You Have Been Approached by a New Client, Ms Belinda

question 10

Essay

You have been approached by a new client, Ms Belinda Nguyen to prepare her 2014 income tax return. At the interview, Belinda provides you with the following information to assist with the completion of her tax return:
$\begin{array}{lr}\text { Details } & \text { Amount }(\$) \\\text { Gross Salary } & 57,500 \\\text { PAYG tax instalments deducted } & 14,000 \\\text { Franked dividends } & 2,300 \\\text { Union fees } & 600 \\\text { Stationery } & 80 \\\text { Subscriptions } & 130 \\\text { Telephone expense (total) } & 280 \\\text { (Allocated as 30\% business) } &\end{array}$ a) Calculate Belinda's 2014 taxable income.
b) Calculate Belinda's 2014 net tax payable / refund including the medicare levy and any low income tax offset.
c) After adjusting to remove the PAYG tax instalments deducted and the non-cash adjustment for franked dividends as part of assessable income, calculate the average tax rate payable by Belinda for the 2014 year. Note that Average tax rate = Adjusted tax payable / Adjusted taxable income.

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Definitions:

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The supplementary income earned from the sale of one extra unit of a good or service.

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