Calculate the taxable income and net tax payable


Response to the following problem:

Ms Adder is a 28 year old individual resident of Australia (Melbourne) for taxation purposes. She was employed as an accountant for the full 2017 financial year with the exception of 2 months spent in the United States on a working holiday and a period of 4 weeks on her return unemployed.

The following information relates to the year ended 30 June 2017:

Receipts

Gross Salary as per Payment Summary (note 1) $75,524

Fully Franked dividends received 3,800

Unfranked dividends received 1,350

US Gross Salary (note 2) 8,240

Gross rent received 5,200

Centrelink Unemployment benefit (NewStart Allowance) 1,950

Gift from her grandmother 5,000

Payments

Expenses relating to the rental property (all deductible) 8,500

Purchase (02/02/17) of a computer used 80% for business

with an effective life of 5 years 1,850

Purchase (01/01/17) of a briefcase used 100% for business

with an effective life of 4 years 280

Personal contribution to a complying superannuation fund 2,500

Airfares to the US 2,000

Other deductible expenditure relating to Australian income 1,000

Other information

At 30 June 2017 Ms Adder had an accumulated HELP (HECS) debt of $7,900

Ms Adder is single with no dependants and did not have any private hospital cover.

Notes

1. The Payment Summary also showed $28,000 PAYG deducted, a Reportable Fringe Benefit amount of $4,200 and a Reportable Employer Superannuation Contribution amount of $3,500.

2. The US salary was received from employment during her 2 month stay in Las Vegas as a casino card dealer. US tax deducted (in Australian Equivalent dollars) was $995.

Required

Calculate the taxpayer's taxable income and net tax payable/refundable for the year ended 30 June 2017. Show all workings. Referencing to the Income Tax Assessment acts is not required.

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Taxation: Calculate the taxable income and net tax payable
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