Johnson is a cricketer. He works for west union club and has received an annual salary. He also earns bonus for every match he plays. In 2020 income year, he earned salary of $60,000 and bonus of $22,000. He also won an award of $8,000 from a TV show as a best player. He got gambling win of $2,000 in addition. Medicare levy was charged. Calculate Johnson’s assessable income for year 2015/16?

2016–17 tax rate

Taxable income	Tax on this income
0 – $18,200	Nil
$18,201 – $37,000	19c for each $1 over $18,200
$37,001 – $80,000	$3,572 plus 32.5c for each $1 over $37,000
$80,001 – $180,000	$17,547 plus 37c for each $1 over $80,000
$180,001 and over	$54,547 plus 45c for each $1 over $180,000

Taxpayers, who earn over $26,668/year, pay a Medicare Levy of 2% of their taxable income.

Answer rating: 100% (QA)

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