Lowest guaranteed price across the globe. Get upto 50% off ! Book Now

# Australian Income Tax Law And Practice

## QUESTION 1

1. The taxable income is determined under s4-15 wherein all deductions are subtracted from the total assessable income. In the context of given case scenario, Michael's tax liability amounts to \$122,000 (=\$130,000-\$8,000). This is only applicable for Michael as his wife is unemployed. The tax payable can be further bifurcated and presented as under:

 Taxable Income Tax on this income \$0 to \$18,200 No tax payable \$18,201 to \$37,000 \$18800*19% = \$3,572 \$37,001 to \$87,000 \$50,000*32.5% = \$16,250 \$87,001 to \$122,000 \$35,000*37% = \$12,950 Total Tax Payable by Michael \$32,772 (=\$3,572+\$16,250+\$12,950)

2. Mary's Decor is a home decorators business operated by Mary with a total turnover of \$350,000 for the current financial year. It is assumed that Mary is a Cash Taxpayer. Since the total turnover value includes a component of Credit Sales worth \$60,000, their revenue would only be taken into consideration for tax purpose when such debts are actually realised by Mary from Accounts Receivables. The same applies for Interest payments realised worth \$3,000 from the total of \$8,000. Hence, the net turnover relevant for tax liability computation is \$290,000 and Interest Payments received on overdue of customers is \$3,000. Also, there are tax Thus, the total tax liability of Mary amounts to \$65000 (=\$290,000+\$8,000-\$3,000-\$230,000). Hence, the total tax payable by Mary on their total tax liability can be bifurcated and presented

Cite This Work To export references to this Sample, select the desired referencing style below:
Copy to Clipboard
Copy to Clipboard
Copy to Clipboard
Copy to Clipboard
Instant Assignment Help. [Internet]. Instant Assignment Help.(2023), Retrieved from: https://www.instantassignmenthelp.com/free-samples/law-assignment-help/australian-income-tax-law-and-practice
Copy to Clipboard
Boost Grades & Leave Stress

Share Your Requirements Now for Customized Solutions.

Lowest Price
USD6.27

Delivered on-time or your money back

100+ Qualified Writers

For Best (Accounting) Assignment Help

1456 - Completed Orders
152 - Completed Orders
Olivia JamesView Profile Hire Me
2356 - Completed Orders
Jacobs GaughView Profile Hire Me
1432 - Completed Orders
Rose AndersonView Profile Hire Me
View All Writers