Assessable Income - Computation of Tax, Residency Test, and Tax Liability

Assessable Income

Table of Contents
TASK...............................................................................................................................................3
1. Discuss the process of Royal Assent.......................................................................................3
2.Explain the source income and its implications.......................................................................3
3. Computation of Tax................................................................................................................3
4.Calcultion of basic tax laibility, medicare levy and any surcharge..........................................4
5. check the residency test of the following cases......................................................................7
6. From the following items sort list the items and Calculate taxable income of Ned's.............7
7. Calculate the outstanding tax laibility.....................................................................................8
8. Calculation of net tax payable of Penny.................................................................................8
REFERENCES................................................................................................................................9

TASK
1. Discuss the process of Royal Assent.
The process of Federal parliament that leads to receiving of Royal Assent of Tax
legislation. In a parliament there are two houses firstly the bill has to be passed from both the
houses then it needs to be approved by the queen. This approval makes the bill into an act of
parliament.The main role of the court is to decide the main aim of the situation and what is really
happened and how it can be solved within the court. It is important for the judge to decide and
find out whether the person has committed the crime or not . Also it is important to decide the
fair decision for the person . The taxation ruling system allows the commissioner to make the
binding ruling which is honour by the commissioner. In context of the Australian taxation ruling
it is important to provide the facts and figures in the court for the decision making by te
commissioner (Adebayo and et.al., 2021).
2.Explain the source income and its implications.
Income of every individual is taxed, before whichit is checked whether the person is
resident of the country or not (Tayal and Evers, 2018). Following are the criteria to check
whether the person is resident or not,
• The person has resides in the country for than half of the year.
• Interest of the person lies in the country of residence
• A person residing in the counrty for the purpose of employment and study.
3. Computation of Tax
Taxable Income Tax
0 - $18,200 Nil
$18,201 - $45,000 19 cents for each $1 over $18,200
$45,001 - $120,000 $5,092 plus 32.5 cents for each $1 over
$45,000
$120,001 - $180,000 $29,467 plus 37 cents for each $1 over
$120,000
$180,001 and above $51,667 plus 45 cents for each $1 over
$180,000