EDITH COWAN UNIVERSITY INCOME TAX FRAMEWORK II LAW2410 TUTORIAL PAPER NO. 1 1/20
ID: 2540452 • Letter: E
Question
EDITH COWAN UNIVERSITY INCOME TAX FRAMEWORK II LAW2410 TUTORIAL PAPER NO. 1 1/2018 QUESTION 1 Peter, who is single, will derive $95,000 of assessable income and will be entitled to $25,000 deductions during the current income year. He has made an advance payment of $2,000 to the Australian Taxation Office for the current income year He has private health insurance cover. Calculate Peter's tax liability (or tax refund), including Medicare levy (f applicable), for the current income year. (Assume that Peter is not entitled to any rebate/offset). QUESTION 2 Martha, who is single, will derive $100,000 of assessable income and will be entitled to $25,000 deductions during the current income year She has made an advance payment of $20,000 to the Australian Taxation Office for the current income year. She has private health insurance cover. Calculate Martha's tax liability (or tax refund), including Medicare levy (if applicable), for the current income year. (Assume that Martha is not entitled to any rebate/offset). Will your answer be different if she has $120,000 of taxable income and has not made any advance payment to the Australian Taxation Office for the current income year?Explanation / Answer
PETER TAX LIABILITY FOR F Y 2017-18
TOTAL INCOME US$ 95000
LESS DEDUCTIONS 25000
NET TAXABLE INCOME 70000
LESS MEDICARE LEAVY 1400
2 % AS HE IS PAYING
TOWARDS HEALTH POLICY
TAXABLE INCOME 68600
TOTAL TAX
UP TO 37000 IS 3572
37001 TO 68600 - 10270
32.5 C FOR ONE US$
TOTAL 31600*32.5
TOTAL TAX 13842
3572+10270
LESS PAID 2000
NET PAYABLE 11842
MARATHA FIRST CASE
TOTAL 100000
LESS 25000
NET 75000
MEDICARE 2% 1500
NET 73500
TAX UP TO 37000 IS 3572
73500-37000 = 11862.5
36500 @ 32.5 CENT
TOTAL 15434.50
PAID 20000.00
REFUND 4565.50
SECOND CASE -
TAXABLE 120000
LESS MEDICARE
2% 2400
NET 117600
TAX UP TO 87000 19822
117600-87000=30600@ 37= 11322
TOTAL 31144 AUSTRILIAN DOLLAR IS PAYBLE
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