Income Taxation Law Assignment
CLIENT INFORMATION: General Facts:
Jane Bennett is 45 years old and is an Australian resident for tax purposes. Jane is an employee registered nurse working for Brisbane Paediatric Hospital. Jane has been working as an emergency department nurse since she completed her Bachelor of Nursing degree twenty years ago. She lives in a unit in Kangaroo Point with her partner Glen (47 years old) and their two dogs Lola and Fred, they don’t have any dependants. Jane and Glen have never been married, however they have been together for 10 years. The unit at Kangaroo Point is solely in Glen’s name, however there is a mortgage for the unit that is in both Jane and Glen’s names. The unit was purchased in 2005.
Jane is completing a Master of Advanced Nursing Practice at Griffith on a part time basis. She attends classes two nights a week during each Semester.
Jane has supplied you with the information below relating to her personal income tax affairs for the year ended 30 June 2018. However, she is not certain whether everything she has provided you with is assessable or deductible. Because of her uncertainty, she has asked you to carefully consider each item and determine whether it is assessable or deductible. Jane wishes to minimise her 2017/18 taxable income wherever legally possible and she will be lodging income tax returns in further years. Assume that the amounts detailed below are all of Jane’s receipts and expenditure for the 2017/18 income year, and that all of her expenses are correctly substantiated (unless stated otherwise).
- Personal information
Client Full Name: Jane Bennett Date of Birth: 21 April 1973 Occupation: Nurse Tax File Number: 111 888 999 Telephone Number:
(07) 1111 2222
Home Address: 20 Novo Street Kangaroo Point Q 4169
Information about Glen is
Full Name: Glen Brown Date of Birth: 22 May 1971 Occupation: Physiotherapist Tax File Number: 111 777 888 Telephone Number: (07) 1111 2222 Home Address: 20 Novo Street Kangaroo Point Q 4169 Taxable Income 2018 $280,000 Reportable Super Contributions
Reportable Fringe Benefits Amount
- Prior income tax returns
Jane used the services of her sister (who is not a registered tax agent) to help her complete her 2016/17 tax return. Her sister sent her an invoice of $440 for the tax return preparation. Jane paid it on 20 July 2017.
Jane gave her friend, Jill, a Westfield voucher (worth $50) for some tax advice about selling some shares during the year.
Jane paid her 2016 income tax liability three months late, so the Australian Taxation Office (ATO) imposed $600 in general interest charges (GIC), which she paid on 2 March 2018.
- Salary and Wages
During the 2017/18 income year, Jane worked as a nurse for Brisbane Paediatric Hospital.
Jane was provided with a PAYG Payment Summary from her employer for the period from 1 July 2017 to 30 June 2018, which included the following information:
Name of Payer: Brisbane Paediatric Hospital ABN of Withholder: 00 111 222 555 Gross payments: $84,450
Allowances (see Note below): $800 PAYG tax withheld: $19,860
Reportable Fringe Benefit Amount (RFBA): $7,000 Reportable Super Contribution (RSC): $2400
Note that the gross payments of $84,450 includes an amount of $1,250 for annual leave that was paid to Jane on 1 July 2017, although she took the leave in the prior tax year of June 2017.
Note that the total allowances paid of $800 is made up of $300 for Uniform allowance and $500 for Meal allowance.
Note the RFBA relates to an amount of money that Jane has salary sacrificed from her wages to be provided with a car by Qld Health. The RSC relates to $2,400 that Jane has salary sacrificed into her superannuation. In addition, Queensland Health has paid in $7, 910 as superannuation guarantee on behalf of Jane.
Jane does not have a HELP debt or a Financial Supplementary debt, or any trust distributions.