Problem
Question I
Lauren works as a real estate agent for the Professionals Perth. Her work requires her to travel between various client meetings and properties. Lauren purchased a 2200-cc Holden Astra in July at a cost of $18 500. She had additional expenses for registration and insurance of $1200.
During the same tax year, Lauren incurred the following expenses:
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Country:
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$
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Petrol
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5000
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Parking
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50
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Car washes
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200
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Parking fines (client premises)
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450
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Freeway tolls (work-related travel)
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230
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Taxi fares from work Christmas party
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50
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Taxi fares to work while car is being repaired
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400
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Gas conversion for the Astra
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2300
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Car loan repayments (includes interest of $2500)
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6800
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Insurance excess (car accident)
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400
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Task
Any calculation for depreciation will be calculated using the diminishing value method.
What is the total of Lauren's allowable car expenses for the purposes of using Division 28 methods of calculations?
Question II
Susan Gibney is a resident individual taxpayer.
During the tax year, Susan derived total income of $85 000 of which $6000 was exempt income.
Susan's deductions for the year also totalled $7000.
The following tax rates are applicable to determine tax payable for Susan
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Taxable income
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Tax on this income
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$18,201 - $37,000
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19c for each $1 over $18,200
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$37,001 - $90,000
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$3,572 plus 32.5c for each $1 over $37,000
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$90,001 - $180,000
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$20,797 plus 37c for each $1 over $90,000
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$180,001 and over
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$54,097 plus 45c for each $1 over $180,000
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Cournty: Australia
Task
1. What is Susan's assessable income?
2. What is Susan's taxable income?
3. What tax-free threshold applies to Susan?
4. If Susan were a non-resident for tax purposes, what tax-free threshold would she receive?
5. Calculate Susan's basic tax on taxable income.
6. What can Susan do if she requires advice on her decision-making process with respect to the tax matters?