Assignment Task Three

Ms Nora Bombora is a 48 year old individual resident of Australia (Newcastle) for taxation purposes. She was employed as a school teacher for the full 2019 financial year. Nora is single with no dependants and did not have any private hospital cover. The following information relates to the year ended 30 June 2019:

Receipts

Gross Salary as per payment summary (note 1) $88,880

Fully Franked dividends received from ASX listed company 4,200

Unfranked dividends received 950

Net Interest Income received from New Zealand bank account (note 2) 800

Gross rent received 6,200

Gift from her grandmother 5,000

Cash prize for NSW Teacher of the Year award 1,500

Payments

Expenses relating to the rental property (all deductible) 8,500

Purchase (12/01/19) of a computer used 75% for business

with an effective life of 4 years 1,850

Purchase (01/01/19) of a briefcase used 100% for business

with an effective life of 4 years 280

Personal contribution to a complying superannuation fund 2,500

Personal medical expenses paid (after Medicare refunds) 4,250

Annual fee Australian Teachers Trade Union 1,300

Other deductible expenditure relating to Australian income 1,000

Notes

1. The payment summary also showed $31,000 PAYG deducted, a Reportable Fringe Benefit amount of $4,500 and a Reportable Employer Superannuation Contribution amount of $3,300.

2. The New Zealand government withheld $200 tax (Australian dollar AUD equivalent) from the gross $1,000 interest earned.

3. At 30 June 2019 Nora had an accumulated HELP (HECS) debt of $7,500

Required

Calculate the taxpayers minimum taxable income and net tax payable/refundable for the year ended 30 June 2019. Show all workings. Referencing to the Income Tax Assessment Acts is not required.