Tax Computation for Individual: Ways to Reduce Tax Liability

Individual taxation and accounting
Tax computation for individual
Individual taxation
Name of the author
University Name-

Table of Contents
INTRODUCTION......................................................................................................................1
TAX RATES FOR INDIVIDUALS FOR YEAR 2017 – 2018................................................1
TAX LIABILITY OF BRUCE LEE FOR YEAR 2017 - 2018.................................................3
WAYS TO REDUCE TAX LIABILITY...................................................................................4
CONCLUSION..........................................................................................................................6
REFERENCES...........................................................................................................................7

INTRODUCTION
With the changes in economic condition and ramified taxations policies, tax
calculation in Australia has been changing time to time. Every individual needs to assess their
tax amount on the basis of tax slab rate and taxation polices. In this report, computation of the
tax of the individual has been done on the basis of shared information and considering the tax
policies and rules. It deals with the practical scenario of the tax calculation in Australia for
individual and computation of the tax calculation of the individual have been made in tabular
form to strengthen the easy computation process.

TAX RATES FOR INDIVIDUALS FOR YEAR 2017 – 2018
The tax rate for the computation of the individual is done on the basis of slab rate given as
per the taxation rules and policies of the Australian laws and regulation. The taxation rules
and policies include Medicare levy which reflects the money levied at the rate of 2% on the
earned capital. It is designed to provide the access the health care services for the Australian
residents. It is analyzed that tax payers who are not indulged in having the private hospital
health insurance are required to mandatory to pay Medicare levy surcharge. It is considered
that the rate of Medicare levy surcharge for individual who are earning more than $ 140,001.
These individuals are required to pay Medicare levy surcharge on their earning at the rate of
1.5% (McGregor-Lowndes, and Crittall, 2017).
It is analyzed that forward tax losses of the individual of last year should be deducted from
the income which is chargeable to pay tax. In addition to this, it is further analysed that
PAYG happened to be computed on the account of individual should be reduced from the
total tax payable by the company.
Computation of the taxable income Tax charges on the Income
0 - $ 18,200 Nil
$ 18,201 - $ 37,000 19c for each $1 over $18,200
$ 37,001 - $ 87,000 $3,572 plus 32.5c for each $1 over $37,000
$ 87,001 - $ 1,80,000 $19,822 plus 37c for each $1 over $87,000
$ 1,80,001 and over $54,232 plus 45c for each $1 over $180,000