Assignment task: Lesley, Sue and Tim, Australian residents, operate a business in partnership. They have agreed to share profits and losses as follows: Lesley 50% Sue 20% Tim 30% Also, they have agreed on the following salaries and payments for the tax year 2020-21: Partner's salaries: Lesley 55,000 Sue 55,000 Tim 15,000 Interest on capital: Lesley 10,000 Tim 5,000 After taking into account the above payments in the year 2020-21, the partnership profit was $57,000. This profit included franked dividend income, but does not include a total franking credit of $3,000. Additional Information for the 2020-21 tax year: No tax or PAYG was withheld by partnership on behalf of the partners. Lesley was 40 years old. Her extra income consisted of $5,000 interest income from which the bank had withheld $1,400 in tax. Sue was 36 years old. Her extra income consisted of $70,000 in fully franked (@30%) dividends plus a distribution from a family trust of $8,800. During the current year she incurred $10,000 interest expense on the loan she obtained to purchase the shares. Tim was 66 years old. He had rental property income of $30,000 from a holiday home available for rent for 9 months and income from his complying superannuation fund of $50,000. His annual costs on this property consisted of $5,000 general expenses and $16,000 interest expense.
Required: For the tax year ended 30 June 2021:
1. Calculate the distribution to each partner (all have private health insurance, and no dependants).
2. Calculate the taxable income and tax payable for each of the partners.