Calculate Simon's TAXABLE INCOMEfor the year ended 30 June2021. Show all workings.

Round each figure in assessable income and allowable deductions to the nearest whole dollar.

Please note that marks will be deducted if students include extra items that should not be included.

PLEASE DONOT CALCULATE SIMON'S TAX PAYABLE. CALCULATE TAXABLE INCOME ONLY.

Simon and his wife, Alicia (both Australian residents) have lived in Lockhart River (which is in far north Queensland) for the past four years. Aliciasuffers from a disability and is in receipt of a disability support pension from Centrelink.

They have a 13-year old son, Ethan, and a 7-year old daughter, Isabella. Both children attend a local school in Lockhart River.

Simon, who works as an engineer for a large engineering practice, provides you with the following information in relation to his taxation affairs for the year ended 30 June 2021:

Receipts:
Gross salary (includes PAYG withholding tax of $15,586 deducted)	$86,000
Gross interest received from savings account	$26
Aristocrat Leisure Ltd dividend (80% franked - taxed at 30%)	$630
Entertainment allowance received from employer	$1,800
Expenditure:
Interest paid on NAB loan to buy Aristocrat Leisure Ltd shares	$232
Annual subscription paid to Engineering Australia	$880
Entertainment expenses (client lunches) incurredwhilston employer's business	$1,500
Annual subscription to the Qantas Club for work-related travel	$560
School fees for the two children	$9,600

Answer rating: 100% (QA)

To calculate Simons taxable income for the year ended 30 June 2021 we need to consider his asses... View the full answer