(Comprehensive calculation for a prescribed person)
Ron Veldhuis is aged 16 and is currently studying full-time at high school whilst living with his parents.
During the 2017/18 tax year, Ron received the following amounts: $
Gross Wages from part-time job (PAYG tax withheld $800) 4,700
Gross Interest received on fund given by his parents (TFN withheld $4,900) 10,000
Income Distribution from Estate of Late Aunt 7,500
Income Distribution from Family Trust (tax paid by Trustee $1,500) 6,000
Unfranked Dividend from shares in QQQ Ltd (these were bought with funds from previous Family Trust distributions) 1,200
Required:
(a) For the purposes of Div 6AA, how much excepted assessable income has Ron derived?
Expected Income = Wages + Distribution from Estate
= 4700 + 7500
= $ 12200
(b) For the purposes of Div 6AA, how much eligible assessable income has Ron derived?
Eligible Income = Interest + Trust + Unfranked Dividend
= 10000 + 6000 + 1200
= $ 17200
(c) Calculate net tax payable by Ron for the 2017/18 tax year.
Expected assessable Income $ 12200 tax on ordinary rates - Nil
Eligible assessable Income $ 17200 on div 6AA tax rates - 45% = $ 7740
+ Medicare levy @ 2% on 29400 = $ 588
Total income tax payable = $ 8328
(-) Low Income tax offset = Nil
(-) Pay G Tax withheld = $ 800 + $ 4900 + $ 1500
= $ 7200
Net Tax payable = (8328-7200)
= $ 1128
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