Taxation Law Assignment: Income Tax and Medicare Levy Calculations

This document presents a comprehensive solution to a Taxation Law assignment, focusing on the calculation of income tax and Medicare levy for the year ending 30th June 2019. The assignment includes detailed calculations for various scenarios, such as calculating income tax payable for individuals (residents and non-residents) and companies with differing taxable incomes. The document also addresses the calculation of Medicare levy and surcharge, considering different taxable income levels and eligibility criteria. Furthermore, it provides examples of income tax calculations for individuals, incorporating assessable income, allowable deductions, and tax payable, along with the calculation of taxable income and tax payable, including dividend income and franking credits. The solutions are presented with clear calculations and references to relevant legislative provisions, offering a thorough understanding of Australian taxation law.

Running head: TAXATION LAW
Taxation Law
Name of the Student
Name of the University
Authors Note
Course ID

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Answer 1:
Ans -
A Calculation of Income Tax Payable
For the year ended 30th June 2019
Particulars Amount ($)
Taxable Income 15,000
Tax on Taxable Income 0
$0 to $18,200 Exempted
Total Tax Payable $0
Ans -
B Particulars
Amount
($)
Taxable Income 15,000
Tax on Taxable Income
$0 to $90,000 (32.5c for each $1) 4,875
Total Tax Payable 4,875
Ans -
C Particulars
Amount
($)
Taxable Income 15,000
Tax on Taxable Income
Upto $25 million @27.5% 4125
Total Tax Payable 4125
Ans -
D Particulars
Amount
($)
Taxable Income 1,55,000
Tax on Taxable Income
Upto $90,001 – $180,000 ($20,797
plus 37c for each $1 over $90,000) 44,847
Total Tax Payable 44,847
Ans-E Particulars
Amount
($)
Taxable Income 1,55,000
Tax on Taxable Income

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Upto $90,001 – $180,000 ($29,250
plus 37c for each $1 over $90,000) 53,300
Ans - F Particulars
Amount
($)
Taxable Income 1,55,000
Tax on Taxable Income
Upto $25 million @27.5% 42625
Total Tax Payable 42625
Particulars
Amount
($)
Ans-
G Taxable Income 2,55,000
Tax on Taxable Income
Upto $180,000 54,097
Over $180,000 ($54,097 plus 45c
for each $1 over $180,000) 33,750
Total Tax Payable 87,847
Particulars
Amount
($)
Ans-H Taxable Income 2,55,000
Tax on Taxable Income
Upto $180,000 62,550
Over $180,000 ($62,550 plus 45c
for each $1 over $180,000) 33,750
Total Tax Payable 96,300
Ans-I Particulars
Amount
($)
Taxable Income 2,55,000
Tax on Taxable Income
Upto $25 million @27.5% 70125
Total Tax Payable 70125

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Ans - J Particulars
Amount
($)
Taxable Income 100
Tax on Taxable Income
Upto $25 million @27.5% 27.5
Total Tax Payable 27.5
Answer 2:
Calculation of Medicare Levy and Medicare Levy Surcharge
For the year ended 30th June 2019
Ans - A Particulars (AUD$)
Taxable Income 18,000
Medicare Levy 0
Surcharge 0
Total Medicare Levy and Surcharge Payable 0
Ans - B Particulars (AUD$)
Taxable Income 32,000
Medicare Levy 0
Surcharge 0
Total Medicare Levy and Surcharge Payable 0
Ans - C Particulars (AUD$)
Taxable Income 45,000
Medicare Levy 900
Surcharge 0
Total Medicare Levy and Surcharge Payable 900
Ans - D Particulars (AUD$)
Taxable Income 45,000
Medicare Levy Exempted
Surcharge Exempted
Total Medicare Levy and Surcharge Payable Exempted

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Ans - E Particulars (AUD$)
Taxable Income 25,00,000
Medicare Levy Exempted
Surcharge Exempted
Total Medicare Levy and Surcharge Payable Exempted
Ans - F Particulars (AUD$)
Taxable Income 1,10,000
Medicare Levy 2200
Surcharge 0
Total Medicare Levy and Surcharge Payable 2200
Ans - G Particulars (AUD$)
Taxable Income 1,10,000
Medicare Levy 2200
Surcharge
$
27.50
Total Medicare Levy and Surcharge Payable 2227.5
Ans - H Particulars (AUD$)
Taxable Income 1,50,000
Medicare Levy 3000
Surcharge
$
33.90
Total Medicare Levy and Surcharge Payable 3033.90
Ans - I Particulars (AUD$)
Taxable Income 1,80,000
Medicare Levy 2200
Surcharge
$
22.00
Total Medicare Levy and Surcharge Payable 2222
Ans - J Particulars (AUD$)
Minimum thershold (A)
$
1,80,000.00
Increase in threshold per child
$
1,500.00

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No. of child after first child
$
3.00
Total increase in thershold (B)
$
4,500.00
Total Minimum Thershold (A+B)
$
1,84,500.00
Answer 3:
Calculation of Income Tax Payable
In the Books of Rob
For the year ended 30 June 2018
Particulars (AUD
$)
(AUD
$)
Assessable Income
Salary 32,000
Bank Interest 150
Add: PayG 2,600
Total Assessable Income 34,750
Expenses Eligible for Deductions
Special work clothing 450
Total Allowable Deductions 450
Taxable Income under Section 4-15 ITAA 1997 34,300
Taxable Payable under Section ITRA 1986 3059
Add: Medicare Levy 686
Less: PayG Withheld 2600
Total Tax Payable 1,145
Answer 4:
Calculation of Taxable income and Tax payable
In the Books of Rafael
For the year ended 30th June 2018
Particulars (AUD $) (AUD $)
Assessable Income
Gross Salary 68000
Dividend Income
Fully Franked Dividend 2000
Gross Up Franking Credit (2000x30/70) 857.14 2857.1429
Un-franked Dividend 1000

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60% Franked Dividend 900
Gross up Franking Credit (900x60%)x(30/70) 231.43 1,131.43
Total Assessable Income under (S4-15 ITAA 1997) 72,988.57
Taxable Payable under S-ITRA 1986
Tax on Taxable Income 15,268
Add: Medicare Levy 1,459.77
Less: Franking Credits 1,088.57
Less: PayG Withholding 15,100
Total Tax Payable 539.20

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Bibliography:
Murray, I., Taylor, J., Walpole, M., Burton, M. and Ciro, T., 2018. Understanding Taxation
Law 2019.
Woellner, R., Barkoczy, S., Murphy, S., Evans, C. and Pinto, D., 2016. Australian Taxation
Law 2016. OUP Catalogue.