Tax Laws: Computation of Income Tax, Medicare Levy and Taxable Income

This article provides solved examples and calculations for computation of income tax, medicare levy and taxable income in Australian tax laws. It also includes information on minimum threshold and allowable deductions. The article is relevant for students studying taxation law in Australia.

Running head: TAX LAWS
Tax Laws
Name of the Student
Name of the University
Authors Note
Course ID

1TAX LAWS
Table of Contents
Answer to question 1:.................................................................................................................2
Answer to question 2:.................................................................................................................4
Answer to question 3:.................................................................................................................5
Answer to question 4:.................................................................................................................6
Bibliography:..............................................................................................................................7

2TAX LAWS
Answer to question 1:
A
Particulars Amount ($)
Taxable Income $15000
Tax on taxable Income $0
From $0-$18200 Nil
Total tax payable Nil
B
Particulars Amount ($)
Taxable Income 15000
Tax on taxable Income 4500
Tax rate @30%
Total tax payable 4500
C
Particulars Amount ($)
Taxable Income 155000
Tax on taxable Income
Upto $80000 17547
above $80000 to $155000 27435
Total Tax Payable 44,982.00$
D
Particulars Amount ($)
Taxable Income 155000
Tax on taxable Income 46500
Tax rate @30%
Total tax payable 46500
Computation of Income Tax Payable
For the Year Ended 30 June 2018
For the Year Ended 30 June 2018
Computation of Income Tax Payable
For the Year Ended 30 June 2018
Computation of Income Tax Payable
For the Year Ended 30 June 2018
Computation of Income Tax Payable

3TAX LAWS
E
Particulars Amount ($)
Taxable Income 255000
Tax on taxable Income
Upto $180000 54,547.00$
above $180000 33,435.00$
Total Tax Payable 87,982.00$
Computation of Income Tax Payable
For the Year Ended 30 June 2018
F
Particulars Amount ($)
Taxable Income 255000
Tax on taxable Income
Upto $180000 63,000.00$
above $180000 33,435.00$
Total Tax Payable 96,435.00$
G
Particulars Amount ($)
Taxable Income 255000
Tax on taxable Income
Up to $37,000 @15% 5550
$37000 and above @32.5% 70850
Total tax on taxable income 76400
Computation of Income Tax Payable
For the Year Ended 30 June 2018
Computation of Income Tax Payable
For the Year Ended 30 June 2018

4TAX LAWS
Answer to question 2:
A
For the year ended 30 June 2018
Particulars Amount ($)
Assessable Income 18,000.00$
Medicare Levy 0
Medicare Levy Surcharge 0
Medicare Levy and Surcharge 0
B
For the year ended 30 June 2018
Particulars Amount ($)
Assessable Income 32,000.00$
Medicare Levy 0
Medicare Levy Surcharge 0
Medicare Levy and Surcharge 0
C
For the year ended 30 June 2018
Particulars Amount ($)
Assessable Income 45,000.00$
Medicare Levy 0
Medicare Levy Surcharge 0
Medicare Levy and Surcharge 0
Computation of Medicare Levy and Medicare surcharge payable
Computation of Medicare Levy and Medicare surcharge payable
Computation of Medicare Levy and Medicare surcharge payable
E
For the year ended 30 June 2018
Particulars Amount ($)
Assessable Income 25,00,000.00$
Medicare Levy 0
Medicare Levy Surcharge 0
Medicare Levy and Surcharge 0
F
For the year ended 30 June 2018
Particulars Amount ($)
Assessable Income 1,50,000.00$
Medicare Levy 3,000.00
Medicare Levy Surcharge 2,250.00
Medicare Levy and Surcharge 5,250.00
Computation of Medicare Levy and Medicare surcharge payable
Computation of Medicare Levy and Medicare surcharge payable

5TAX LAWS
G
For the year ended 30 June 2018
Particulars Amount ($)
Assessable Income 1,10,000.00$
Medicare Levy 2,200.00
Medicare Levy Surcharge 1,100.00
Medicare Levy and Surcharge 3,300.00
H
Particulars Amount ($)
Minimum thershold (A)
Thershold increase per child 1,500.00$
Number of child after the first child 3.00$
Total increase in thershold (B) 4,500.00$
Total Minimum Thershold (A+B) 4,500.00$
Calcuation of Minimum thershold
Computation of Medicare Levy and Medicare surcharge payable
Answer to question 3:
Particulars Amount ($)
Assessable Income
Gross Salary 31000
Australian Sourced Interest Income 1150
Total Assessable Income 32150
Allowable Deductions
Deductions for Specific Clothing 450
Total Allowable Deductions 450
Total Taxable Income 31700
Tax on Taxable Income 2565
Add: Medicare levy 634
Less: PayG 2600
Tax payable 599
Calculation of Taxable Income
For the year ended 30 June 2018
In the books of Rob

6TAX LAWS
Answer to question 4:
Particulars Amount ($) Amount ($)
Assessable income
Gross salary 78000
Australian sourced dividend income:
Fully franked (net) 1400
Gross up for franking credits (2000 x 30/70) 600 2000
Unfranked Dividend 2000
Fully franked (net) 350
Gross up for franking credits (700 x 50/100) 350 700
Total Taxable Income 82700
Tax on taxable income 18424.5
Medicare levy 1654
Less: Franking credit 950
Less: PayG Witholding 16500
Tax payable 2628.5
Calculation of Taxable Income and Tax Payable
In the Books of Ricky
For the Year Ended 30 June 2018

7TAX LAWS
Bibliography:
Kenny, P., Blissenden, M. and Villios, S. 2018. Australian Tax.
McCouat, P. 2018. Australian master GST guide 2018.
Sadiq, K. 2018. Australian taxation law cases 2018. Pyrmont, NSW: Thomson Reuters.
Sadiq, K., Coleman, C., Hanegbi, R., Jogarajan, S., Krever, R., Obst, W., Teoh, J. and Ting,
A. 2018. Principles of taxation law.
Woellner, R., Barkoczy, S. and Murphy, S. 2018. Australian Taxation Law 2018 ebook 28e.
Melbourne: OUPANZ.
Woellner, R., Barkoczy, S., Murphy, S., Evans, C. and Pinto, D. 2018. Australian taxation
law.