages=0+19%*(22,000-18,200)= 722

Less : Lump sum tax offset this part I haven't finished because I go struggle on calculating the Lump sum tax offset

Rebate Adjustment Factor (RAF) Since 1 April 2014 all private health insurance rebate percentages have been adjusted annually by a Rebate Adjustment Factor representing the ratio of the proportional increase in the consumer price index to the proportional average premium increase. The RAF is calculated by the Department of Health each year. The RAF's for the 2017/18 income year are as follows: Rebate Adjustment Factor (1 July 2017 to 31 March 2018) No Tier Tier 1 Tier 2 Tier 3 Aged under 65 25.934% 17.289% 8.644% 0% Aged 65-69 30.256% 21.612% 12.966% 0% Aged 70 or over 34.579% 25.934% 17.289% 0%