Question

Q1

(Various offsets - refundable and non-refundable tax offsets)

Meghan Royal, is a resident taxpayer aged 57, had the following transactions for the 2017/18 tax year:

RECEIPTS
Income Stream Benefit from a taxed superannuation fund (no PAYG tax was withheld)	$ 17,000
Gross Wages (PAYG tax withheld $1,500)	22,000
Fully Franked Dividends	4,900
PAYMENTS
Private Health Insurance (reduced premium not taken)	3,000

Meghan did not have any deductions.Meghan also wholly maintained her father Phillip for the whole year. Phillip did not have any adjusted taxable income and was not eligible for any government pensions.

required :Net tax payable for the 2017/18 tax year.

Q2 (Tax related expenditure)

Required: For each of the following resident individual taxpayers, calculate the amount that they would be entitled to claim as a deduction for the 2017/18 tax year:

1) Daniel paid three PAYG tax instalments of $6,000 each in October 2017, January 2018 and April 2018.

2) On 24 August 2018, Wilson paid his tax agent a fee of $300 for preparing his 2017/18 income tax return during July 2018.

3) On 15 April 2018, Josh paid $13,600 in fringe benefits tax.

4) During the year, Krystal travelled a total of 400 kilometres in her 2,800cc Ford Falcon driving to her tax agent for meetings involving tax planning and attending to her income tax and fringe benefits tax returns. She did not use her car for any other work or business related trips during the year.

5) During the year, Krystal travelled a total of 400 kilometres in her 2,800cc Ford Falcon driving to her tax agent for meetings involving tax planning and attending to her income tax and fringe benefits tax returns. She did not use her car for any other work or business related trips during the year.

6) During the year, Krystal travelled a total of 400 kilometres in her 2,800cc Ford Falcon driving to her tax agent for meetings involving tax planning and attending to her income tax and fringe benefits tax returns. She did not use her car for any other work or business related trips during the year.

7) On 15 February 2018, Raelene paid $11,800 land tax on her business premises.

8) On 15 March 2018, Leonie paid $7,000 on her 2017 income tax assessment. This amount included $6,000 of income tax, $800 of penalties and $200 from the shortfall interest charge

Answer 1

Q1)

Statement showing calculation of Meghan's taxable income for the 2017/18 tax year.

Particulars	Amont in $	Amont in $	Comments
Income benefit from a taxed superannuation fund	17000		As per ATO, annuity which taxable is to be included in assessable income when received.
Gross wages	22000		As per ATO, employment income includes salary and wages which is deemed as assessable income.
Fully Franked Dividends	7000		Gross amount of fully Franked dividends, Franking.
			Credit=2100 (7000-4900)
Taxable income		46000

Calculation of Meghan Taxable Income 2017/2018	Amont in $	Amont in $
Assessable income:
Income stream Benefit		17000
Gross wages		22000
Australian Sorce Dividend Income:
Fully Franked dividend	4,900
Franking credit	2,100	7000
Total assessable income		46,000
Allowable Deduction
Private Health Insurance	3000
Total Allowable Desuctions		3000
Total taxable income		43000
Tax on Taxable income		5522
Medical Levy		860
Total tax payable		6,328

Q2)

(i) Caculation of deduction for the year ended 2017/2018

Instalment for October	6,000
Instalment for January	6,000
Instalment for April	6,000
Total Allowable Deductions	18,000

(ii) Calculation of deductions for the year ended 2017/2018

Payment to tax agent	300
Total allowable	300

(iii) Not allowed as deduction

(iv) Not permitted as deduction

(v) Not permitted as deduction

(vi) Not permitted as deduction

(vii) Calculation of deduction for the year ended 2017/2018

Particulars	Amount in $
Pament of Land Tax	13,600
Total allowable deductions	13,600

(viii) Calculation of deduction for the year ended 2017/2018

Particulars	Amount
Payment to solicitor	800
Shortfall interest charge	200
Total allowable deductions	1000