Personal Tax Liability of Year End 30 June 2019

The assignment provides a detailed table of contents and calculations for determining personal tax liability, including assessable income from various sources such as business, rental income, interest on bank deposits, and exempt income. Deductions such as franked dividends, private health fund refunds, and expenses related to income-producing property are also considered. The taxable income is then calculated by subtracting deductible expenses from assessable income, and the final tax payable is determined based on a 45% tax rate.

TAXATION LAW

TABLE OF CONTENTS
PERSONAL TAX LIABILITY OF YEAR END 30 JUNE 2019...................................................1

PERSONAL TAX LIABILITY OF YEAR END 30 JUNE 2019
Revenue
Non
assessable Assessable Total
Sale of clothes (ordinary income from business
/assessable income/ under section 6-5) 298000 298000
Rental income from an income producing investment
(ordinary income from property/ assessable income/
under section 6-5)) 17000 17000
Interest on Bank deposits (ordinary income from
property/ assessable income/ section 6-5)) 1000 1000
Part time military service (Exempt income/ not assessable
income/under section 51-33) 2000 2000
2000 316000 318000
Deductions Amount
Fully franked dividend (deductible/ section 46 Fa) 8000
Private health fund refunds (deductible/ section) 2000
50% franked dividend (deductible/ section 46 Fa) 6000
Expenses
Non
deductible Deductible Total
Body Corporate fees on income producing property
(General Deductions Section 8-1/deductible) 15000 15000
Part time employee salary (General Deductions Section 8-
1/deductible) 25000 25000
Superannuation contribution for employee ( Employer
contributions deductible /section 290-60) 2000 2000
Interest on money borrowed to purchase the income 5000 5000
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producing investment apartment (deductible/ Mortgage
for property bought /section 25-30)
Insurance and land tax for the investment property (non-
deductible/section 25-75) 3000 3000
Fees paid to a registered Tax Agent (deductible/tax-
related expense/section 25-5) 1100 1100
New item of plant with an estimated life of 10 years
(non-deductible/capital nature/section8-1) 30000 30000
Travel to and from work (non-deductible/private or
domestic nature/section 8-1) 1000 1000
Rates on his principal residence (non-deductible/section
85-15) 2000 2000
Doctors fees for Tom Lee (non-deductible/private/section
8-1) 5000 5000
doctors fees for tom's wife, Mary (non-deductible/
section) 3000 3000
Superannuation contribution for Tom Lee (deductible /
section 290-150) 6000 6000
44000 54100 98100
Particulars Amount
Assessable income 316000
Less deductible expenses 54100
Taxable income 261900
Threshold limit 180001
81899
45.00% 36854.55
Taxable payment (36854+54547) 91401.55
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