Question

During the current income year Rafael, a resident taxpayer, has a gross salary of $68,000 (PAYG tax withheld $15,100), a fully franked dividend of $2,000, an unfranked dividend of $1,000, and a 60% franked dividend of $900.

There are no deductions. Calculate Rafael’s taxable income and tax payable.

Answer 1

Taxable income will be,

Assessable income:

Gross salary                                                                              $68,000

Fully franked dividend                                                                2000

Franking credit ($2000*30/70)                                                     857

Unfranked dividend                                                                    1000

60% franked dividend                                                                  900

Franking credit ($900*60%*30/70)                                             231

Taxable income                                                                        72,988

Tax payable is;

Tax on $ 72,988                                                                       $ 15268.10

Less franking tax offset                                                                 1088.00

                                                                                                     14,180.10

Medicare levy (1.5% * 72, 988)                                                     1094.82

                                                                                                       15274.92

Less PAYG tax withheld                                                              15,100.00

Then tax payable will be                                                                   174.92