Thim Peng was 17 years old and completed school on 8 December of the current income year.
Question:
Thim Peng was 17 years old and completed school on 8 December of the current income year. She commenced full time work the following week and derived salary of $12,000 until June. She had no income while studying. As she had done so well at school her grandfather deposited $5,000 into a bank account in her name which earned her interest of $225 in the current income year. Her father transferred dividend-producing shares to her so that he could use her lower tax rate. The dividends totalled $12,000 and had franking credits of $5,143 attached.
(a) Calculate Thim Peng's taxable income and net tax payable.
(b) Recalculate your answer assuming Thim Peng did not enter full time employment but continued on to university. The salary of $12,000 was derived from part-time work.
Expert Answer:
