Determination of Mitchel’s Taxable Income

This assignment provides a computation of Mitchel's taxable income for the year ended 30 June 2018-19 in the subject of Taxation Law. It includes assessable income, allowable deductions, and the calculation of tax payable.

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
Determination of Mitchel’s Taxable Income.............................................................................2
Answer B:...................................................................................................................................2
Answer to C:..............................................................................................................................3
Answer to D:..............................................................................................................................4
Reference:..................................................................................................................................5

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Answer to question 1:
Determination of Mitchel’s Taxable Income
Computation of Taxable Income
In the books of Mitchel
For the year ended 30 June 2018-19
Particulars Amount ($) Amount ($)
Assessable Income
Gross salaries 31,050.00
Australian Sourced Interest Income
Term Deposit (5000 x 2.65%) x 10 months 1,325.00
Uniform Allowances 350.00
Total Assessable Income 32,725.00
Allowable Deductions
Work related travel expenses 1,157.00
Union fees 110.00
Depreciation for Tablet 299.67
Total Allowable Deductions 1,566.67
Total Taxable income 31,158.33
Answer B:
Computation of Taxable Income
In the books of Mitchel
For the year ended 30 June 2018-19
Particulars Amount ($) Amount ($)
Assessable Income
Gross salaries 31,050.00
Australian Sourced Interest Income
Term Deposit (5000 x 2.65%) x 10 months 1,325.00
Uniform Allowances 350.00
Total Assessable Income 32,725.00
Allowable Deductions
Work related travel expenses 1,157.00
Union fees 110.00
Depreciation for Tablet 299.67

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Total Allowable Deductions 1,566.67
Total Taxable income 31,158.33
Tax on Taxable Income 2,662.20
Add: Medicare Levy 623.17
Gross Total Tax Payable 3,285.37
Answer to C:
Computation of Taxable Income
In the books of Mitchel
For the year ended 30 June 2018-19
Particulars Amount ($) Amount ($)
Assessable Income
Gross salaries 31,050.00
Australian Sourced Interest Income
Term Deposit (5000 x 2.65%) x 10 months 1,325.00
Uniform Allowances 350.00
Total Assessable Income 32,725.00
Allowable Deductions
Work related travel expenses 1,157.00
Union fees 110.00
Depreciation for Tablet 299.67
Total Allowable Deductions 1,566.67
Total Taxable income 31,158.33
Tax on Taxable Income 2,662.20
Add: Medicare Levy 623.17
Gross Total Tax Payable 3,285.37
Less: PayG withheld 8,694.00
Net Tax Refundable -5,408.63
As Mitchel has paid $189 per week as the PAYG tax instalment all through his
employment he will be entitled to refund of $5,408.63 from the ATO.

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Answer to D:
Computation of Taxable Income
In the books of Mitchel
For the year ended 30 June 2019-20
Particulars Amount ($) Amount ($)
Assessable Income
Gross salaries
Wages for Day Time 12,420.00
Wages for Night Time 20,958.75
Australian Sourced Interest Income
Term Deposit (5000 x 2.65%) x 10 months 1,325.00
Uniform Allowances 350.00
Total Assessable Income 35,053.75
Allowable Deductions
Work related travel expenses 1,157.00
Union fees 110.00
Depreciation for Tablet 299.67
Total Allowable Deductions 1,566.67
Total Taxable income 33,487.08
Tax on Taxable Income 2,662.20
Add: Medicare Levy 669.74
Gross Total Tax Payable 3,331.94
Less: PayG withheld 8,694.00
Net Tax Refundable -5,362.06
Tax differences:
Percentage of Tax Difference 2019 2020 (% Tax Diff)
Gross Taxes Payable 3,285.37 3,331.94 1.42%

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Reference:
Barkoczy, S., 2016. Foundations of taxation law 2016. OUP Catalogue.
Sadiq, K., 2019. Australian Taxation Law Cases 2019. Thomson Reuters.