Question

Eliza Jones, single & age 41, ceased to be an Australian resident on 14 March 2020 when she left Australia. She had derived a gross salary of $46,750 plus reportable superannuation benefits of $6000 provided by her employer. Timber Sales Pty Ltd ABN 33 667 224 953, where she worked as an administrative assistant. PAYG tax withheld during the year was $7200. She had no other income or deductions during the year and does not have private health cover.

Required:

Calculate Eliza's reduced tax threshold and tax payable for year ended 30 June 2020

Answer 1

Sol :

Computation of Tax Payable for the year ended 30June 2020

Gross salary = $46,750

Less : Superannuation contribution = $6,000

Taxable Income = $40,750

Income Tax Slabs for Individual are

Taxable income	Tax on this income
0 – $18,200	Nil
$18,201 – $37,000	19c for each $1 over $18,200
$37,001 – $90,000	$3,572 plus 32.5c for each $1 over $37,000
$90,001 – $180,000	$20,797 plus 37c for each $1 over $90,000
$180,001 and over	$54,097 plus 45c for each $1 over $180,000

Tax Liability = 18200*0%+(37000-18200)*19%+(40750-37000)*32.5%

= 0 + 3572 + 1218.75

= $4,790.75

Less :

PAYG = $7,200

Tax Refund = $2409.25

Notes :

1. PAYG instalments help you to avoid a large tax bill after you lodge your income tax return.

Reduced Threshold = PAYG - Refund amount

= $7,200-$,2409.25

= $4,790.75

To reduce the amounts withheld from your payments by lodging a PAYG withholding variation application.