You are the newly appointed tax practitioner to complete Emily’s tax return and have downloaded the prefill report for Emily’s tax return (hint, you can read what a prefill report is here (Links to an external site.)).

Key outputs from the Prefill Report are as follows:

Item 1: Salary or Wages

Payer Details	Income Type	Gross $	PAYG Withheld $
Digital Co.	Salary	$10,000	$1,000
Malua Bay	Salary	$50,000	$15,000

Item IT1: Reportable Fringe Benefits

Payer Details	Amount $
Malua Bay	$15,000

Item 10: Interest Income

Payer Details	Amount $
ABC Bank	$20,000

Medicare Levy Surcharge

Health Insurer	Membership Number	Number of days this policy provides an appropriate level of private patient hospital cover	Premiums Paid $	Rebate Received $
B HealthPHI	C 897654	365	$3,125	$475

Number of dependent children: Zero

Spouse: Nil

Higher Education Loan Program (HELP)

HELP Balance $

$5,000

From the above, you determine that out of the above details, Emily’s ordinary income include salary and interest.

Emily has provided you with the following information:

• Invoice for the preparation of the prior year tax return, $95 (deduction allowed by section 25-5 ITAA97)
• Travel expenses of $4,500 (deduction allowed by section 8-1 ITAA97)
• Home running expenses of $100 calculated under the ‘short-cut’ method relating to the period Emily worked from home whilst employed by Malua Bay (the home office deduction is allowed by section 8-1 ITAA97 and the method employed in line with the temporary COVID-19 mechanisms introduced. You can read further on this here (Links to an external site.))

Required:

Determine for Emily the following (assuming Emily is a resident of Australia for tax purposes):

1. Taxable income (2 mark)
2. Basic tax liability (ignore tax offsets in this question) (1 mark)
3. Medicare levy and Medicare levy surcharge (1 mark)
4. HELP repayment (1 mark)