Calculate Elizabeths tax payable or refundable

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Question - Foreign Pension

Elizabeth Windsor is 59 years old. She is a resident taxpayer with private health insurance. She also received a government pension from the United Kingdom that is taxable in Australia but not in the United Kingdom. Elizabeth is subject to tax as an Australian resident taxpayer but exempt from tax in the United Kingdom.

During the 2017/18 tax year, Elizabeth derived interest and unfranked dividends of $39,000 and also received $25,000 of pension.

Required -

a. Calculate Elizabeth's taxable income for the 2017/18 tax year.

b. Calculate Elizabeth's tax payable or refundable for the 2017/18 tax year.

Reference no: EM132545752

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