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What interest can be claimed for Australian tax? Show working Interest Income 24 Rick maintains bank accounts at two different Australian banks. Rick has provided
What interest can be claimed for Australian tax? Show working
Interest Income 24 Rick maintains bank accounts at two different Australian banks. Rick has provided the following information in relation to interest he has earned during the 2019 income year: . Westpac online savings account (total gross interest received) 133.19 Bendigo Bank access account (net of 47% TFN withholding tax - see below) 36.97 Bendigo Bank term deposit (year-end interest accrued for one month - see below) 100.00 Rick opened his Bendigo Bank access account on 5 July 2018. When opening the bank account, Rick did not have his tax file number (TFN) with him. He subsequently forgot to provide the bank with his tax file number. Accordingly, the bank has deducted 47% (or $32.79) in TFN withholding tax in respect of interest paid on this account during the 2019 income year. The net remaining amount of $36.97 (representing 53% of the gross interest which was owing) was credited to his Bendigo Bank access account. Furthermore, on 1 June 2019, Rick invested $24,000 into a four-month term deposit earning 2.50% interest with Bendigo Bank with interest to be credited on maturity. Interest of $400 is expected to be credited to his bank account upon maturity on 30 September 2019. Rick has calculated that interest of $50 has accrued as owing to him as at 30 June 2019 in respect of this term deposit (being $200 total interest - 4 months) Interest Income 24 Rick maintains bank accounts at two different Australian banks. Rick has provided the following information in relation to interest he has earned during the 2019 income year: . Westpac online savings account (total gross interest received) 133.19 Bendigo Bank access account (net of 47% TFN withholding tax - see below) 36.97 Bendigo Bank term deposit (year-end interest accrued for one month - see below) 100.00 Rick opened his Bendigo Bank access account on 5 July 2018. When opening the bank account, Rick did not have his tax file number (TFN) with him. He subsequently forgot to provide the bank with his tax file number. Accordingly, the bank has deducted 47% (or $32.79) in TFN withholding tax in respect of interest paid on this account during the 2019 income year. The net remaining amount of $36.97 (representing 53% of the gross interest which was owing) was credited to his Bendigo Bank access account. Furthermore, on 1 June 2019, Rick invested $24,000 into a four-month term deposit earning 2.50% interest with Bendigo Bank with interest to be credited on maturity. Interest of $400 is expected to be credited to his bank account upon maturity on 30 September 2019. Rick has calculated that interest of $50 has accrued as owing to him as at 30 June 2019 in respect of this term deposit (being $200 total interest - 4 months)Step by Step Solution
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