Task B4.1 What is my taxable income?

Step 1 of 1

You are a registered tax agent who completes returns for a number of clients. Three of your clients have presented you with their financial information. They are not sure what information is relevant.

Your task

For Matt, Camilo and Susie, calculate:

  • assessable income
  • allowable deductions
  • taxable income.

Your teacher will direct you whether to use the Excel spreadsheet with or without formulas.

Select Taxable income with formulas Excel spreadsheet to work out the financial information for Matt, Camilo and Susie.

Matt

Matt is 17 years old. While he is at school, he works part-time with a building supplies company on weekends and during vacations. He has listed his assessable income and allowable deductions.

Matt's financial details

Money received during tax year

$

Wages

11,700

Bank interest

60

Payments during the year

 

Donations to an approved charity

30

Accountant’s fee for preparation of tax return

70

Camilo

Camilo is a very talented Spanish-style singer who sings regularly at a restaurant and at private functions. He is single, aged 25 and an Australian resident for tax purposes. Camilo plays soccer for a local amateur club. He owns two properties, the house he lives in and a town house which he rents out.

Camilo's financial details

Money received during tax year

$

Best player of the month award (gift voucher)

100

Singing fees

75,000

Bank interest

190

Rent from town house

19,840

 

 

Payments during the year

 

Singing lessons

3,500

Football gear

800

Donations to an approved charity

300

Town house expenses (rates, agent and repairs)

3,100

Interest on mortgage for town house

13,800

Interest on mortgage of the house he lives in

12,100

Costume cleaning costs

1,100

Car expenses to and from work

3,800

Accountant's fee for preparation of tax return

200

Vacation expenses

7,000

Susie

Susie is a journalist who works for a large daily newspaper. She is married, aged 32 and is an Australian resident for tax purposes. Susie has term deposits with various banks.

Susie's financial details

Money received during tax year

$

Inheritance from grandparent's estate

105,000

Salary

65,000

Term deposit interest

21,000

Lottery winnings

1,000

 

 

Payments during the year

 

Accountant's fee for preparation of tax return

180

Subscriptions to investment magazines

200

Donations to approved charity

610

Train travel expenses to work each day

1,100

Union fees to Association of Journalists

1,000

Depreciation of computer equipment (used for work)

480

Cost of TAFE course on furniture restoration

520

Mobile phone used for work

800

Complete the spreadsheet, then print it or email it to your teacher.

  • Fact 26

    The introduction of electronic lodgement of tax forms in the late 1980s not only reduced the time it took to send out returns from ten weeks to two weeks but had a significant impact on the incidence of repetitive strain injury among data processors at the ATO.

Maximum contribution base

A limit to the amount of superannuation contributions that an employer is required to provide for an employee.

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