Question
With reference to relevant legislation and/or case law , for Nisha, Jo and Miguel determine their: assessable income, allowable deductions taxable income tax assessed and
With reference to relevant legislation and/or case law, for Nisha, Jo and Miguel determine their:
- assessable income,
- allowable deductions
- taxable income
- tax assessed and
- balance of the assessment, including Medicare Levy.
Show all workings and your legal analysis determining which amounts are assessable and which expenses are deductible. All taxpayers have adequate private health insurance. All are residents of Australia for tax purposes.
Item | Nisha (Plumber) | Jo (Computer programmer) | Miguel (Chef) |
Salary | $ 34 000 | $ 72 000 | $ 61 000 |
Franked dividends | $9000 (100% franked) | $10 000 (70% franked) | $5000 (15% franked) |
Purchase of cooking knives | $ 650 | ||
Purchase of plumbing tools | $ 400 | $ 800 | |
Everyday clothes for office wear | $ 1 200 | ||
Trade journals specific to occupations | $ 180 | $ 190 | $ 220 |
Purchase of books on computer programming | $ 500 | $ 260 | |
Lottery winnings | $ 40 500 | $ 280 | $ 30 300 |
Registered tax agents fee for preparation of tax return | $ 200 | $ 500 | $ 300 |
Inheritance from grandmother | $ 45 000 | ||
Costs of course in plumbing | $ 620 | $620 | |
Uniforms for work | $ 800 | ||
Donations to charity | $ 50 | $ 130 | $ 80 |
Protective clothing | $ 630 | ||
University fees Computer course | $ 800 | $ 800 | |
Interest on bank account | $ 25 | $ 330 | $ 44 |
Rent from an investment property | $ 27 500 | ||
Car expenses to travel to work | $ 600 | $ 500 | $ 400 |
Investment property expenses | $ 18 000 | ||
Rent paid on home apartment | $ 5 200 | $ 6 240 | $ 6 760 |
Holiday costs | $ 2 000 | $ 2 200 | $ 2 800 |
PAYG credits | $3 600 | $ 21 600 | $18 700 |
Appendix 1
Use the following templates to structure your analysis in questions 4, 5, 6 as required
Assessable income
Item | Yes | No | Legislative basis and explanation |
Tax deduction
Item | Yes | No | Legislative basis and explanation |
Tax calculation assistance
Item | Taxpayer | Taxpayer | Taxpayer |
Assessable income | |||
Allowable deductions | |||
Taxable income | |||
Non refundable tax offsets | |||
Medicare Levy | |||
Total Tax and Medicare Levy | |||
PAYG credits | |||
Other credits | |||
Balance of the assessment |
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