Australian Taxation and Income Tax Calculations

The assignment provided is related to Australian taxation and income tax calculations. It includes a series of questions and calculations that require the application of various tax laws and regulations in Australia. The document provides detailed explanations and calculations for different scenarios, including taxable payments, Medicare levy, and total income tax payable. It also includes a sample report with specific numbers and calculations, which is likely used to illustrate the concepts and procedures for calculating taxes in Australia.

LAW

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
QUESTION 1...................................................................................................................................1
QUESTION 2...................................................................................................................................4
QUESTION 3...................................................................................................................................8
QUESTION 4...................................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Legislature and the legal authority of Australia has developed various
amendments and laws which in turn helps the individual and corporations in making
effective control over the monetary system. The Australian Taxation Office (ATO)
brings the most adequate and informative details relevant with taxation operations. In the
present report, there will be discussion based on the taxes levied over various individual
as per their income level, residential status same as with the corporations with several
conditions will be charged. Therefore, the appropriate taxes will be levied over the
income generated by them in the proposed period.
QUESTION 1
Measuring the tax payable by the tax practitioners excluding Medicare Levy
ATO has presented various taxable analysis measurement which in turn will be
helpful to the business so as to have appropriate increment in the sales and revenue of the
firm. Therefore, in the following listed table and analysis, there will be taxable treatment
for all the individuals and corporations which has generated the income. These revenues
will be measured and treated on the basis of level of income or taxable slab (Individual
income tax rates, 2018). The tax rates and surplus amount will be treated over the
expenditures made by such parties such as:
Particulars Amount (in $) Tax rate
Tax payable (in
$)
Australian resident $15000 Nil $0
Australian Non resident $15000 32.50% $5850
Australian Company $15000 27.50% $4125
Australian resident (a) $155000 37%+ 19822 $44982
Australian Non-resident (b) $155000 37%+28275 $53435
Australian Company $155000 27.5% $42625
Australian resident (c) $255000 45%+54232 $87982
Australian Non-resident (d) $255000 45%+62685 $96435
Australian Company $255000 27.50% $70125
Australian Company $100 27.50% $27.5

A. Australian resident:
An Australian resident is one with the income of $15000. There will be no
taxable rate is charged because the income level of the person is below 18200. Therefore,
it will be tax free as there will be charges against the income generated by that person
(Ross, Walker and Walker, 2017).
B. Non-residence in Australia:
The income generated by the non-residential Australian individual as 15000
which will be charged as 32.5% of the rate. Therefore, there has been fixed taxable rate
for the people who has earned the revenue as less than 87000, there will be charges for
32.5%. Moreover, here the payment of 5850 will be payable by that person.
C. Australian company:
Taxable treatment for Australian Company with the taxable income which has
been generated by them as 15000. Therefore, there will be charges over the income
generated by business on the rate of 27.5%. Thus, the firm is liable to make payment for
27.5% of taxes over its income such as 4125.
D. Australian resident:
Working (a) Amount (in $)
Australian resident 155000
Taxable slab 87001-180000
155000-87000
68000
Tax rate 37.00%
25160
Surplus 19822
Total tax payment 44982
There has been analysis over the income generated by an Australian resident
which has had gathered the revenue for $155000. Thus, it comes under the taxable slab

of 87001-180000 which will be charged for 37% and the surplus of 19822 will be added
over the variance amount form 87000. However, the total taxable payment has been
made by this individual as $44982.
E. Non-residence in Australia:
workings (b) Amount (in $)
Australian Non resident 155000
tax slab 87001-180000
155000-87000
68000
tax rate 37.00%
surplus 28275
total tax payable 53435
Income of 155000 of an Australian non-resident which will be treated under the
taxable slab facilitated by ATO. The income comes under categories of 87001-180000
on which 37% of rate and the surplus of 28275 will be charge d on the variance between
155000 and 87000. Thus, the taxable amount which is has to be payable by the person is
$53435.
F. Australian Company:
An Australian organisation as generated the income for 155000. It will be
charged for 27.5%. Therefore, the taxes which are needed to be payable by the firm is
42625. Moreover, it comes under taxable slab of above 150000 in base treaty entities.
Thus, the firm has to pay taxes on the rate of 27.5%.
G. Australian Resident:
Working (c) Amount (in $)
Australian resident 255000
tax slab 180001 and over
255000-180000
75000
tax rate 45.00%

33750
surplus 54232
total tax payable 87982
Revenue generated by an Australian Resident amounted to 255000 therefore, it
comes under the categories and the taxable slab of 180001 and over. Thus, there has been
taxable charges is on the rate of 45% and surplus of 54232. Moreover, the amount has
been treated and the taxes will be analysed here is for $87982 which will be payable over
such generated income (Datt, Nienaber and Tran-Nam, 2017).
H. Australian non-resident:
workings (d) Amount (in $)
Australian Non resident 255000
Taxable slab 180001 and over
255000-180000
75000
Tax rate 45.00%
Surplus 62685
Total tax payable 96435
Taxable treatment over the income generated by the non-resident in Australia is
amounted to $255000. Therefore, it comes under the taxable slab of 180001 and above,
rated for 45% and the surplus amount of $62685. Similarly, the taxes has been charged
and treated against the revenue generated by such individual. Thus, there will be
payment for the taxes such as $96435.
I. Australian Company:
An Australian company has had gathered the revenue for 255000 which will be
charged over the tax rate for 27.5%. Moreover, the taxes which has been payable by the
fir is amounted to $70125.
J. Australian Small business entity:

