Taxation Law: Calculation of PayG Deductions, Superannuation Guarantee Obligation, Net Tax Payable, and Input Tax Credit

This article provides answers to questions related to Calculation of PayG Deductions, Superannuation Guarantee Obligation, Net Tax Payable, and Input Tax Credit. It also includes a detailed analysis of the topic and provides a summary of the content.

Running head: TAXATION LAW
Taxation Law
Name of the Student
Name of the University
Authors Note
Course ID

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Table of Contents
Answer to question 1:.................................................................................................................2
Answer to question 2:.................................................................................................................2
Answer to question 3:.................................................................................................................2
Answer to question 4:.................................................................................................................5
Answer to question 5:.................................................................................................................6
Reference List:.........................................................................................................................10

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Answer to question 1:
Calculation of PayG Deductions and Net Wages Payable
April
Payee's
Name
Annual
Salary
Gross Weekly
Salary
Tax
Withheld
Tax
Applicable
Net Weekly
Wages
Sarah
$
52,000.00
$
4,333.33
$
789.00
$
789.00
$
3,544.33
Ellie
$
18,720.00
$
1,560.00
$
4.00
$
4.00
$
1,556.00
Micheal
$
62,400.00
$
5,200.00
$
1,092.00
$
1,092.00
$
4,108.00
Lisa
$
28,600.00
$
2,383.33
$
208.00
$
208.00
$
2,175.33
Mitch
$
-
$
-
$
- Nil
Clintalle
$
220.00
$
-
$
- Nil
Total
$
2,093.00
$
11,383.67
Calculation of PayG Deductions and Net Wages Payable
May
Payee's
Name
Annual
Salary
Gross Monthly
Salary
Tax
Withheld
Tax
Applicable
Net Weekly
Wages
Sarah
$
52,000.00
$
4,333.33
$
789.00
$
789.00
$
3,544.33
Ellie
$
18,720.00
$
1,560.00
$
4.00
$
4.00
$
1,556.00
Micheal
$
62,400.00
$
5,200.00
$
1,092.00
$
1,092.00
$
4,108.00
Lisa
$
28,600.00
$
2,383.33
$
208.00
$
208.00
$
2,175.33
Mitch
$
-
$
-
$
- Nil
Clintalle
$
220.00
$
-
$
- Nil
Total
$
2,093.00
$
11,383.67
Calculation of PayG Deductions and Net Wages Payable
June
Payee's
Name
Annual
Salary
Gross Monthly
Salary
Tax
Withheld
Tax
Applicable
Net Weekly
Wages
Sarah $ $ $ $ $

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52,000.00 4,333.33 789.00 789.00 3,544.33
Ellie
$
18,720.00
$
1,560.00
$
4.00
$
4.00
$
1,556.00
Micheal
$
62,400.00
$
5,200.00
$
1,092.00
$
1,092.00
$
4,108.00
Lisa
$
28,600.00
$
2,383.33
$
208.00
$
208.00
$
2,175.33
Mitch
$
-
$
-
$
- Nil
Clintalle
$
220.00
$
-
$
- Nil
Total
$
2,093.00
$
11,383.67
Answer to question 2:
Calculation of Superannuation Guarantee Obligation
Payee's
Name Salary
Quarterly Times
Earnings Superannuation Guarantee
Sarah
$
52,000.00
$
13,000.00
$
1,350.00
Ellie
$
18,720.00
$
4,680.00
$
1,350.00
Micheal
$
62,400.00
$
15,600.00
$
1,350.00
Lisa
$
28,600.00
$
7,150.00
$
1,350.00
Mitch
$
1,500.00
$
1,500.00
$
1,350.00
Clintalle
$
3,190.00
$
3,190.00
$
1,350.00
Note: Superannuation guarantee of every employee is $450 for each month
Answer to question 3:
Computation of Net Tax Payable
Inclusiv
e of
GST
Type Input tax
supply
Particulars Amount
($)
Amount
($) Section Amou
nt ($)
Assessable Income:
Training Fees $
82,698.0
Input Taxed
Sales
$
8,269.80
Section 6-5
of ITAA 97
$
74,428

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0 .20
Share of Prize money from
Customer horses
$
44,000.0
0
Taxable
Supply
$
4,400.00 Section 6-5
of ITAA 97
$
39,600
.00
Prize money from
Broadmeadow Park
Owned Horse
$
16,500.0
0
Taxable
Supply
$
1,650.00
$
14,850
.00
Trophy from Brisbane Cup $
1,200.00
Taxable
Supply
$
120.00
$
1,080.
00
Trade-in of tractor
previously used on
property
$
18,000.0
0
Input Taxed
Sales
$
1,800.00
$
16,200
.00
Hey and Saddle blanket
donated to local pony club
$
100.00
GST Free
Supply
$
100.00
Total GST Input
$
1,62,498
.00
$
16,239.80
$
1,46,2
58.20
Total Assessable Income
$
1,30,0
18.40
Output
GST
Supply
Allowable Deduction:
Horse Feed $
8,800.00
Creditable
Acquisition
$
880.00 Section 8-1
of ITAA 97
$
7,920.
00
Cost of Goods Sold $
4,750.00
Creditable
Acquisition
$
475.00
$
4,275.
00
Veterinary Fees $
6,600.00
Payment
Consideratio
ns
$
660.00 Section 8-1
of ITAA 97
$
5,940.
00
Farrier $
5,500.00
Payment
Consideratio
ns
$
550.00 Section 8-1
of ITAA 97
$
4,950.
00
Accommodation for Staff
at race meeting
$
2,475.00
Payment
Consideratio
ns
$
247.50 Section 8-1
of ITAA 97
$
2,227.
50
Airfares for staff to attend
race meeting
$
5,346.00
Payment
Consideratio
ns
$
534.60 Section 8-1
of ITAA 97
$
4,811.
40
Bookkeeping Service $
2,640.00
Creditable
Acquisition
$
264.00
Section 8-1
of ITAA 97
$
2,376.

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00
First Aid course for Staff
members
$
880.00
Creditable
Acquisition
$
88.00
Section 8-1
of ITAA 97
$
792.00
Business loan repayment $
1,025.00
Financial
Supplies
$
102.50
Section 8-1
of ITAA 97
$
922.50
Total Allowable
Deduction
$
38,016.0
0
$
34,214
.40
Total GST Output $
3,801.60
Taxable Income
$
95,804
.00
Total GST Payable
$
12,438
.20
Assumptions:
a. The receipt of training fees will be considered as the input taxed sales
b. The amount received by through trade in tractor will be considered as input tax sales
c. The Hey and saddle would be regarded as the GST free supply
d. The expenses on cost of goods sold and horse feed would be regarded as the purchase
acquisition
e. Veterinary fees, farrier, accommodations cost on staff at race meeting and airfares for
staff would be regarded as the payment considerations
f. Bookkeeping and first aid course would be regarded as purchase acquisition
g. Business loan repayment would be regarded financial supplies
As it has been defined under the “section 6-5 of the Income tax assessment act
1997” income which an individual derives from the activities of business would be
considered as the taxable under. From the current circumstances it is noticed that
Broadmeadow park generated revenue from the training fees which would be considered for

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assessment under the “section 6-5 of the ITAA 1997”. It is noteworthy to denote that there
were other receipts that would be considered for assessment namely share of prize money,
trophy from Brisbane Cup and trade in tractor.
One of the important consideration in this regard is that receipts would be considered
for GST under the “GSTR act 1999” relating to the receipts of the taxable supplies.
Additionally, it is found that Broadmeadow has incurred an expenses that would be treated as
the allowable deductions under the under “section 8-1 of the ITAA 1997” (Robin 2017). A
business will be allowed to claim an allowable deductions relating to the expenditure that is
incurred by the company for their workers together with the contribution for the
superannuation made for the workers.
The business carried by the Broadmeadow is a company and according to the
guidelines of the Australian taxation office Broadmeadow shall be entitled to claim an
allowable deductions relating to the wages that the company pay to its workers. In addition to
this, Broadmeadow has incurred an expenditure relating to the superannuation expenditure on
its workers. As result of this, in accordance with the “section 8-1 of the ITAA 1997”
broadmeadow will be entitled to claim an allowable deduction for the expenditure incurred
on the superannuation fund of its workers.
As it has been defined under the “taxation ruling of 97/17” an important
consideration has been staed under the “section 32-5 of the ITAA 1997” regarding the non-
allowance of the deductions incurred on entertainment of food and meal for its customers in
the local restaurant. Furthermore, “division 32 of the ITAA 1997” provides a prohibition
concerning the deduction of the expenses that is associated on the entertainment of the
employees.

