Taxation Calculations & Case Studies

This taxation assignment explores two key scenarios involving income tax in Australia. The first case examines the calculation of tax payable on an employment termination payment, outlining the tax-free component and the application of different tax rates. The second case presents a detailed analysis of taxable income, deductions, and the final tax payable for an individual based on their salary and dividend income. The assignment includes clear calculations and references relevant taxation laws.

Running head: TAXATION
Taxation
Name of the Student:
Name of the University:
Authors Note:

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Table of Contents
Case One..........................................................................................................................................1
Case Two.........................................................................................................................................2
Reference.........................................................................................................................................3

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Case One
Tax payable on employment termination Payment
Particulars Amount
Total Termination Payment $740,000
Tax free component of the payment (per July 1983) $51,980
Taxable Component $688,020
Tax on Taxable component
15% including Medicare levy on the first 175000 $28,875
45% including Medicare levy on the first 175000 $238,554
Tax Payable on Termination amount $267,429
Notes:
The employment termination payment prior to July 1983 is tax-free component. The ETP
limit for the year is $175000.
Case Two
Statement showing calculation of Taxable income
Particulars Amount Amount
Assessable Income
Salary $92,000.00
Dividend $3,820.00
Franking credit $1,637.00
Dividend (gross) $5,457.00
Total Assessable income (A) $97,457.00
Allowable Deduction
Deduction for earning salary $5,780.00
Taxable Income $91,677.00
Tax Payable (17547+(91677-80000)X37%) $21,867.49
Medicare Levy $1,375.16
Total Tax payable $23,242.65
Franking credit $1,637.00
PAYG $29,985.02

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Personal Tax offset $2,355.00
Total $33,977.02
Net Tax Payable /( Refundable) -$10,734.38

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Reference
Barkoczy, S., 2016. Foundations of Taxation Law 2016. OUP Catalogue.
Cao, L., Hosking, A., Kouparitsas, M., Mullaly, D., Rimmer, X., Shi, Q., Stark, W. and Wende,
S., 2015. Understanding the economy-wide efficiency and incidence of major Australian
taxes. Treasury WP, 1.

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