The income generated by the Australian Company ids amounted to $100 will be
charge in the basis of tax rates such as 27.5%. Therefore, there has been payment for the
taxes over such gathers income as 27.5.
QUESTION 2
Taxable treatment over the income generated by the individuals or corporation
which are residents or non-residents in Australia. It will include the Medicare levy
surcharge over their income and the necessary adjustments will be made (Stewart, 2017).
Therefore, to analyse the income tax payable by such practitioners are as follows:
A. Australian Resident:
Particulars Details Amount (in $)
Australian resident 18000
Taxable slab 0-18200
Tax rate nil
Medicare Levy 0.00%
Income tax payable 0
Income earned by the individual is amounted to 18000 which is below 18200.
Therefore, there will not be any charges for taxes over the income. Similarly, there will
not bring benefits for Medicare levy (Wu and Simmons, 2017).
B. Australian resident with senior tax offset:
Particulars Amount (in $)
Australian resident 32000
senior tax offset 3900
C. Australian resident:
Particulars Details Details Amount (in $)
Income 45000
Taxable slab 37001-87000

45000-37000 8000
Tax rate 32.50% 2600
Surplus 3572
Taxable income 6172
Medicare Levy 2.00% Nil 900
Income tax payable 7072
The revenue of an Australian resident is for 45000 which will be charged as to
analyse the tax. Therefore, it comes under the category of 37001- 87000 rated for 32.5%
will have a surplus amount such as 3572. The Medicare levy has been surcharged over
the income generated by the person as 2% of the income that is 900. Moreover, the
income tax which has been payable the individual is amounted to $7072.
D. Australian non -resident for tax purpose
Particulars Details Details Amount (in $)
Income 45000
Taxable slab 0-87000
Tax rate 32.50% 0 14625
Surplus 0
Taxable income 0
Medicare Levy Nil 0
Income tax payable 14625
E. Australian Company:
Particulars Details Details Amount (in $)
Income 2500000
Taxable slab 150000 and over
2500000-150000
2350000
Tax rate 30.00%

Income tax payable 705000
F. Australian resident holding private health insurance:
Particulars Details Details Amount (in $)
Income 110000
Taxable slab 87001-180000
110000-87000 23000
Tax rate 37.00% 8510
Surplus 19822
Taxable income 28332
Medicare Levy (Health insurance ) 2.00% Nil
Income tax payable 28332
G. Australian resident with no private health insurance:
Particulars Details Details
Amount (in
$)
Income 110000
Taxable slab 87001-180000
110000-87000 23000
Tax rate 37.00% 8510
Surplus 19822
Taxable income 28332
Add: Medicare Levy 1.25% 110000*1.25% 1375
Income tax payable 29707
H. Australian resident with holding private health insurance of 90 days
Particulars Details Details Amount (in $)
Income 150000
Taxable slab 87001-180000

150000-87000 63000
Tax rate 37.00% 23310
Surplus 19822
Taxable income 43132
Medicare Levy 1.50% 2250
Income tax payable 45382
I. Australian residents Victor ad Jackie
Particulars Details Details
Victo
r
(in $) Details Details
Jackie
(in $)
Income
11000
0 75000
Taxable slab
87001-
180000
37001-
87000
110000-
87000 23000
75000-
37000 38000
Tax rate 37.00% 8510 32.50% 12350
Surplus 19822 3572
Taxable income 28332 15922
Medicare Levy 1.25%
110000
*1.25% 1375 0.00% nil 1500
Income tax payable 29707 17422
On the basis of above measurements and analysis, it can be said that the income
generated by Victors and Jackie over the period is amounted as 110000 and 75000.
Moreover, here Jackie is not liable to make payment to the Medicare Levy as there are
special remedies assigned to female employees in Australia (Comans, Moretto and
Byrnes, 2017). Thus, the taxable payable which has to be payable by them is amounted
for 29707 from Victor and 17422 for Jackie.

J. Recommendation for the couples in relation with having appropriate analysis
over Medicare levy
In order to make satisfactory taxable payments with consideration of the
Medicare levy, there are several thresholds which will be assistive to the individuals in
analysing the taxable income payments needed to be made by them.
Illustration 1: Medicare levy threshold
(Source: Comans, Moretto and Byrnes, 2017)
QUESTION 3
Income tax payable of Rob Details Details
Particulars Amount (in $)
Salary 32000
Bank Interest received 150
Clothing 450
PYAG 2600
Particulars Details Details Amount (in

$)
Salary 32000
Bank Interest received 150
Total income 32150
Allowable deduction
Special work clothing -450
Total taxable income 31700
Tax slab 18201-37000
32000-18200 13800
tax rate 32.50% 4485
Surplus 3572
Taxable payment 8057
Less: Already paid PYAG 2600
5457
Medicare Levy 2.00% 31700*2% 634
Total income tax payable 6091
QUESTION 4
Particulars rate Amount
Salary 68000
Fully Franked dividends 2000
Unranked dividends 1000 3000
60% of frank dividend 900
franked credit 1350 1350
Taxable income 72350
Tax slab 37001-87000
68000-37000 31000
tax rate 32.50% 10075
Surplus 3572