Australian Taxation lawSolutionSolution a Australian residen

Australian Taxation law

Solution

Solution a:

Australian resident individual will pay nil tax for taxable income up to $18,200 for financial year 2016-17. In the present question taxable income is $18,000, hence tax will be nil

Solution b:

Australian individual non resident will pay 32.5% tax on taxable income up to $87,000 for financial year 2016-17. In the present question taxable income is $18,000, therefore

Tax = $18,000*32.5% = $5,850

Solution c:

Austrialian company have to pay flat 27.50% tax rate, in case it falls under small business entities for 2016-17, all other entities have to pay tax at the rate of 30%.

Taxable income of australian company = $18,000

Tax considering it as SBE = $18,000*27.5% = $4,950

Tax considering it as other entities = $18,000*30% = $5,400

Solution d:

Australian resident individual will pay nil tax for taxable income up to $18,200 for financial year 2016-17. tax rate is 19% for income from $18,201 to $37,000. Tax rate is 32.5% for income from $37,001 to $87,000. Tax rate is 37% for income from $87,001 to $180,000.

In the present question taxable income is $145,000, Therefore

Tax = [($37,000 - $18,200)*19%] + [($87000 - $37000)*32.5%] + [($145000 - $87,000)*37%]

Tac = $41,282