Michelle is a non-resident for tax purposes (a foreign resident) for all of 2018/19. Her income...

 

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Michelle is a non-resident for tax purposes (a foreign resident) for all of 2018/19. Her income for the year consists of: (i) $21,000 from investments in Australia, (ii) $41,000 from a capital gain on the sale of property in Britain, and (iii) $25,000 for a month's advisory work performed in Melbourne. Michelle is married with two children. Explain her liability to Australian income tax for 2018/19, taking account of the low- income tax offset, low and middle income tax offset, the Medicare levy and the Medicare levy surcharge if they are relevant. Michelle is a non-resident for tax purposes (a foreign resident) for all of 2018/19. Her income for the year consists of: (i) $21,000 from investments in Australia, (ii) $41,000 from a capital gain on the sale of property in Britain, and (iii) $25,000 for a month's advisory work performed in Melbourne. Michelle is married with two children. Explain her liability to Australian income tax for 2018/19, taking account of the low- income tax offset, low and middle income tax offset, the Medicare levy and the Medicare levy surcharge if they are relevant.

Answer rating: 100% (QA)

For 2018 19 Michelle will be liable for Australian income tax on her income from investments in Aust... View the full answer