Australian Taxation Law: Income Tax Calculations and Refunds (2018)

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TAXATION LAW
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Table of Contents
Introduction......................................................................................................................................3
Question 1....................................................................................................................................4
Question 2....................................................................................................................................5
Question3.....................................................................................................................................6
Conclusion.......................................................................................................................................7
References........................................................................................................................................8
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Introduction
The details consist to be in relation with the overall income of the individuals and other persons,
consisting of a calculation of overall taxes and considering to be equivalent to cover the aspects
as per the Australian regulations to be reflected by the tax regulations of Australia. And thus to
be considered to provide them each and every aspects of functions and thus the details to be
needed to evaluate the aspects in a well-defined manner and thus it covers defined objectives
with the relative income taxes provision and thus supports the specified aspects of overall
analysis.
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Question 1
Calculation of tax Expense in respect of various individuals for the year ended 30 June
2018.
(1). Since the details provided in respect of individual consider being less than $18200 and
considered to be an exemption limit as per Australian regulation and thus the tax expense to be
nil. No tax no Medicare levies.
(2). In case of Australian resident, whose income consists of $32000 and thus the net income tax
payable will be up to $18200 there is no tax liability and therefore on the balance tax rate should
be .19 cents. Thus the tax amount will be $2622.
(3). An Australian individual being a resident of Australia consists of taxable income of $
155000. Income tax payable will be referred to be 19822+ [.37*(155000-87000)] and therefore
the net tax payable is equal to $44982. Since there is a requirement to pay a Medicare levy @ 2%
on the Taxable income. Therefore, Medicare levy charge on the income will be $3100.
(4). An Australian company referred to be consists of income of $100, therefore income tax
payable to be .275*100 which is equal to $27.5.
(5). In the case of non-residents, there is no requirement to pay Medicare levy in case of non-
resident and thus the tax payable will be referred to be consists of $62685+.45*(255000-
180000). Therefore, net income tax payable will be $96435.
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Question 2
Calculation of net income tax payable :- Amount(in $)
salary income $32,000
bank interest $150
Less:- allowable deductions $450
Total Income $31,700
Total Tax Payable on $31700 $2,565
Less:- PAYG Deducted $2,600
Tax needed to be refunded $35
The tax needed to be refunded as the gross income is $31700, as the aspect is to cover the
specific factor to evaluate the refunded income and to provide the necessary details. Bank
interest is to be charged with taxes on the basis of income of the assessee, and thus it is to be
analyzed on the behalf of coverage of the aspects of overall analysis.
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Question3.
Total Taxable income:- Amount(in $)
Gross salary of Rafael $68,000
Fully franked dividend $2,000
Franking credit covering [$2000 *(30/70) $857
Unfranked dividend $1,000
Franked (60%) dividend $900
Franking credit Referred to be [$900*60%*(30/70) $231
Taxable income (Being round off) $72,988
Tax to be payable:-
Tax on $72988 $15,268
Medicare levy termed to be ($72988*2%) $1,460
Total $16,728
Less:- Franking Tax to be offset $1,088
Net tax to be payable $15,640
Less-PAYG Tax Withheld $15,100
Net balance tax to be payable $540
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Conclusion
The main idea to provide the differentiate data, needed to analyzed as per the aspects of rules and
regulations as per the Australian regulation. And thus it provides the specific calculation to
provides the tax payable and tax collected to identify and thus it seems to provide the specific
targets by describing the taxes needed to be payable through the coverage of specific factor. That
would evaluate during the scenario of the covering of factors and reflects the demand function of
the required provision.
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References
 Alstadsaeter, A. and Jacob, M., (2016). Dividend Taxes and Income Shifting. The
Scandinavian Journal of Economics, 118(4), pp.693-717.
 Ato.gov.au. (2019). Individual Income Tax Rates. [online] Available at:
<https://www.ato.gov.au/Rates/Individual-income-tax-rates/> [Accessed 22 January 2019].
 Celiac Disease Foundation. (2019). Tax Deductions | Celiac Disease Foundation. [online]
Available at: <https://celiac.org/gluten-free-living/federal-benefits/tax-deductions/>
[Accessed 22 January 2019].
 Gunter, S., (2018). Your biggest refund, guaranteed? Internet access, tax filing method, and
reported tax liability. International Tax and Public Finance.
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