Question

1. Jannie is your first client. She wants to know about some tax-related provisions and practices. She asks some questions - what are the legal provision related to Taxable income, Medicare levy, and Medicare levy surcharge? Answer these questions based on legal provision and practice. (5 marks) 

2. She needs to lodge his income tax for 2020/21. Calculate her Total Assessable Income, Taxable Income, Tax Liability, Student loan (HECS), Medicare Levy, and Medicare Levy Surcharge if applicable, for the taxpayer with the information below: • Jannie is a single and an Australian resident who plans to lodge tax for the tax year 2020 -2021 

• Her total taxable income is $100,000 (Including tax withheld) • She does not have private health insurance. 

• Jannie has a student loan HECS outstanding for her previous study at Tasmania University of $43,000. 

• Her employer pays superannuation guarantee charge of 9.5% on top of her salary to her nominated fund. 

• Jannie earned a passive income of $6,000 from the investments in shares in the same tax year. (Maximum – 800 words) 

QUESTION 2: Income Tax Calculation Weighting Total Assessable income 1 %

 Total taxable income 1% 

Using correct income tax rate 1 % 

Medicare Levy 1 % 

Medicare Levy Surcharge 1 % 

HELP repayment amount with using current threshold and rate 1 % 

Total Tax Liability 2 % 

Net Tax Liability (Total Tax Liability less any applicable tax offset if any) 2 % 

QUESTION 2 (10 MARKS) 

Calculate the taxable value of the fringe benefit using the statutory formula in the following case context: Robin provides his employee (Jack) with the use of a Toyota car 196 days during the Fringe Benefits Tax year. During the period, the car travelled 12,000 km. Robin purchased the car last year for $47,000. Jack contributed $2,000 towards the cost of running the car and has provided Robin with relevant documentation.