LT021288_TestA_WPS_FNSACC502_Ed4_5 copy
2 LT021288; Workplace Simulation Test A; FNSACC502 Ed 4&5
© New South Wales Technical and Further Education Commission, 2016 (TAFE NSW – WSI), Archive version 1, May 2016
QUESTION XXXXXXXXXXMarks)
(a) Glen and Roslyn (both aged 26 years old) are resident ma
ied taxpayers.
During the 20154/16 tax year, Glen derived a taxable income of $130,000 and his PAYG
payment summary showed reportable fringe benefits of $6,000 and P.A.Y.G deductions
of $40,000.
Roslyn had a taxable income of $25,000.
They have 2 dependent children. They were not covered for private health insurance
until 1 January 2016. From 1 January 2016 to 30 June 2016, they paid $3,200 of
premiums to MBF for health insurance, which included hospital cover. The reduced
premium option was not taken.
Required:
Calculate for Glen (only) his net tax payable or refundable for the 2015/16 tax year.
Show all workings and calculate any tax offsets to which he is entitled. (5 marks)
(b) Eamon, a 58 year old resident taxpayer, derived a taxable income of $53,000 solely from
salary as a warehouse supervisor.
His P.A.Y.G. payment summary showed P.A.Y.G. deducted of $10,000.
Eamon lives with and contributes to the maintenance of his aged father. His father's
only income is $3,200 from investments.
Eamon paid $3,700 for a disability aid for his father. He did not receive any medical
efund for this expense.
He pays $1,600 for private health insurance and he takes the reduced premium option.
Required:
Calculate Eamon's net tax payable or refundable for the year ended 30th June 2016.
Show all workings and calculate any tax offsets to which he is entitled. (6 marks)
(c) Bev is a 68 year old resident taxpayer. Bev is single and derived a taxable income of
$23,500 for the year ended 30 June 2016.
The taxable income consisted of
Old age social security pension paid by Centrelink 13,500
Fully franked dividends 7,000
Franking credits 3,000
TAXABLE INCOME $23,500
Required:
Calculate Bev’s net tax payable or refundable for the year 2015/16 tax year. Show all
workings and calculate any tax offsets to which she is entitled. (4 marks)
3 LT021288; Workplace Simulation Test A; FNSACC502 Ed 4&5
© New South Wales Technical and Further Education Commission, 2016 (TAFE NSW – WSI), Archive version 1, May 2016
QUESTION XXXXXXXXXXMarks)
Janice Jolly a resident taxpayer purchased a house as an investment property on 1 July
2015.
Purchase price of the property was $500,000 (see note 1).
The previous owner provided a statement to Janice certifying that the property was
constructed and completed on 1st January 1993 at a construction cost of $150,000.
The house was in good repair except that the interior required complete
epainting.
Janice recorded the following receipts and payments for the 2015/16 tax year in respect
of the rental property:
RECEIPTS
Rent received (net of agents commission withheld $2,000)
Compensation from the Rental Bond Board for tenants who left and did
not pay the rent they owed (see note 2)
$
22,000
1,200
Rent in advance from new tenants for the period 1 June 2016 to 31
August 2016
4,200
Reimbursement of lease preparation fee (partial only) 150
Insurance recovery for storm damage to fence
PAYMENTS
Mortgage repayments to Westpac Bank
- principal
8,000
5,000
- interest
Loan application fees to the Bank for a 10 year mortgage...loan to buy
the investment property - paid on approval of the loan 1 July 2015
12,000
1,500
Council Rates 2,500
Building Insurance premiums
Payments to solicitors
- for lease preparation fees
900
250
- to eject tenants for non-payment of rent 800
Repairs - to paint the interior of the house - ca
ied out on 10 July 2015
Repairs - to fix storm damage to the fence - ca
ied out on 12 August
2015
3,100
1,500
Construction costs of
ick room to store ga
age bins and gardening
equipment - ca
ied out on 1 May 2016.
12,000
Garden hose and attachments 150
Travel costs (see note 3) 1,250
Pest control costs to eliminate a cockroach infestation 400
Payments to a registered tax agent - preparing 2011/12 tax return
Payments to the Australian Taxation Office-
- additional tax on an amended assessment
200
500
- fine for late lodgment of 2014/15 tax return 900
4 LT021288; Workplace Simulation Test A; FNSACC502 Ed 4&5
© New South Wales Technical and Further Education Commission, 2016 (TAFE NSW – WSI), Archive version 1, May 2016
OTHER INFORMATION
Note 1 -
The purchase price of the property is
oken up as follows:
- Land and buildings 472,800
Depreciating assets
- Carpets 9,000
- Hot water system electric 1,200
- Ceiling fans 1,600
- Ba
ecue – fixed 1,400
- Window blinds internal 8,000
- Window curtains 6,000
500,000
Note 2 - The Rental Bond Board paid the money owed by the tenants.
