2. Income of Minors - Comprehensive calculation for a prescribed person with ded

Question

2. Income of Minors - Comprehensive calculation for a prescribed person with deductions Marcel Rower is aged 17. He is currently completing year 11 at high school and lives with parents. Neither they, nor Marcel, have private health insurance. During 2015/16 Marcel was in receipt of the following amounts: Retainer from East Coast Dominoes Football Club (Marcel is on traineeship scheme with the club) Income distribution from deceased grandfather's estate Income distribution from discretionary trust with operates the engraving Business operated by Marcel's family (tax paid by Trustee $14,415) Fully franked dividends from shares given to Marcel by his parents Business receipts (Marcel earned income washing cars during summer. He did not apply any small business concession.) Deductible business expenses Tax agent's fee 25,000 6,000 31,000 2,800 4,200 200 200 Reguired: a) b) c) For the purposes of Div 6AA, how much excepted assessable income has Marcel derived? For the purposes of Div 6AA, how much eligible assessable income has Marcel derived? Calculate tax payable by Marcel for the 2015/16 tax year.

Explanation / Answer

answer to question a)

receipt from football club 25000

income distributed by deceased grandfather estate 6000

income distributed by discretionary trust 31000

business income( 4200-200-200) 3800

assessable income 65800

Answer to question b

receipt from football club 25000

income distributed by deceased grandfather estate 6000

income distributed by discretionary trust 31000

assessable income 62000

Answer to question c)

for excepted income = at adult rates = 3800

for other income =891*68%+(62000-1307)*47%=605.88$+28525.71$=29131.59$

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