Question: Josh (an Australian resident) is 35 years old, single, has no dependents, and no private patient hospital insurance. He is employed as a radiographer at a local hospital. Josh's taxable income for the 2016-2017 income year is calculated as follows:
1. Gross salary, being ordinary income from employment, section 6-5 $105,000
2. Net Financial Investment Loss:
- Dividends received, s44, statu-tory income $7,000
- Franking credits, s207-20, statu-tory income $3,000
- Interest paid on the loan used to fund the acquisition of the shares, deductible, incurred to produce assessable income, section 8-1 ($12,000)
Taxable income $103,000
Josh's payment summary for his 2016-2017 income year shows the following:
A. Reportable fringe benefits of $20,000;
B. PAYG withheld and paid to the ATO on his behalf of $27,000. At the end of the 2016-2017 income year, Josh's balance on his HELP loan is $2,500.
You are required to: Calculate tax payable by Josh for the 2016-2017 income year. Your answer should reference relevant sections of the Income Tax Assessment Acts, relevant case law, or rulings from the Australian Taxation Office. Show all calculations and provide explanations for your answer.