2007 Basic Course Chapter 5 Question 5

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Filling out the I Form

Item number	Amount	Code	Notes and calculations
Income			D9 DEDUCTION Life expectancy: 15.41 years (Sep 1998) Total UPP: 10947 Annual UPP: 10947/15.41 = 710 The September 2005 date in the question is incorrect.
7	1732 16844		LIFETIME ANNUITY
10	150.84 1940		1629+311
11T	184		136+48
11U	78		58+20
12U	455	P
17	39		Y 17A 78
19D	7397		19E will be 7397+95 = 7492
19M	95
Total tax withheld	1732
Assessable income	27032
Deductions
D5	42		Maximum union deduction for a non-working member.
D8	420		Purchase of tea towels not deductible.
D9	710
D10	153		130+23
D12	1849		7397 x 25%
Total deductions	3174
Taxable income	23858		Assessable income MINUS Total deductions
Tax offsets
Total tax offsets
Other

Tax calculation

Taxpayer's name Johannes BEEL
Taxable income 23858 Threshold 6000
Basic tax payable		2678.70	Notes and calculations
Tax offsets
	MINUS total
	Subtotal		Must not be less than zero
Levies etc
Medicare levy	357.87		23858 x 1.5%
Medicare surcharge
HELP			NOTES 1] Remember at item 7 you just write the type of payment, not the name of the super fund. 2] Even if share dividends are re-invested to buy more shares, the dividends must still be declared. 3] TFN tax withheld from bank interest will be credited back to the taxpayer when they lodge their tax return. 4] There is no deduction if somebody has bought a useful item from a charity, except under very special circumstances (not part of the basic course). NOTE: Badges, ribbons, and red noses do not count as USEFUL items. In these cases the donation will still be deductible.
SFSS
	PLUS total	357.87
Tax credits
TIDs (PAYG withholding)
Franking credits
TFN tax
Foreign tax credit
PAYG instalment credit
Private health ins offset
Baby bonus
Other
	MINUS total
balance payable or refund due			REFUND

NOTES

1) The pension started in September 1998. The 2005 year in the question is incorrect.