Note 3 - Janice lives in Sydney. Once during the year she went to Brisbane by
aero plane to inspect the property and meet with the real estate agents and
tenants. She also took the opportunity to take a holiday in Brisbane and see the
sights. She estimates that 60% of her time was spent on matters related to the
ental property. Costs were $500 for airfares and $750 for accommodation.
Note 4 - Janice will use the Commissioners estimate of effective life for calculation
decline in value which can be found under Rental, Hiring and Real Estate Services
(MTG 43-065)
Required:
Calculate Janice's taxable income for the 2015/16 tax year
5 LT021288; Workplace Simulation Test A; FNSACC502 Ed 4&5
© New South Wales Technical and Further Education Commission, 2016 (TAFE NSW – WSI), Archive version 1, May 2016
QUESTION XXXXXXXXXXMarks)
Ha
y Wilson, a forklift driver with Hoist Ltd, received a severe injury while driving a forklift at
work on 1 Fe
uary 2016. As a result of the injury, Ha
y received the following amounts;
Workers Compensation $5,000
Reimbursement of medical expenses by Hoist Ltd $1,800
Damages for personal injury $8,000
Briefly discuss whether any of the amounts are assessable. You can refer to the relevant
paragraphs of the Master Tax Guide.
QUESTION XXXXXXXXXXMarks)
Tan Eames a resident Australian taxpayer aged 62 years is employed as a Software expert.
Tan works for Generic IT Machines maintaining computer systems.
Tan resigned from his job on 30 June 2016 to become a grey nomad and travel around
Australia.
His P.A.Y.G. statement showed the following for the year ended 30 June 2016:
• Gross wages 160,000
• Total tax withheld (P.A.Y.G. deducted) 35,000
• Unused annual leave payment (post 17/8/93) 4,100
• Reportable Fringe Benefits 4,000
• Health insurance premiums deducted and forwarded to HCF 1,500
• Union fees deducted 400
Tan provided the following information to his accountant to assist in the preparation of
his 2015/16 tax return.
Other money received:
• A cash gift from his friends and boss at work on leaving the job 400
• Refunds from HCF and Medicare for medical expenses 1,200
• A superannuation income stream benefit (taxed in the fund) 20,000
Cash payments made:
• Purchase of suits and shoes 1,400
6 LT021288; Workplace Simulation Test A; FNSACC502 Ed 4&5
© New South Wales Technical and Further Education Commission, 2016 (TAFE NSW – WSI), Archive version 1, May 2016
Tan uses plant and equipment in his job details as follows:
ASSET COST $ DATE EFFECTIVE ADJUSTABLE BUSINESS DIV
PURCHASE LIFE VALUE $ USAGE METHOD
(30/6/15)
Mobile 1,500 1/6/ XXXXXXXXXX% Diminishing
Phone Value
Office 3,600 1/6/ XXXXXXXXXX,100 60% Prime Cost
Furniture
Overhead 860 1/2/ XXXXXXXXXX%
Projector
Laptop 1,800 1/11/ XXXXXXXXXX%
Computer
280 1/8/ XXXXXXXXXX%
Printer
Tan began a low value pool in the 2014/15 tax year.
• The balance of the pool at 1st July 2015 was $650.
Required:
a) Calculate Tan's taxable income for the year ended 30 June 2016
• Tan wishes to maximise his deductions.
• Show how you derived the amount for decline in value as a separate
calculation. (10 marks)
) Calculate the value of the low value pool balance as at 30 June 2016 as a separate
calculation. (5 marks)
7 LT021288; Workplace Simulation Test A; FNSACC502 Ed 4&5
© New South Wales Technical and Further Education Commission, 2016 (TAFE NSW – WSI), Archive version 1, May 2016
QUESTION 5. (8 Marks)
During the tax year ended 30 June 2016, Russell Evans incu
ed expenditure in respect of money paid
to his tax agent for the following transactions:
Lodgments of his 2014/2015 individual tax return $400
Preparation and lodgment of the objection to his assessment $750
GST advice on his business a
angements $400
Income tax advice on creating a family trust $300
Required:
Briefly discuss whether any of the amounts are deductible for 2015/16 tax year. You can refer
to the relevant paragraphs of the Master Tax Guide.
QUESTION XXXXXXXXXXMarks)
Liam Limerick is single