Question

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Calculate the Income Tax and Medicare levy payable for the year ending 30 June 2017 on...

Calculate the Income Tax and Medicare levy payable for the year ending 30 June 2017 on the following amounts for a single Australian resident taxpayer who’s taxable income is $100,000. Please ignore Medicare levy surcharge.

Taxpayers, who earn over $26,668/year, pay a Medicare Levy of 2% of their taxable income.

Taxable income	Tax on this income
0 – $18,200	Nil
$18,201 – $37,000	19c for each $1 over $18,200
$37,001 – $80,000	$3,572 plus 32.5c for each $1 over $37,000
$80,001 – $180,000	$17,547 plus 37c for each $1 over $80,000
$180,001 and over	$54,547 plus 45c for each $1 over $180,000

Expert Solution

Calculation of Income Tax & Medicare Levy:-

Total Income $100000

Income Tax:

On First $18200 NIL

$18201-$37000 =$37000-$18200=$18800*19c

=357200cents/100=$3572

$37001-$80000 =$3572+$43000*32.5c

=$3572+1397500c/100

=$3572+$13975

=$17547

$80001-$100000 =$17547+$20000*37c

=$17547+740000c/100

=$17547+$7400

=$24947

Income Tax $24947

Add:- Medicare Levy@2% $2000

(Taxable Amount*2%)

($100000*2%=$2000)

Tax $26947

ekkarill92 answered 1 year ago

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