Taxation Law Assignment: Calculating Personal Tax Liability 2019

This document presents a detailed solution to a taxation law assignment focusing on calculating personal tax liability for the year ending June 30, 2019. The solution begins with a table outlining various revenue sources, categorizing them as assessable or non-assessable income, and providing corresponding amounts. Key income components include the sale of clothes (business income), rental income, and interest on bank deposits. Exempt income from part-time military service is also identified. The document then details deductible and non-deductible expenses, such as fully and partially franked dividends, body corporate fees, employee salaries, superannuation contributions, interest on investment loans, and various non-deductible expenses. The final section calculates the taxable income by subtracting total deductible expenses from assessable income, and then calculates the tax payable based on the provided threshold and tax rates. The assignment provides a comprehensive analysis of income, deductions, and tax calculation under relevant sections of the taxation law.

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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