With reference to relevant legislation and/or case law, for Nisha, Jo and Miguel determine their:

1. assessable income,
2. allowable deductions
3. taxable income
4. tax assessed and
5. 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