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  Answer No. 1 a)    No Income tax is payable on Australian resident Individual having taxable income of less than or equal to $15,000.  b)   Tax payable on Australian non- resident Individual having taxable income of $15,000 is $$4,875 c)   In case of small company then tax payable (@ 27.5%) will be $4,125 and in case of other than small company then tax payable (@ 30%) will be $4,500. d)   Using successive taxation slabs, tax payable will be $44,982 i.e. (19,822 + (0.37*(155,000-87,001))) e)   In case of non- resident the tax payable will be $ 53,435 i.e. (28,275+ (0.37*(155,000-87,001))) f)   In case of small company then tax payable (@ 27.5%) will be $42,625 and in case of other than small company then tax payable (@ 30%) will be $46,500. g)   In case of resident the tax payable will be $87,982 i.e. (54,232+ (0.45*(255,000-180,001))) h)   In case of non- resident the tax payable will be $96,435 i.e. (62,685+ (0.45*(255,000-180,001))) i)   In case of small company then tax payable (@ 27.5%) will be $70,125 and in case of other than small company then tax payable (@ 30%) will be $76,500.  j)   In case of small business entity, the tax payable will be $27.50 (@27.5%) Answer No. 2 a.   As the taxable income of the resident individuals is equal to $18,000 hence there will be no “Medicare   Levy”  and “Medicare  Levy Sur  charge”.   b.   Threshold of $32,000 is below from the threshold of    “Medicare   Levy”  hence, there will  be no “Medicare   Levy”  and “Medicare  Levy Surcharge”.   c.   “Medicare Levy” will be $900 ($45,000 * 2%), however, “Medicare Levy Surcharge” is nil because taxable income is less than $90,000 threshold.  d.   As the taxable income of the resident individuals is equal to $45,000 hence there will be no “Medicare   Levy”  and “Medicare  Levy Surcharge”.  e.   “Medicare   Levy”  and “Medicare  Levy Surcharge”,  is applicable on the individuals not the company hence, there is no implication of “Medicare   Levy”  and “Medicare  Levy Surcharge”  on the Company. f.   Under the provision of relevant laws “Medicare   Levy”  and “Medicare  Levy Surcharge”  is applicable if taxable income is exceeding $21,655 and $ 90,000 respectively. However, if the individual is holding private health insurance then he is also required to pay “Medicare  Levy Surcharge”  along with the “Medicare   Levy”.  Computation of both will  be as follows; Medicare Levy = $ 2,200 ($110,000*2%) Medicare Levy Surcharge = $1,375 ($110,000)*1.25% {Tier 2 ($105,001 - $140,000)}.  g.   In this case, Medical Levy will be $2,200 (as calculated in part (f) above) and Medical Levy is $1,375 (1.25%*110,000). h.   Medical Levy will be $ 3,000 (150,000*2%) with “Nil” Medical Levy surcharge as  private health insurance is for 90 days of the income year.  i.   Medical Levy = 2,200 (110,000*2%) Income of the Family, including spouse = 185,000 (110k+75k) Medicare Levy Surcharge = $1850 (185,000*1%)  j.   The threshold of medical levy surcharge in case of family income is increased by $1500 for each dependent child after the first child. Therefore, computation of minimum medical levy surcharge will be as follows; Minimum MLS threshold = $ 184,500 (180000+(1500*3)).  Answer No. 3  Salary = $32,000 Bank interest received = $150 Allowable deductions = ($450) Personal exemption amount = ($4,000) Standard deduction amount = ($6,300) Taxable income  = $ 21,400 Tax on Income … (a)  = $2,749 (9225 * 10 % + (21400 - 9225) * 15 %) Tax already paid … (b)  = $2,600  Tax payable (a-b) = $149  Answer No. 4 Gross salary = $68,000 Fully franked dividend = $2000 Franking credit ($2000*30/70) = $857 Unfranked dividend = $1000 60% franked dividend =$ 900 Franking credit ($900*60%*30/70) =$231 Taxable income =$72,988 Tax payable……. (a) = $ 15,268 Less: franking tax offset…..(b) = ($ 1,088) Sub Total (c=(a-b)) = $14,180 Add: Medicare levy (1.5% * 72, 988)….(d) = $ 1,095 Sub Total (d=(c-d)) = $ 15,275 Less Tax deducted at source = $15,100  Tax payable = $175

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