$20 Bonus + 25% OFF
Securing Higher Grades Costing Your Pocket? Book Your Assignment at The Lowest Price Now!

Calculation Of Income Tax Case Study

tag 0 Download4 Pages 879 Words tag Add in library Click this icon and make it bookmark in your library to refer it later. GOT IT


1.Calculate  the  Net  Income  Tax  Payable  or  refund  due  to  the  taxpayer  for  the 2015/2016 tax year. State the Specific Taxation Rules relevant to the above events to Support your Arguments and Calculations. 

2. Determine whether the above Events are assessable during the year ending 30 June 2016? Ensure you State the Specific Legislation, tax rulings and Case Law to Support your answer.     

3. Calculate the Amount of tax to be withheld by the Employer due to the Termination of her Employment. 


1.Income of Mr Marc for the year ending on 30th June 2016:


(Amount in $)

Salary (6-5 ITAA97):


Annual leave compensation received (6-5 ITAA97):


Travel allowance (6-5 ITAA97):


Worker compensation (Note 1):


Interest Income (under subsection 6-5 (4)):


Amount received as get well gesture:


Assessable Income:


 Calculation of income tax payable for the tax year 2015-16

                                           Year 2015-16                                       ( Amount in $)

Calculation of income tax payable by Mr Marc









Capital Gain

Tax already paid






Gross salary





Annual leave compensation





Travel allowance





Worker Compensation





Interest income on term deposit





Amount received as get well gesture










Total Income










Deductions (note 2)










Adjusted Income




Personal allowance




(Note: In present case as the income is below than 100,000 ; thus personal allowance will be provided)





Taxable Income








Tax (working note 3 )





 Already Paid (note 4)










Working Notes



 Amount in $  

Note -1


Worker Compensation


 In accordance with the case law (FCT v Dixon (1952) 86 CLR 540; replacement principle will be applied at amount received as worker compensation will be taxable, and rest amount will be exempted (Barkoczy, 2016).



Note -2




Amount paid for firefighting gear




Note – 3

Calculation of Tax










Total Tax






$ 500 (1-49%)



Tax = 980 *49 %



Total tax




Tax already deducted


Tax deducted by employer


Tax deducted by bank




2.Determination of taxability of events

By considering the provided case study, there are three events two are redundancy package and Payment in lieu of annual leave provided by the employer and last one is Rent free benefit received in the lease. In accordance with the Australian Taxation office, in the case where genuine redundancy at the time of termination then same will be taxable but at concessional rates. Same is supported in taxation ruling of TR 2009/2 (Redundancy payments, 2016). Same provisions are applied in case if payment is received in against of lieu of annual leave. This provision is covered under Section 15-25 of Taxation Administration Act 1953 (TAA). However, in the case of rent free lease for 6 months is not taxable the covered period is covered under concession lease terms. Further, the landlord is not in a position to get a deduction as rent is not payable by the tenant consequently it will not be considered income Jane Nobles.

3.Amount of tax to be withheld by employer



Payment related to genuine redundancy

$529 (WN 1)

Payment in lieu of annual leave


Rent free benefit


Total taxable income


Tax rate (inclusive of 2% medical levy)

17%(WN 2)

Tax to be paid


Working note 1

Redundancy benefit is not taxable up to a certain extent. By considering provisions of 2016/17 exempt amount is $9,936 along with $4,969 to be multiplied by years served by an employee.

Exempt amount

=$9936 + $4969*15


Taxable amount:



Working note 2

ETP will be concessional taxed at a maximum of 32% in case age of the individual is below 55) and 17% will be applied if age is 55 or higher. This rate is inclusive of 2% medical levy up to the income of $195000. On higher income, tax to be paid at the rate of 47% (Australian tax legislation, 2002).



Australian tax legislation 2002. (2002) (1st ed.). Pyrmont, N.S.W.

Barkoczy, S. (2016), Core Tax Legislation & Study Guide, 19th edn, Oxford University Press.

Cheng, H., & Yang, C. (2013). Some Taxation Theorems in the Hotelling Model. Australian Economic Papers, 52(3-4), 143-158.

LAFFER, K. (2008). TAXATION REFORM IN AUSTRALIA. Economic Record, 18(2), 168-179.

Redundancy payments. (2017). Retrieved 28 March 2017, from


Cite This Work

To export a reference to this article please select a referencing stye below:

My Assignment Help. (2018). Calculation Of Income Tax Case Study. Retrieved from

"Calculation Of Income Tax Case Study." My Assignment Help, 2018,

My Assignment Help (2018) Calculation Of Income Tax Case Study [Online]. Available from:
[Accessed 02 April 2020].

My Assignment Help. 'Calculation Of Income Tax Case Study' (My Assignment Help, 2018) <> accessed 02 April 2020.

My Assignment Help. Calculation Of Income Tax Case Study [Internet]. My Assignment Help. 2018 [cited 02 April 2020]. Available from: has become one of the leading assignment help provider in New York City and Boston. We provide top class auditing assignment help. Not only auditing, but we also cover more than 100 subjects and our writers deal with all types of assignments with utmost expertise. To make writing process faster and accurate, we have segmented our assignment experts' teams as per their expertise on writing different types of assignments. We guaranteed that students who buy our assignment online get solutions worth their investment.

