Question

Based on taxation in accounting

Lisa from Australia has sent through the following information. Can you pull this together with what you have examined already so we can have a tax estimate ready to go.

• Wages (Melbourne employment) - $125,000 net wages, PAYG withheld of $43,000 plus a bonus of $5,000 was paid.
• Wages (Darwin employment) - $25,000 net wages, PAYG withheld of $1,500
• Interest income $1,000
• Allowable general deductions $3,300
• Allowable specific deductions $1,000
• Lisa is single with no private health insurance.
• Lisa has no reportable fringe benefits or reportable superannuation contributions.

Required: You are required to calculate Lisa’s taxable income and net tax payable for the year ending 30 June 2020 based on the above information provided

Calculate Lisa’s Taxable Income. Show all workings.

Hint: You can use the following format:

Ordinary Income	$X
Statutory Income	$X
Total Assessable Income	$X
General Deductions	$X
Specific Deductions	$X
Total Allowable Deductions	$X
Taxable Income	$X

Q2: Calculate Lisa’s Basic Tax Payable. Show all workings.

Q3: Calculate Lisa’s Medicare Levy. Show all workings

Q4: Calculate Lisa’s Medicare Levy Surcharge. Show all workings

Q5: Calculate Lisa’s Net Tax Payable. Show all workings.

Answer 1

Particulars Withheld Net Income Wages (Melbourne Employment) Bonus Interest Income Wages (Darwin Employment) Sum Allowable Deductions - General Allowable Deductions - Specific Based on Available Information Gross/Ordinary Income 168,000.00 5,000.00 1,000.00 26,500.00 200,500.00 (43,000.00)| 125,000.00 5,000.00 1,000.00 (1,500.00) 25,000.00 (44,500.00)| 156,000.00 3,300.00 1,000.00 Computation of Income 194,500.00 5,000.00 199,500.00 1,000.00 Income From Employement Wages Bonus Income From Other Sources Interest Income Gross Total Income Less: Allowances/Exemptions Net Total Income Less: Deductions Taxable income 1,000.00 200,500.00 200,500.00 4,300.00 196,200.00 Computation of Tax Taxable income Tax on Income as per Residents Tax Rate 2019-20 Less: PAYG Withheld Balance Tax Payable Medicare Levy @2% Total Balance Tax Payable 196,200.00 50,497.00 44,500.00 5,997.00 3,924.00 9,921.00 0-$18,200 $18,201 - $37,000 $37,001 - $90,000 $90,001 - $180,000 Calculation of tax on income as per Residents Tax Rate 2019-20 18,200.00 18,800.00 53,000.00 66,000.00 3,572.00 17,225.00 29,700.00 50,497.00 3,924.00 Medicare Levy @2% (After Considering following points) Eligible for the seniors and pensioners tax offset (SAPTO)? NO Dependent children and students did you have ? NO Did you have a spouse (married or de facto) on 30 June of NO the selected income year? (In case of yes, provide its taxable income) Were you eligible for any Medicare levy exemption? NO (In case of yes, provide days for Full/Half/Both)

The above calculation rates apply to individuals who are Australian residents for tax purposes.