William Braveheart is a single Australian Resident taxpayer, who had a taxable income of $103,000. PAYG tax withheld from William’s gross wages was $24,500. Note that – Australian Taxpayers, who earn over $26,668/year, pay a Medicare Levy of 2% of their taxable income.

Required: Calculate William’s tax payable or refund for 2020/2021, and show working. 

Taxable Income Tax on This Income

$0 to $18,200 Nil

$18,201 to $37,000 19c for each $1 over $18,200

$37,001 to $80,000 $3,572 plus 32.5c for each $1 over $37,000

$80,001 to $180,000 $17,547 plus 37c for each $1 over $80,000

$180,001 and over $54,547 plus 47c for each $1 over $180,000

Answer rating: 100% (QA)

Calculation of Tax payable or refundable NOTE The tax liability is calculated as per ... View the full answer