Tax Law: Income Tax, Medicare Levy, and Financial Income Calculations

This document presents a comprehensive solution to a tax law assignment, focusing on various aspects of income tax and Medicare levy calculations. It includes detailed computations for different scenarios, such as calculating income tax for individuals, non-residents, and companies, using provided tax rates and deductions. The assignment also addresses the calculation of Medicare levy and Medicare levy surcharge, considering different income thresholds and residency statuses. Furthermore, it provides a breakdown of financial income, including franked and unfranked dividends, and calculates the final tax payable. The solution demonstrates a clear understanding of relevant tax laws and regulations, offering step-by-step calculations to arrive at the final tax liabilities.

Running head: TAX LAW
Tax Law
Name of the Student
Name of the University
Author Note

1
TAX LAW
Answer 1
Answer To question 1
Income Tax Calculation
Year ending 2017
A Payable Income Tax
Particulars Amount
Earned Income $18,000
Deductions Nil
Assessable Income
$
18,000.00
Tax Rate
Exempt Rate $18200 Exempted
Tax to be Paid Nil
b Payable Income Tax
Particulars Amount
Total Income $18,000
Deductions Nil
Total Assessed Income $18,000
Non-Resident Tax
Rate till $80000 32.50%
Tax to be Paid
$
5,850.00
c Payable Income Tax
Particulars Amount
Total Income 18000
Deductions Nil
Total Assessed Income
$
18,000.00
Australian Company Tax 30%
Tax to be Paid
$
5,400.00
d Payable Income Tax
Particulars Amount
Total Income 145000

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TAX LAW
Deductions 0
Total Assessed Income
$
145,000.00
Tax Rate for Resident
Till $87000 ()
$
17,547.00
Above $87000-145000 $58,000
Tax on $58000 @ 37% $23,735
Tax to be Paid
$
41,282.00
e Payable Income Tax
Particulars Amount
Total Income
$
145,000.00
Deductions Nil
Total Assessed Income
$
145,000.00
Tax for Non-residents
Till $87000
$
26,000.00
From $87001 to $180000
$
23,735.00
Tax to be Paid
$
49,735.00
f Payable Income Tax
Particulars Amount
Total Income of the
Company
$
145,000.00
Total Deductions Nil
Total Assessed Income
$
145,000.00
Tax for Company 30%
Tax rate 30%
$
43,500.00
Tax To be Paid
$
43,500.00
g Payable Income Tax
Particulars Amount
Total Income earned 265000

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TAX LAW
Total Deductions NIL
Total Assessed Income
$
265,000.00
Residents Tax
Till $180000
$
54,232.00
From $180000
$
38,250.00
Tax To be Paid
$
92,482.00
h Payable Income Tax
Particulars Amount
Total Income
$
265,000.00
Total Deductions Nil
Total Assessed Income
$
265,000.00
Non Residents Tax
Till $180000
$
62,685.00
From $180000
$
38,250.00
Tax To be Paid
$
100,935.00
i Payable Income Tax
Particulars Amount
Total Company Income
$
265,000.00
Total Deduction NIL
Total Assessed Income
$
265,000.00
Corporation Tax 30%
Calculated Tax
$
79,500.00
Tax To be Paid
$
79,500.00
j Payable Income Tax
Particulars Amount

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TAX LAW
Total Company Income
$
19,800.00
Total Deductions NIL
Total Assessed Income
$
19,800.00
Company Tax
Company Tax rate 27.50%
Total Tax Payable
$
5,445.00
Answer 2
Calculation of Medicare levy surcharge and Medicare levy
Year Ending 30th June, 2017
Calculation of Medicare levy surcharge and Medicare levy
Particulars Amount
Total Assessed Income $ 21,335.00
Threshold $ 21,655.00
Medicare Levy Tax Rate Not Applicable as NOT more than Limit
Medicare Levy Nil
Medicare Levy Surcharge Nil
Calculation of Medicare levy surcharge and Medicare levy
Particulars Amount
Total Assessed Income for Senior $ 31,738.00
Eligible for senior tax offset
Medicare Levy Tax Rate
Not Applicable as Eligible for senior tax
offset
Final Medicare Levy NIL
Final Medicare Levy Surcharge NIL

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TAX LAW
Both do Not have to pay
Calculation of Medicare levy surcharge and Medicare levy
Particulars Amount
Total Assessed Income 55000.00
Rate for Medicare Levy 0.02
Final Medicare Levy to be Paid 1100.00
Meicare Levy surcharges not
Applicable Nil
Final Medicare Levy + Surcharge 1100.00
Calculation of Medicare levy surcharge and Medicare levy
Particulars Amount
Total Assessed Income 185000.00
Person not resident for tax purpose NIL
Final Medicare Levy to be Paid NIL
Final Medicare Levy + Surcharge NIL
Person not resident for tax purpose
Calculation of Medicare levy surcharge and Medicare levy
Particulars Amount
Total Assessed Income 2000000.00
Company not required to pay Medicare Levy
Medicare Levy NIL
Final Medicare Levy to be Paid NIL
Final Medicare Levy + Surcharge NIL
Calculation of Medicare levy surcharge and Medicare levy
Particulars Amount
Total Assessed Income $ 123,800.00
Rate for Medicare Levy 2%
Final Medicare Levy to be Paid $ 2,476.00
Final Medicare Levy Surcharge NIL
Final Medicare Levy + Surcharge $ 2,476.00

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TAX LAW
Calculation of Medicare levy surcharge and Medicare levy
Particulars Amount
Total Assessed Income 120000.00
Rate for Medicare Levy 2%
Final Medicare Levy to be Paid 2400.00
No Private Health Insurance
Final Medicare Levy Surcharge 30.00
Final Medicare Levy + Surcharge 2430.00
Calculation of Medicare levy surcharge and Medicare levy
Particulars Amount
Total Assessed Income 160000.00
Rate for Medicare Levy 2%
Final Medicare Levy to be Paid 3200.00
Final Medicare Levy Surcharge 48.00
Final Medicare Levy + Surcharge 3248.00
Calculation of Medicare levy surcharge and Medicare levy
Particulars Amount
Total Assessed Income 105000.00
Rate for Medicare Levy 2%
Final Medicare Levy to be Paid 2100.00
Final Medicare Levy Surcharge 31.50
Final Medicare Levy + Surcharge 2131.50
Minimum thershold Computation
Particulars Amount
Family's Minimum Threshold 1800000.00
Increase of threshold per child after
first 1500.00
Children born after first child 3.00
Final Threshold Increased 4500.00
Final Threshold 1804500.00

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TAX LAW
Answer 3
Calculating the Tax Payable by Rob
Year ending 30th June 2017
Particulars
Amount
($)
Salary Gross Amount 32000
Bank Interest from Australian Sources to be
Added 150
Tax Deducted by employer (PAYG) 2600
Final Assessed Income 34750
Deductions To be Allowed
clothing for work 450
Final deductions Allowed 450
Final Taxable Income as per section 4-15 of
1997 34300
Final Taxable Payable as per ITRA 1986 3059
Total Medicare Levy to be paid @2% 686
Deduction of Tax Deducted by employer
(PAYG) 2600
Final Tax to be Paid 1145
Answer 4
Computation of financial Income of Rafael
year ending 30th June 2017
Particulars
Amount
($)
Gross Salary Earned Rafael 68000
Earned FFD (Fully Franked Dividend)
Calculated Franking credit 600
Calculated Unfranked Credit 1400
Franked Dividend @ 60%
calculated Franking credit 162
calculated Unfranked Credit 738
Final Unfranked Dividends 1000
Final Income to be Assessed 71900

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TAX LAW
Final Taxable income as per section 4-15 ITAA
1997 71900
final tax on taxable income 14914.5
Addition of Medicare Levy 1438
Deduction of Franking credit 762
Deduction ofTax Deducted by employer (PAYG) 15100
Final Tax To be Paid by Rafael 490.50