Question

Jane, a non-resident taxpayer, has a taxable income of $90,700 for the income tax year ended 30 June 2018, with PAYG installments of $19,500 deducted by her employer. She has no dependents. Her net tax to pay or refund will be (ignore Medicare Levy)

Answer 1

Answer:

$10,144.00

Explanation:

Calculation for what her net tax to pay or refund will be

First step is to calculate her Basic income tax

Basic income tax= $28,275+[($90,700-$87,000)*37%]

Basic income tax= $28,275+($3,700*37%)

Basic income tax= $28,275+$1,369

Basic income tax= $29,644

In order calculate her net tax to pay or refund will have to deduct PAYG which is fully known as Pay As You Go from her Basic income tax

Hence,

Net tax to pay or refund = $29,644-$19,500

Net tax to pay or refund =$10,144.00

Therefore what her net tax to pay or refund will be is $10,144.00