Question

Tom owns a business called Tom’s Band in Westfield Sydney selling musical instruments. Tom also teaches guitar on a casual basis at the Sydney Guitar School a local musical college. The following are Tom’s receipts during the 2019-20 financial year: Particulars $ Tom’s Band sales include $2,500 from sales of musical instruments made last year. In addition, there is a sale of $3,200 made in April of the current year but not yet paid. 220,000 Salary from the Sydney Guitar School. This includes Long Service Leave of $4,200 which Tom is going to take in July of the following year. 53,000 Tom has withdrawal from bank. This was made up of the original capital deposited of $20,000 plus interest of $1,000 which was paid last year and reinvested. Interest of 5% was paid on the invested money. 22,050 Fully franked dividends includes franking credits of $5,143 were attached. 12,000 Unfranked dividend 4,000 Required:

Assuming Tom does not have allowable deductions, you are required to calculate Tom's taxable income and net tax payable.

Calculation of Tom’s business income

Calculation of Tom’s taxable income

Calculation of Tom’s tax on taxable income

Calculation of Tom’s net tax payable

This question is based on the Australian tax. subject is from tax law