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According to the judgement stated in the case of “Bow and others v. Heatly (1960)
STL 311” the spending incurred on the meal would be treated as the non-allowable
deductions (Miller and Oats 2016). Additionally, the expenditure on entertainment of the
employees by broadmeadow would be treated as the fringe benefit under the “Fringe Benefit
Tax Assessment Act 1986” and it would be considered for Fringe benefit which would be
liable for Fringe Benefit Tax. Furthermore, in accordance with the “section 8-1 of the ITAA
1997” Jimmy would be able to claim an allowable deductions relating to the expenditure
incurred for its business activities and the GST would be considered payable in regard to the
GSTR act 1999.
Answer to question 4:
According to the “taxation ruling of GSTR 2008/1” an individual would be able to
claim the input tax credit given that the taxpayer has made creditable acquisition or
importation (Miller and Oats 2016). To make the creditable acquisition or importation the
person would be required to make the importation which is entirely or partially for creditable
purpose. The taxation ruling of GSTR 2008/1 defines that there are some factors that helps in
determining whether the acquisition is for importation or for acquisition relating to the
creditable purpose. As evident in the present situation it is noticed that Broadmeadow has
made creditable acquisition for which it would be entitled to claim the input tax credit.
The acquisition that is made by the Broadmeadow is at the time of carrying on of the
enterprise which was domestic in nature. Additionally, the importation that is made by the
Broadmeadow would be liable for claiming an input tax. The goods and service tax act 1999
provides that the usual entitlement of the input tax credit from making the creditable
acquisitions and creditable importations. As it is noticed that the expenses incurred by
Broadmeadow was for acquiring anything that was entirely or solely for the creditable
purpose and the supply made will be considered as the taxable supply. “Section 11-15 of the

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GSTR 2000” provides that an individual taxpayer acquires anything for the creditable
purpose up to the extent that the individual has acquired it in the course of carrying on of the
business enterprise.
As held in the case of “HP Mercantile Pty Ltd v Commissioner of Taxation” the
judgement of the court stated that under the legislative scheme the taxpayer would be entitled
to claim the input tax credit to make sure that the output tax payable by the taxpayer should
not be imposed on the value that includes tax payable (Robin 2017). Broadmedow Park under
the present situation would be able to claim an input tax credit for the acquisition that is made
by it relating to the supplies.
Table Representing Creditable Acquisition
Type
Particulars
Assessable Income:
Training Fees Input Taxed Sales
Share of Prize money from Customer horses Taxable Supply
Prize money from Broadmeadow Park Owned Horse Taxable Supply
Trophy from Brisbane Cup Taxable Supply
Trade-in of tractor previously used on property Input Taxed Sales
Hey and Saddle blanket donated to local pony club GST Free Supply
Total GST Input
Total Assessable Income
Allowable Deduction:
Horse Feed Creditable Acquisition
Cost of Goods Sold Creditable Acquisition
Veterinary Fees Payment Considerations
Farrier Payment Considerations
Accommodation for Staff at race meeting Payment Considerations
Airfares for staff to attend race meeting Payment Considerations
Bookkeeping Service Creditable Acquisition

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First Aid course for Staff members Creditable Acquisition
Business loan repayment Financial Supplies
Answer to question 5:
BLANK BAS
FIELDS
OPTION 1: Calculate GST & report quarterly SUMMARY
1A GST on Sales $-
14773
G1 Total Sales $-
162498
1C WET $-
Does G1 include GST Y/
N
1E LCT $-
G2 Export Sales $- 4 PAYG Withheld $-
G3 Other GST-Free Sales $- 5A PAYG income tax
instalment
$-
16790
G10 Capital Purchases $- 6A FBT instalment $-
G11 Non-capital Purchases $- 7C FTC over claim $-
8A $-
PAYG tax withheld
1B GST on purchases $-
W1 Total Salary & Wages $-2626 1D WET refundable $-
W2 Amount Withheld $-484 1F LCT refundable $-

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W4 No ABN $- 5B PAYG instalment credit $-
W3 Other amount $- 6B FBT credit $-
W5 total amounts withheld $-484 7D FTC credit $-
8B $-
OPTION 1: Pay a PAYG instalment amount
quarterly
PAYMENT OR REFUND
T7 $-
Is 8A more than 8B? YES
FBT INSTALMENT
Your payment amount $-
32047
F1 $-
F2 Est FBT for year $-
F3 Varied amount payable $-
F4 Variation Code

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Reference List:
Miller, A. and Oats, L., 2016. Principles of international taxation. Bloomsbury Publishing.
ROBIN, H., 2017. AUSTRALIAN TAXATION LAW 2017. OXFORD University Press.