Assignment title: Information

Question 1 (25 marks): Susie Quattro, aged 30, is a single mother with a 4 year old daughter – Sophie – of whom she has sole care. Sophie had $250 assessable income for the current tax year. Susie is an eligible beneficiary of the Musical Family Discretionary Trust. The trustees decided to distribute a cash amount of $10,000 to Susie for the current tax year. Susie also receives $10,000 fully franked dividends. Susie has a $16,000 HELP debt. Susie received $89,000 (gross income) from employment at Jackson Pty Ltd for the period 1 July 2015 to 30 June 2016. The correct amount of PAYG has been withheld. Susie did not receive a Parenting Payment from Centrelink. Susie reports interest income of $375. Susie advises of investment expenses of $150. Susie receives rental income of $25,000 from an investment property. The associated expenses are: • Mortgage repayments: $15,000 • Repairs: $1,000 • Rates: $1,500 • Insurance: $300 Susie sold a parcel of 100 Coles Myer Group shares on 1 July 2015 for $2,500. She had purchased these shares on 1 July 2009 for $800. Her brokerage costs of buying and selling were $200 in total. Susie made donations (for which she presents tax invoices and receipts) to the value of $800. Susie does not wear a uniform to work. Susie salary sacrificed $2,500 to Superannuation. Susie pays premiums on an income protection insurance policy equivalent to $500 per year. Susie does have Private Health Insurance. Required: Task # Task Description Marks 1 Calculate the net tax payable/ refund situation for Susie for the current tax year (include references, calculations & assumptions) 10 2 Complete the current year Income Tax Return for Susie 10 3 Prepare a letter of advice to Susie explaining her current year Income Tax Result. 5 Question 2 (15 marks): Clear Cache Pty Ltd is a resident domestic cleaning company registered with the following information: TFN: 589 366 214 ABN: 89 522 647 854 ACN: 86 552 334 789 The following is the financial information for the year ended 30 June 2016. GST (where it is applicable) has not been removed from the following amounts. Depreciation (for tax purposes) was reported to be $4,500 for the current year. Income: Sales 245,000 Exempt income 5,000 Dividends (fully franked) 11,260 Interest received 800 Compensation from a client who failed in a legal suit to obtain damages from Clear Cache Pty td for alleged carpet damage. 6,000 Net capital gain 5,000 Expenses: Advertising (print, net, signage, flyers) 1,900 Bad debts 500 Bank Charges 100 Capital expenditure (qualifies for immediate deduction) 2,000 Cost of sales 5,000 Sub-contractor expenses 25,000 Depreciation expenses 3,000 Electricity 500 Entertainment 1,000 Environmental protection (disposal of cleaning chemicals) 500 Fines (speeding and parking tickets) 400 Insurance 500 Interest expenses within Australia 1,000 Lease expenses within Australia 4,000 Motor Vehicle 3rd Party insurance 550 Motor Vehicle expenses (petrol & maintenance) 5,000 Motor Vehicle Registration 1,000 Rent expenses 10,800 Stationery & Office supplies 200 Tea, coffee, sugar & milk for staff use 150 Telstra (Phones & Internet) 2,050 Wages 40,000 Required: Task # Task Description Marks 1 Calculate the net tax payable/ refund situation for Clear Cache Pty Ltd (include references, calculations & assumptions) 10 2 Complete the current year Income Tax Return for Clear Cache Pty Ltd 5