Latest Tax Samples

HI6028 Taxation Theory, Practice And Law Assessment

Download : 0 | Pages : 8

Answers: Question 1 Provisions The provision related with the determination of the assessable income of the partnership firm is contained in the Pt III of Division 5 of the Income Tax Assessment Act 1997.  Tax is chargeable on the all income which is derived by the firm from the ordinary course of the business activity (Butler, and Giles, 2018). Along with this, normally all the expenses which are incurred for carrying the business acti...

Read More arrow

HI6028 Taxation Theory Practice And Law T3 2018

Download : 0 | Pages : 6

Answer: Introduction The Section 4-15 of the Income Tax Assessment Act, 1997 lays down the way in which taxable income is to be calculated for the income year (1st of July to 30th June), as per this section taxable income = Assessable income – Deductions, Assessable income is as explained in division 6 and the deductions allowable in division 8 where division 35 prevents losses from non-commercial business activities that may ...

Read More arrow

200869 Principles Of Taxation Law

Download : 0 | Pages : 7

Answer: Introduction: The current case study provides the scenario that the Rob has inherited the business that contained the small plot of land. An adjacent plot of land was purchased by Rob so that he can set up the plant of concrete recycling by paying stamp duty and legal fees. Due to the rapid residential development Rob failed to set up the concrete recycling plant. On noticing the current boom in the residential property if Rob takes i...

Read More arrow Tags: Australia Balmain Management principlesof finacial markets University of New South Wales 

TABL3016-Case Report Of Kishore V Tax Practitioners Board

Download : 0 | Pages : 9

Answer: Introduction: In the case of “Kishore v Tax Practitioners Board [2016] AATA 764” Mr Kishore became the registered tax agent on 7th March 2011, at the time of working for his employer, Charltons CJC Pty Ltd. The company provided accounting and tax agent services for the clients. In this case, seven preliminary questions originating from the decisions of the board defined that Mr Kishore considered his behaviour in...

Read More arrow

Law300 Taxation Law Assignment Management

Download : 0 | Pages : 8
  • Course Code: LAW300
  • University: Charles Sturt University
  • Country: Australia

Answer: Income Tax Computation   Accounting Income tax Gross salary 50,000 50,000 PAYG   (3,250) Performance bonus 25,000 25,000 Clothes allowance 4,500 4,500 ICA ANZ annual membership 1,250 1,250 Trip charges   (4,650) Taxi expense   (4,000) Billed income 45,0...

Read More arrow

Save Time & improve Grades

Just share your requirements and get customized solutions on time.

We will use e-mail only for:

arrow Communication regarding your orders

arrow To send you invoices, and other billing info

arrow To provide you with information of offers and other benefits




Overall Rating



Our Amazing Features


On Time Delivery

Our writers make sure that all orders are submitted, prior to the deadline.


Plagiarism Free Work

Using reliable plagiarism detection software, only provide customized 100 percent original papers.


24 X 7 Live Help

Feel free to contact our assignment writing services any time via phone, email or live chat.


Services For All Subjects

Our writers can provide you professional writing assistance on any subject at any level.


Best Price Guarantee

Our best price guarantee ensures that the features we offer cannot be matched by any of the competitors.

Our Experts

Assignment writing guide
student rating student rating student rating student rating student rating 5/5

2109 Order Completed

99% Response Time

Emma Zhong

Ph.D in Project Management with Specialization in Project Communications Management

Singapore, Singapore

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

234 Order Completed

100% Response Time

Samantha Ji

PhD in Chemistry with Specialization in Organic

Singapore, Singapore

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 4/5

1309 Order Completed

100% Response Time

Gemmie Chen

MSc in Nursing

Singapore, Singapore

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

285 Order Completed

99% Response Time

Eugene Baranowski

MBA in Supply Chain

London, United Kingdom

Hire Me

FREE Tools


Plagiarism Checker

Get all your documents checked for plagiarism or duplicacy with us.


Essay Typer

Get different kinds of essays typed in minutes with clicks.


GPA Calculator

Calculate your semester grades and cumulative GPa with our GPA Calculator.


Chemical Equation Balancer

Balance any chemical equation in minutes just by entering the formula.


Word Counter & Page Calculator

Calculate the number of words and number of pages of all your academic documents.

Refer Just 5 Friends to Earn More than $2000

Check your estimated earning as per your ability




Your Approx Earning

Live Review

Our Mission Client Satisfaction

expert working good with ratio analysis i got full marks for ratio but overall good presentation.


User Id: 207116 - 02 Apr 2020


student rating student rating student rating student rating student rating

excellent work by tutor and quality of good work excellent work by tutor and quality of good work excellent work by tutor and quality of good work excellent work by tutor and quality of good work excellent work by tutor and quality of good work


User Id: 264013 - 02 Apr 2020


student rating student rating student rating student rating student rating

Brilliant work, paid attention to every details, And submitted on time for review.


User Id: 338016 - 02 Apr 2020


student rating student rating student rating student rating student rating

The report was exceptional. Thank you for helping me with this assignment, and I am very satisfied with the result. The content was exceptional and my grade was exactly what I needed, the writer was very on point and finished my report in a timely ma...


User Id: 262907 - 02 Apr 2020


student rating student rating student rating student rating student rating
callback request mobile
Have any Query?