Li earned a salary of $75,000 for the year ended 30 June 2018. She also received additional income and paid expenses as follows: • Fully franked dividends of $2,500 • Un-franked dividends of $20,000 • Net rental income of $9,000 • Capital losses on sale of shares $8,000 • Bank charges of $150 on her investment account where the dividends were banked • Tax agent’s fees of $500 • Purchase of a raffle ticket for $100 from the Royal Children’s Hospital. The prize was a motor vehicle REQUIRED: Calculate Li’s taxable income and tax payable including Medicare levy for the year ended 30 June 2018. State any assumptions that you make. Where possible questions should be answered with reference to legislation, case law and/or principles of tax law.
