Question

Short Answer Question 1: What payments would a company make this FBT year if it had a $5,200 FBT liability for the current year and they had a $5,000 FBT liability last FBT year? As FBT payment is made in advanced so during current period on $5,200 liability arises.

I have submitted these answers to the given question but i have got the reply from my tutor that both the answers are wrong. kindly help me out asap with the accurate answer I'll be very thankful i am also sharing the response of teacher

Answer 1

Short Answer Question -1
Since, the FBT liability of the previous year was more than $ 3,000, then company
is required to pay quarterly installments of FBT.
The due date for each quarter would the 20th of the month after the end of the quarter
except the quarter ending in March for which the due date would be 21st May.
Short Answer Question -1
The total taxable income for Bonny Tyler would be as under:
Salary and Wages			$53,000.00
Fully Franked Dividends			$4,500.00
Franking Credits
Un franked Dividends			$500.00
Total Income			$58,000.00
Tax on Total Income
Less: Franking Credit offset
Net Tax payable
The tax payable would be levied at applicable rates on the total income as calculated
above.The tax payable shall be offset by the value of franking credits received on the fully
franked dividends to compute the net tax payable.
In addition Bonny Tyler would be liable to pay a Medicare levy liable @ 2% on her
taxable income which would be equal to her total income calculated above as reduced
by the franking credits received on the fully franked dividends.