TLAW 303 Taxation Law Assignment: Income Tax Calculation 2018

This assignment provides detailed income tax calculations for various scenarios, including different income levels, residency statuses, and entity types (individuals and companies) for the year ending 30 June 2018. It covers the calculation of income tax payable, Medicare levy, and Medicare levy surcharge, considering assessable income, deductions, and franking credits. The assignment also includes examples related to salary, bank interest, dividends, and PAYG, providing a comprehensive overview of income tax principles and calculations under Australian Taxation Law. Desklib offers a wealth of similar solved assignments and past papers for students seeking further assistance.

Answer 1
Income Tax Payable
For the year Ending 30 June 2018
a Calculation of Income Tax payable
Particulars Amount
Total Assessed Income $
15,000.00
Total Income To be Taxed
Till $18200 Exempted
Tax Payable 0
b Calculation of Income Tax payable
Particulars Amount
Total Assessed Income $
15,000.00
Total Income To be Taxed
Upto $87000 (32.5%) $
4,875.00
Total Tax Payable $
4,875.00
c Calculation of Income Tax payable
Particulars Amount
Total Assessed Income $
15,000.00
Total Income To be Taxed
rate 30% $
4,500.00
Total Tax Payable $
4,500.00
d Calculation of Income Tax payable
Particulars Amount
Total Assessed Income $
1,55,000.00
Total Income To be Taxed
Upto $87000 $
19,822.00
above $87001 @37% $
25,160.00
Total Tax Payable $
44,982.00

e Calculation of Income Tax payable
Particulars Amount
Total Assessed Income $
1,55,000.00
Total Income To be Taxed
Upto $87000 $
28,275.00
above $87001 to $180000 $
25,160.00
Total Tax $
53,435.00
f Calculation of Income Tax payable
Particulars Amount
Total Assessed Income $
1,55,000.00
Total Income To be Taxed
Tax rate 30% $
46,500.00
Total Tax $
46,500.00
g Calculation of Income Tax payable
Particulars Amount
Total Assessed Income $
2,55,000.00
Total Income To be Taxed
Till $180000 $
54,232.00
Over $180000 $
33,750.00
Total Tax Payable $
87,982.00
h Calculation of Income Tax payable
Particulars Amount
Total Assessed Income $
2,55,000.00
Total Income To be Taxed
Till $180000 $
62,685.00
Over $180000 $
33,750.00
Total Tax $

96,435.00
i Calculation of Income Tax payable
Particulars Amount
Total Assessed Income $
2,55,000.00
Total Income To be Taxed
Tax rate 30% $
76,500.00
Total Tax $
76,500.00
j Calculation of Income Tax payable
Particulars Amount
Total Assessed Income $
100.00
Total Income To be Taxed
Tax rate 27.5% $
27.50
Total Tax $
27.50

Answer 2
Medicare Levy and Medicare Levy Surcharge
year Ending 30 June 2018
a Calculation of Medicare Levy and Medicare surcharge payable
Particulars Amount ($)
Taxable Income $
18,000.00
Medicare Levy 0
Medicare Levy Surcharge 0
Medicare Levy and Surcharge 0
Here the Australian resident aged 25 years do not exceed the
minimum threshold of medical levy
b Levy and Medicare surcharge payable
Particulars Amount ($)
Taxable Income $
32,000.00
Medicare Levy 0
Medicare Levy Surcharge 0
Medicare Levy and Surcharge 0
Here the senior Australian resident years do not exceed the minimum
threshold of medical levy
c Medicare Levy and Medicare surcharge
Particulars Amount ($)
Taxable Income 45000.00
Medicare Levy 900.00
Medicare Levy Surcharge 0.00
Medicare Levy and Surcharge 900.00
d Medicare Levy and Medicare surcharge
Particulars Amount ($)
Taxable Income 45000.00
Medicare Levy 0.00
Medicare Levy Surcharge 0.00
Medicare Levy and Surcharge 0.00
Exempted: Foreign resident for full year

e Medicare Levy and Medicare surcharge
Particulars Amount ($)
Taxable Income 2500000.00
Medicare Levy 0.00
Medicare Levy Surcharge 0.00
Medicare Levy and Surcharge 0.00
Exempted:
f Medicare Levy and Medicare surcharge
Particulars Amount ($)
Taxable Income $
1,10,000.00
Medicare Levy $
2,200.00
Medicare Levy Surcharge 0
Medicare Levy and Surcharge $
2,200.00
g Medicare Levy and Medicare surcharge
Particulars Amount ($)
Taxable Income 110000.00
Medicare Levy 2200.00
Medicare Levy Surcharge 27.50
Medicare Levy and Surcharge 2227.50
h Medicare Levy and Medicare surcharge
Particulars Amount ($)
Taxable Income (Victor and
Jackie)
150000.00
Medicare Levy 3000.00
Medicare Levy Surcharge 45.00
Medicare Levy and Surcharge 3045.00
i Medicare Levy and Medicare surcharge
Particulars Amount ($)
Taxable Income 185000.00
Medicare Levy 3700.00
Medicare Levy Surcharge 55.50
Medicare Levy and Surcharge 3755.50
j Minimum Threshold

Particulars Amount ($)
Minimum Threshold 1800000.00
Threshold increase for a child 1500.00
Child after first 3.00
Increase in Threshold 4500.00
Total Minimum Threshold 1804500.00

Answer 3
Rob’s Income
Year ending 30 June 2018
Particulars Amount
($)
Salary 32000
Bank Interest 150
Pay G 2600
Assessable Income 34750
Deductions
Work Clothing 450
Allowable Deductions 450
Taxable Income as per 4-15 ITAA 1997 34300
Tax under ITRA 1986 3059
Medicare levy 686
Pay G 2600
Total Tax payable 1145

Answer 4
Rafael’s Income
Year ending 2018
Particulars Amt
($)
Assessable Income 68000
Fully franked dividend 2000
Franking credit 600
Un franked Credit 1400
Franked Dividend 60% 900
Franking credit 162
Un franked Credit 738
Un franked Dividend 1000
Assessable Income 70900
Income as per 4-15 ITAA 1997 70900
Tax as per tax rates 14589.
5
Medicare Levy 1438
Franking credit to be reduced 762
PAYG to be reduced 15100
Final Tax 490.50