Question

On Thursday, Ahmed sends you the following email with further information on Lisa’s circumstances.

From: Ahmed Sent: Thursday, 17 September 2020, 11:23AM

Subject: Lisa Eastwood – additional information

Good morning, Lisa 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.

Again, I need this by the end of Friday. Ahmed. Senior Accountant M&M Tax Accountants

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, as well as the information in Part A of this assessment task. In doing so, you must present an accurate and complete analysis.

Please complete the following subset of FIVE questions to complete this part.

1. 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

2. Calculate Lisa’s Basic Tax Payable. Show all workings.

3. Calculate Lisa’s Medicare Levy. Show all workings.

4. Calculate Lisa’s Medicare Levy Surcharge. Show all workings.

5. Calculate Lisa’s Net Tax Payable. Show all workings.

Answer 1

PA 1. Lisa's Texable Income Income Interest Income Ordinary Income Statutory Income $ 1000 Wages (Melbourne Employment) Wages (Darwin Employment) lovo $ 125000 $ 25000 Bonus $ 5000 Total Assessable Income $ 156000 Less :- General Deductions $ 3300 Less - Specific Deductious $ Total Allowable Deductions $ 4300 Gross the correo Income (Adjusted) $ 151700 Less: Standard Deductions (For Single) & 12200 Taxable Income $ 139500 calculation of Basic Tex Payable Rok Tex of 입 Particulars (Income Tex 109/ 0-9700 farvox 107] $970 12%. 9700-39475 [29795x12"/$3573 222 39475-84200 (44725x 22% $9839-5 24% 139500 - 84200 [55300 X 24%] $13272 Total Tox $27654.S Rounded off $27655

DATE: 1 Amount 3. $2175 $ 0 4. Medicere levied when an Lisa's Medicare Levy Tax Role 1.45% of employees wages [($125 125000 + $25000) x 1.45%.] Wages (Melbourne Employment $ 125000) & wages (Darwin Employment $25000) Lisa's Medicare levy Surcharge Levy surcharge of 0.9% is employee reaches the thresholds limite se. $200000 for singles Since, Lisa wages $200 000 be charged Lisa's Net Tox Payable (tox Refundable From Serial 2. Add: Medicare Levy Less: Fax with held (3) ") from Melbourne employment 1 from Darwin Employment Tax Refundable so Medicare lavy in less than will nor 5. Total Basic Tex $27655 $2175 $4349 $ 43000 $ 1500 ($14670