John Smith is a resident of Australia and a full-time employee for Paladin Ltd. He provides you with the following information for the year ended 30 June 2014.
RECEIPTS
$
Net salary received (PAYGW $18,000) 80,000
Fringe benefits - low interest loan 15,000
Fully franked dividend paid by Exmouth Ltd - reinvested 7,000
Share of income - The Estate of Harry Smith 2,500
Loss on sale of shares 3,600
Gross Profit on sale of Jet ski - purchased 01/01/2001 5,000
PAYMENTS
Motor Vehicle expenses - see Note 1
Superannuation contribution for John Smith - made by Paladin Ltd 6,000
Superannuation contribution - made by John Smith 3,000
Donation - Royal Children's Hospital 150
Net rental loss on investment property- No 1 3,500
Loss on capital investment- investment property - No 2 35,000
Education Expenses- see Note 2 3,500
Membership fees - Master Chefs Association 250
Note 1
MOTOR VEHICLE INFORMATION
John uses his car for work purposes for 9 months of the financial year. He maintained a log book for the whole of the financial year. His private kilometres were 20,000 and his total kilometres were 40,000 for the year. The Motor Vehicle (4200ccs) cost $125,000 on 1/03/2014. It has an effective life of 8 years. Expenses for the year ended 30 June 2014 are as follows:
$
Fuel 3,104
Cost of repairs -accident 9,500
Insurance 855
Repairs 427
Parking fees 22
Registration and 3rd Party 438
Road Tolls 54
Car washes 45
New Motor -purchased 1 March 2014 - not separate asset 10,500
Note 2
John is employed as an IT manager and is a member of the IT Association of Australia, a professional accrediting body providing among other services continuing professional education (CPE) to members.
Members must complete a minimum 20 hours per year of CPE. John attended a four day conference in Hawaii in October 2013 of the International IT Association. John arranged a package that included:
Conference fees 800
Air fares 1,600
Accommodation and meals - 8 days 1,100
John spent an extra 4 days holidaying.
REQUIRED:
CALCULATE the TAXABLE INCOME and TAX PAYABLE of John for the year ended 30 June 2014.